LCC Projects Eyes Capital Market Entry with Rs 320 Crore IPO; Files Draft Papers with SEBI
LCC Projects Eyes : Gujarat-based infrastructure company LCC Projects has taken a significant step towards going public, filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on February 21, 2025. The Ahmedabad-based engineering, procurement, and construction (EPC) firm aims to raise funds through an Initial Public Offering (IPO), which will include both a fresh issue of shares and an offer-for-sale (OFS) by its promoters.
IPO Details and Fundraising Plan
As per the DRHP, the IPO will consist of:
- A fresh issuance of equity shares worth ₹320 crore
- An offer-for-sale (OFS) of 2.29 crore equity shares by its promoters
Promoters Arjan Suja Rabari and Laljibhai Arjanbhai Ahir will each offload 1.14 crore equity shares through the OFS route.
Additionally, the company is exploring the possibility of raising ₹64 crore in a pre-IPO placement round. If LCC Projects successfully raises this amount, the fresh issue component will be reduced accordingly.
The IPO will be managed by Motilal Oswal Investment Advisors, serving as the sole merchant banker for the issue.
LCC Projects: A Key Player in India’s Infrastructure Sector
LCC Projects is a well-established name in the infrastructure and construction sector, particularly in the irrigation and water supply space. Over the past two decades, the company has built a robust portfolio of projects across India. Some of its key services include:
- Construction of dams, barrages, and weirs
- Hydraulic structures and canal development
- Pipe distribution networks
- Lift irrigation systems
- Water supply schemes
With a focus on government contracts and large-scale infrastructure development, LCC Projects has steadily expanded its business and financial strength.
Strong Order Book Reflects Growth Potential
As of September 2024, the company’s order book stood at ₹7,347.4 crore, marking an increase from ₹6,269 crore in March 2024. This growth underscores the strong demand for LCC Projects’ services and its ability to secure high-value contracts.
With infrastructure development being a top priority for the Indian government, the company’s expertise in water management and irrigation is expected to drive further growth.
Financial Performance: Impressive Growth Over the Years
LCC Projects has reported strong financial growth, showcasing its ability to scale operations efficiently.
Between FY22 and FY24, its revenue and profit grew at a remarkable CAGR (Compound Annual Growth Rate), indicating robust business performance.
Key Financial Metrics (FY22–FY24)
| Financial Metric | FY22 | FY24 | CAGR (%) |
|---|---|---|---|
| Revenue (₹ Cr) | 789.2 | 2,438.9 | 76.73% |
| Net Profit (₹ Cr) | 22.8 | 122.0 | 85.81% |
| EBITDA (₹ Cr) | 86.3 | 241.4 | 67.26% |
| Order Book (₹ Cr) | 4,850 | 7,347.4 | 25.21% |
The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) has also seen a healthy increase, growing at a CAGR of 67.26% over the same period. This highlights LCC Projects’ operational efficiency and strong profit margins.
What the IPO Means for Investors
LCC Projects’ IPO presents a unique opportunity for investors looking to capitalize on India’s infrastructure growth story. Here’s why this IPO is worth considering:
- Strong Financials – Consistent revenue growth and improving margins make it a promising investment.
- Robust Order Book – The company has a well-diversified project pipeline, ensuring future revenue visibility.
- Government-Backed Growth – India’s focus on infrastructure expansion, especially in irrigation and water supply, aligns well with LCC Projects’ expertise.
- Experienced Leadership – The company is led by seasoned promoters with deep industry knowledge.
Conclusion
With its IPO plans in motion, LCC Projects is gearing up for the next phase of expansion. The company’s strong financial performance, growing order book, and leadership in the EPC space make it an attractive proposition for investors.
As India continues investing in large-scale infrastructure projects, LCC Projects is well-positioned to capitalize on new opportunities and deliver sustained growth.
This IPO is expected to attract significant investor interest, making it one of the most anticipated public offerings in the infrastructure sector. Stay tuned for more updates as LCC Projects moves closer to listing on the stock market!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.