LCC Projects Gears Up for IPO to Accelerate Growth

Ahmedabad-based LCC Projects has filed initial papers for an IPO with SEBI. The offering includes a fresh issue of Rs 320 crore and an offer-for-sale of 8.43% held by promoters. The IPO aims to repay debts and fund equipment purchases as the company looks to expand its EPC business.

LCC Projects, an engineering, procurement, and construction (EPC) firm headquartered in Ahmedabad, has submitted documents to SEBI for an initial public offering (IPO). The IPO comprises a fresh issue of equity shares valued at Rs 320 crore and an offer-for-sale (OFS) of up to 2.29 crore equity shares, constituting an 8.43 per cent stake from promoters.

According to the filed draft red herring prospectus, company promoters Arjan Suja Rabari and Laljibhai Arjanbhai Ahir intend to sell up to 1.14 crore equity shares each through the OFS. LCC Projects plans to raise Rs 64 crore through pre-IPO placements, potentially reducing the fresh issue size.

The company aims to use Rs 220 crore from the fresh issue to repay existing debts and Rs 14.91 crore for purchasing equipment. The remaining funds will support general corporate purposes. LCC Projects, in operation for over two decades, specializes in irrigation and water supply engineering. As of last year, it has an order book worth Rs 7,347.42 crore. The IPO will list on NSE and BSE, managed by Motilal Oswal Investment Advisors.