Ahmedabad-based LCC Projects has submitted preliminary papers to Sebi for an IPO to raise funds. The IPO consists of a fresh issue of equity shares worth ₹320 crore and an offer-for-sale (OFS) component of up to 2.29 crore equity shares or 8.43% stake by the promoters, according to the draft red herring prospectus (DRHP). The promoters, Arjan Suja Rabari and Laljibhai Arjanbhai Ahir, will each sell up to 1.14 crore equity shares through the OFS. The company may also raise ₹64 crore through pre-IPO placement, which would reduce the size of the fresh issue. The net proceeds from the fresh issue, amounting to ₹220 crore, will be used to repay debt, with ₹14.91 crore allocated for the purchase of equipment and the remaining balance for general corporate purposes.
LCC Projects is a multidisciplinary engineering, procurement, and construction (EPC) company with experience in executing projects in the irrigation and water supply sector. The company has an order book of ₹7,347.42 crore as of September last year. In the first half of FY24, the company reported revenue from operations of ₹1,468 crore and a profit after tax (PAT) of ₹117.94 crore. For the full year FY24, revenue from operations stood at ₹2,438.91 crore, with a PAT of ₹122 crore. The equity shares of the company are set to be listed on the NSE and BSE, with Motilal Oswal Investment Advisors acting as the sole book-running lead manager and KFin Technologies as the registrar to the issue.
