LCC Projects is an EPC construction company. The company submitted its issue papers to the Securities and Exchange Board of India (SEBI). LCC Projects IPO is a mix of fresh shares (~INR 320 crore) and an offer-for-sale (OFS) of 2,29,40,000 equity shares. Motilal Oswal Investment Advisors is the book-running lead manager and KFin Technologies is the registrar of the issue.
LCC Projects IPO – Company Overview
LCC Projects is known for its irrigation and water supply infrastructure. The company has a presence in 11 states, including Gujarat, Madhya Pradesh, Odisha, Rajasthan, Maharashtra, Uttar Pradesh, Karnataka, Jharkhand, Chhattisgarh, Himachal Pradesh, and Haryana. The company has completed several major projects such as the construction of Dams, barrages, canals, and lift irrigation.
LCC Projects also completed metro rail projects which include four elevated stations and a 1.3 km viaduct. The company also built a utility tunnel in GIFT City for seamless infrastructure maintenance.
Promoters and Shareholding Structure
Key promoters include:
- Arjan Suja Rabari – 41% (11,15,20,000 shares)
- Laljibhai Arjanbhai Ahir – 41% (11,15,20,000 shares)
- Maya Arjan Rabari – Negligible (8 shares)
- Promoter Group – 18% (4,89,59,992 shares)
The post-offer shareholding will be determined upon finalizing the issue.
Selling Shareholders in the OFS
- Arjan Suja Rabari – Up to 11,470,000 shares (acquisition cost: INR 0.67 per share)
- Laljibhai Arjanbhai Ahir – Up to 11,470,000 shares (acquisition cost: INR 0.70 per share)
Financial Performance
LCC Projects has demonstrated strong financial growth:
| Particulars | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|
| Revenue from Operations | 2,438.91 | 1,225.27 | 780.90 |
| Total Income | 2,449.79 | 1,234.64 | 796.22 |
| EBITDA | 241.37 | 127.78 | 86.28 |
| Profit After Tax (PAT) | 121.99 | 68.22 | 35.33 |
| EBITDA Margin (%) | 9.90% | 10.43% | 11.05% |
| PAT Margin (%) | 5.00% | 5.57% | 4.52% |
Revenue grew at a CAGR of 76.73% from FY 2022 to FY 2024, with PAT expanding at an 85.81% CAGR.
Use of Net Proceeds
- Purchase of Equipment – INR 14.91 crore
- Prepayment/Repayment of Borrowings – INR 220.00 crore
- General Corporate Purposes – Remaining funds
Ongoing and Completed Projects
As of 30 September 2024, LCC holds an order book worth INR 7,347.42 crore.
Top 3 Ongoing Projects
| Project Name | Customer | State | Contract Value (INR Crore) | Completion Year |
|---|---|---|---|---|
| Sondwa Lift Micro Irrigation Project | Narmada Valley Development Authority | Madhya Pradesh | 1,395.41 | 2030 |
| Sidhi Bansagar Multi-Village Scheme | Madhya Pradesh Jal Nigam Maryadit | Madhya Pradesh | 1,386.49 | 2025 |
| Gandhi Sagar 1 Multi-Village Scheme | Madhya Pradesh Jal Nigam Maryadit | Madhya Pradesh | 1,049.00 | 2025 |
Key Completed Projects
| Project Name | Customer | State | Project Value (INR Crore) | Completion Year |
|---|---|---|---|---|
| Dudhai Sub Branch Canal Project | Sardar Sarovar Narmada Nigam Limited | Gujarat | 320.16 | 2021 |
| Sitanagar Project | Water Resource Division, Damoh | Madhya Pradesh | 266.85 | 2023 |
| Parbati Dam Project | Customer 3# | Madhya Pradesh | 146.26 | 2023 |
Competitive Strengths
- Sector expertise – Extensive experience in EPC, particularly in water supply and irrigation.
- Financial strength – Solid balance sheet and growing order book.
- Geographic diversification – Presence across 11 states minimizes risk.
- Technology integration – Adoption of SCADA and GIS-based analytics.
Conclusion
LCC Projects IPO is positioned to expand in India’s EPC sector. The company has a strong order book, improving revenue, and a clear utilization plan, the company presents an opportunity for investors. However, market conditions and regulatory approvals will determine final investment viability.
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