Stock Lists at ₹191 on BSE and ₹189 on NSE

Shares of LCC Projects made a strong debut on the stock exchanges on Thursday, listing significantly above the company’s IPO price. The stock opened at ₹191 on the BSE, representing a premium of 31.4 per cent over the issue price of ₹146 per share. On the NSE, the shares listed at ₹189, registering a gain of 29.45 per cent.

The listing performance was stronger than grey market expectations. Before the debut, LCC Projects shares were reportedly trading at a grey market premium of ₹36, or 24.66 per cent, indicating an expected listing price of around ₹182 per share.

The actual listing price on both exchanges exceeded that unofficial indication, reflecting strong investor demand for the engineering, procurement and construction company.

LCC Projects IPO Subscription Details

The initial public offering of LCC Projects was open for subscription from September 9 to September 11. The issue received bids for approximately 1,01,52,31,908 shares against 54,43,229 shares on offer.

The IPO was subscribed 48.51 times, indicating strong demand across investor categories. The company had fixed the price band at ₹139–₹146 per share, with a lot size of 102 shares.

At the upper price band, retail investors were required to invest ₹14,892 for one lot, excluding applicable charges.

IPO Structure and Use of Proceeds

The LCC Projects IPO comprised a fresh issue of 1.77 crore shares aggregating to ₹258 crore and an offer for sale of 1.16 crore shares worth approximately ₹169.14 crore.

The fresh issue proceeds are intended to be used for debt reduction, the purchase of equipment and general corporate purposes.

The company plans to utilise ₹180 crore towards the prepayment or repayment of outstanding borrowings. Another ₹14.691 crore has been earmarked for purchasing equipment, while the remaining funds will be used for general corporate requirements.

The debt repayment plan is expected to support the company’s balance sheet by reducing finance costs and improving financial flexibility. However, investors will need to monitor whether the company can maintain growth while managing working-capital requirements associated with large infrastructure projects.

Company Profile: LCC Projects

LCC Projects is a multidisciplinary engineering, procurement and construction company promoted by Arjan Suja Rabari and Laljibhai Arjanbhai Ahir.

The company primarily undertakes irrigation and water supply projects. Its operations involve project planning, engineering, procurement, construction and execution of infrastructure works for government departments and other public-sector customers.

The company’s business is closely linked to public infrastructure spending, particularly in water management, irrigation networks and government-led development projects.

Revenue Concentration in Irrigation and Water Supply

Irrigation and water supply projects contributed 87.44 per cent of LCC Projects’ revenue in FY26. This indicates that the company has a highly concentrated business profile, with a major portion of its income dependent on one infrastructure segment.

Government departments accounted for 89.34 per cent of revenue during the same period. Such concentration provides visibility when government spending remains strong, but it also exposes the company to risks related to tender delays, payment cycles, budget allocations and changes in government priorities.

A slowdown in public infrastructure expenditure or delays in project approvals could affect revenue recognition and cash flows.

Strong Order Book Provides Revenue Visibility

As of March 31, 2026, LCC Projects had an order book of approximately ₹7,953.18 crore spread across 103 projects.

Irrigation and water supply projects represented 83.26 per cent of the order book, while government customers accounted for 79.07 per cent. The sizeable order book provides potential revenue visibility over the medium term, subject to timely execution and the availability of working capital.

The company’s ability to convert its order book into revenue will depend on land availability, project clearances, contractor mobilisation, raw-material costs, labour availability and payment schedules.

Key Business Strengths

LCC Projects operates in a segment supported by India’s long-term need for water infrastructure, irrigation development and public utility projects.

Its key business strengths include:

• Exposure to government-led irrigation and water supply projects

• A sizeable order book of approximately ₹7,953 crore

• Experience in engineering, procurement and construction activities

• A large number of ongoing projects across the infrastructure segment

• Potential benefits from public spending on water management and rural infrastructure

• Planned debt repayment through IPO proceeds

The company’s order book could support growth if projects are executed within scheduled timelines and cost estimates.

Risks for Investors

High Government Dependence

A large share of LCC Projects’ revenue and order book comes from government customers. Any delay in government payments, tender awards or project approvals could affect working capital and profitability.

Segment Concentration

The company is heavily concentrated in irrigation and water supply projects. Limited diversification may increase its exposure to changes in government spending and sector-specific risks.

Execution Risk

Infrastructure projects are vulnerable to delays caused by land acquisition, weather conditions, regulatory approvals, supply-chain disruptions and contractor-related issues.

Working-Capital Pressure

EPC companies generally require substantial working capital to execute projects before receiving milestone-based payments. Delayed collections could increase borrowing requirements and finance costs.

Margin Volatility

Changes in raw-material prices, labour costs, subcontracting expenses and project timelines may affect operating margins. Cost overruns could reduce profitability even when the order book remains strong.

Post-Listing Volatility

The stock’s strong debut may lead to increased volatility as early investors look to book profits. The share price after listing will depend on financial results, order inflows, execution progress, cash flows and broader market sentiment.

Market Outlook

LCC Projects’ listing at a premium of more than 31 per cent reflects strong investor interest in its infrastructure-focused business and sizeable order book. The company may benefit from long-term government spending on irrigation, water supply and public infrastructure.

However, its high dependence on government customers and irrigation-related projects remains an important risk factor. Investors should track order execution, receivables, debt levels, operating margins and cash-flow generation in the coming quarters.

The strong listing provides an encouraging start, but the company’s long-term market performance will depend on its ability to execute projects efficiently, convert its order book into revenue and maintain financial discipline.