One of the leading construction companies, LCC Projects submitted its draft red herring prospectus to market regulator SEBI intending to launch its IPO.
According to the Draft papers, This IPO will be the combination of both fresh issues worth Rs.320 crore and an offer-for-sale (OFS) component of 2.29 equity shares.
The company’s promoters, Arjan Suja Rabari, and Laljibhai Arjanbhai Ahir, would each be selling 1.14 crore equity shares through an offer-for-sale.
The company may plan to raise Rs.64 crores in pre-IPO placement. If they successfully plan to raise funds through pre-IPO placement, then the amount of Rs.64 crores will be deducted from the fresh issue component.
The proceeds worth Rs 220 crore raised through an Initial public offering will be utilized for the repayment of the existing debt taken by the company. While the amount worth Rs.14.91 crore will be used to buy the new equipment for the company’s growth and other funds will be used for the company’s general corporate purposes.
LCC Projects Limited is one of the fastest-growing companies in Gujarat renowned for successfully executing a comprehensive range of irrigation and water supply projects segment including the construction of dams, barrages, weirs, hydraulic structures, canals, pipe distribution networks, lift irrigation works, water supply schemes, and other EPC projects.
Its order book has 68 projects totaling Rs 7,347.4 crore as of September 2024, up from Rs 6,269 crore in March 2024.
The fiscal year ended on September 30, 2024, and the company generated a revenue of ₹14,681.13 million, the company generated ₹1,179.49 million in profit after Tax, while generating a net worth of ₹5,000.56 million, respectively.
The appointed merchant bankers of this issue are Motilal Oswal Investment Advisors. The shares of this IPO will be listed on NSE and BSE, while the registrar of the company is KFin Technologies.
LCC Projects IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
LCC Projects Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹780.896 | ₹15.69 | ₹35.33 |
| 2023 | ₹1225.3 | ₹29.94 | ₹68.22 |
| 2024 | ₹2438.9 | ₹79.38 | ₹122.00 |
| Sep 2024 | ₹1468.1 | ₹49.93 | ₹117.95 |
LCC Projects IPO Valuation – FY2024
LCC Projects IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹4.48 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 31.87% |
| Net Asset Value (NAV): | ₹14.07 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Vishnu Prakash R Punglia Limited | 10.95 | 15.72 | 16.95 | 57.85 | 1473.9 Cr. |
| Enviro Infra Engineers Limited | 8.13 | 28.14 | 36.43 | 21.35 | 728.91 Cr. |
Objects of the Issue
- Purchase of equipment;
- Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company and
- General corporate purposes.
IPO Lead Managers aka Merchant Bankers
- Motilal Oswal Investment Advisors Limited
