LCC Projects Ltd. IPO

LCC Projects

• LCC Projects is coming out with a 100% book building; initial public offering (IPO) of 3,01,46,151 shares of face value Rs 5 each in a price band Rs 139-146 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 09, 2026 and will close on September 11, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 5 and is priced 27.80 times of its face value on the lower side and 29.20 times on the higher side.
• Book running lead manager to the issue is Motilal Oswal Investment Advisors.
• Compliance officer for the issue is Gayatri Desai. 

Profile of the company

LCC Projects is a multidisciplinary engineering, procurement and construction (EPC) company in the irrigation and water supply projects segment from Gujarat. The company is a multidisciplinary large corporate EPC company from Gujarat, poised to undertake infrastructure projects across 12 states in India. Over a period of two decades (including projects undertaken through the partnership firm prior to conversion to the company), it has executed a wide range of projects in the irrigation and water supply segment such as construction of dams, barrages, weirs, hydraulic structures, canals, pipe distribution networks, lift irrigation works, water supply schemes, and other EPC projects. Additionally, it has executed a project related to the construction of metro rail project including construction of station along with its approaches and viaducts and are in the process of executing a mining development and operations (MDO) project.

Further, it has established a manufacturing unit, strategically located in Jaspur, Gujarat, for the production of precast concrete solutions for the infrastructure and construction industries. This unit has been set up to manufacture precast concrete elements, which are cast and cured in a controlled factory environment before being transported to construction sites for installation.

The company has experience of executing projects across diverse geographic locations in India. For instance, it has diversified its geographical presence in the construction and development and execution of projects in various states of India, such as Madhya Pradesh, Gujarat, Odisha, Maharashtra, Chhattisgarh, Jharkhand, Uttar Pradesh, Haryana, Himachal Pradesh, Rajasthan, Andhra Pradesh, and Karnataka. It has undertaken projects with different levels of complexities in relation to project execution such as managing water flow dynamics, ensuring structural stability, mitigating geographical challenges like uneven terrain and soil conditions, construction in hilly terrain slope protection and rock fall protection due to high rainfall.

Proceed is being used for: 

• Purchasing equipment
• Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

Agriculture and allied activities form an integral part of the Indian economy and currently, around 18% of India’s Gross Value Added (GVA) is contributed by this sector. India, possessing around 4% of the world’s water resources supports a population of 1.4 billion. Limited water resources for agricultural activities, coupled with erratic monsoons and change in weather patterns, intensifies the need for efficient irrigation practices so as to ensure reduction of water stress in the country. Furthermore, this has resulted in irrigation systems becoming critical in maximizing agricultural output and ensuring food security for the nation. The disparity between availability of water and the actual demand for it necessitates innovation and sustainable management practices in the agricultural sector.

The agricultural sector of India employs an estimated around 45% of India’s workforce and comprises an estimated around 15% of India’s GVA, making itself pivotal to the economy. However, traditional farming methods often yield less efficiency and productivity. This led the Government of India (GoI) to bring about the fourth agricultural revolution known as Agriculture 4.0. This initiative aims to improve yield quality and precision, while minimizing environmental damage, leading to more efficient and sustainable farming methods. Despite recent global headwinds, the sector has shown resilience and has even been a driving force to boost the economy forward. During the First Five Year Plan, India had 74 major and 143 medium irrigation projects. This number increased significantly with the government taking up 406 major, 1135 medium and 259 ERM schemes during FY1951 to FY2012 (end of XI Plan). 231 major, 880 medium and 122 ERM projects have been recorded as completed by end of XI Plan.

The irrigation sector forms the backbone of India’s agricultural landscape, playing a crucial role in ensuring food security, improving climate resilience, and stabilising farm incomes. Strengthening this sector through the development of robust infrastructure, modernisation of irrigation systems, and the promotion of sustainable water management is essential to enhance productivity. To achieve this, the Government of India has introduced several targeted programmes and schemes that encourage the adoption of water-efficient irrigation practices. The flagship scheme, Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), has been central to this effort by improving irrigation coverage, promoting innovative techniques, and providing financial support for sustainable practices. Within this framework, the Per Drop More Crop (PDMC) initiative, which has been implemented under the Rashtriya Krishi Vikas Yojana (RKVY) since 2022–23, focuses on strengthening and incentivising micro-irrigation projects. Together, these initiatives aim to expand cultivable areas with reliable water access, enhance water use efficiency, and modernise irrigation methods, ultimately making farming more sustainable and resilient. 

Pros and strengths 

Multidisciplinary EPC company in India for irrigation and water supply projects: The company is a multidisciplinary EPC company in India. It focuses on complex projects and has a strong track record in successful project management, execution and timely completion of irrigation and water supply projects across India, with a majority of its projects being executed ahead of or on schedule.  As of March 31, 2026, the company has a track record of completing 80 projects for various Government departments and other customers. Its track record showcases its ability to capitalize on its design and engineering capabilities, execution expertise, and effective internal systems. Its skilled workforce, supported by an execution-driven culture, is as an integral factor of its success. Further, its ability to leverage its experience in executing projects across India provides it with a significant advantage in project execution and timely delivery. By consistently demonstrating its ability to handle large-scale projects and leveraging its project management and execution capabilities, it is well-positioned to pursue new opportunities across geographies.

Strong order book and diversified project portfolio: In the industry in which it operates, an Order Book holds significant importance as it represents the estimated contract value of the unexecuted portion of a company’s existing projects and provides visibility on possible future revenues. Its order book has grown from Rs 62,689.68 million as of March 31, 2024, and to Rs 78,821.71 million as of March 31, 2025 to Rs 79,531.81 million as of March 31, 2026. Its order book is diversified across business verticals. Albeit irrigation and water supply projects form the largest part of its Order Book, it has different components which ensure that its Order Book continues to remain diversified. In an industry which requires significant working capital management, managing large equipment and materials along with manpower resources, it is vital for it to be selective and careful while expanding its business. The consistent growth in its Order Book is a result of its extensive experience, its commitment to maintaining quality standards and its project execution skills. The growth in its Order Book has also contributed to its strong financial performance. Further, its financial strength also enables it to access additional bank financing, which in turn, will enable it to bid for additional projects which will help it builds a strong order book.

In-house project designing capabilities with robust technical knowledge: It has qualified in-house teams who are responsible for different aspects of its projects starting from identifying prospective projects to the operation and maintenance of the projects. It is able to undertake a significant number of activities related to the projects in-house, thereby ensuring timely completion of its projects, reducing its reliance on third parties and decreasing its costs. Its integrated structure also allows it to control its budget and maximize returns for the project, including the operation and maintenance margins. The company has an in-house design and engineering team comprising 698 qualified engineers and technical personnel as on July 31, 2026. The average work experience of its design team members is over five years. The company is also focused on ensuring that each project is executed in conformity with the work description provided in the contracts and adheres to the quality and standard of construction associated with the company.

Strong risk management, project selection and dispute resolution processes: It recognizes the inherent risks prevalent in the infrastructure sector and have set up a risk management system that assists in identifying, measuring and monitoring the various risks that may arise in its operations. Its project selection process focusses on finding and winning projects in which it expects to have steady cash flows through periodic payments, which it expects will allow it to stay cash flow positive throughout the project lifecycle. It has a team of experienced Senior Management within the company that is responsible for analysing and evaluating all proposed new bids and investments. Their assessment includes a review of various aspects, including credit risk, market risk, and operational risk associated with such bids or capital expenditures. its risk management processes span the entire project lifecycle. At the pre-tendering stage, the risks that it evaluates include customers risk, project risk and joint venture risk. The teams involved in analysing these risks include business development executives, the tendering team and the strategy team. At the tendering stage, detailed analysis is done towards scope of work, construction method, estimates of construction materials and equipment. age, detailed analysis is done towards scope of work, construction method, estimates of construction materials and equipment. This analysis is prepared by the techno commercial team along with the risk management team and shared with the business unit head along with a risk pricing plan and a risk mitigation plan.

Risks and concerns

Significant dependence on top ten customers, primarily state and central government departments: The company derives a significant portion of its revenue from operations from its top ten customers which are primarily state and central government departments and thus it is majorly dependent on these state and central government departments. Revenue from its top ten customers comprise a significant portion of its revenue from operations i.e. 72.30% for Fiscal 2026, 84.10% for the Fiscal 2025, and 82.76% for the Fiscal 2024. Any failure to maintain its relationship with these customers, any adverse changes affecting their financial condition or the loss of any of its customers will have an adverse effect on its business, results of operations, financial condition and cash flows.

Geographical concentration in Gujarat and Madhya Pradesh: Its operations are geographically concentrated in the states of Gujarat and Madhya Pradesh. Its revenue from operations from Gujarat accounted for 39.64%, 35.52% and 10.97% in Fiscals 2026, 2025 and 2024, respectively. Its revenue from operations from Madhya Pradesh accounted for 36.58%, 45.41% and 66.03% in Fiscals 2026, 2025 and 2024, respectively. This concentration of its projects in the states of Gujarat and Madhya Pradesh heightens its exposure to adverse developments related to regulatory, political, as well as economic, demographic and other changes in the respective states of as well as the occurrence of natural and man-made disasters, which may adversely affect business, results of operations and financial condition in the respective states.

High dependence on Jal Jeevan Mission for order book: A significant portion of its order book is derived from Jal Jeevan Mission projects. For Fiscal 2026, projects under the Jal Jeevan Mission constituted 19.54% of its total Order Book, amounting to Rs 15,550.07 million. Further, for Fiscals 2025, and 2024, projects awarded under the Jal Jeevan Mission constituted Rs 20,411.49 million, and Rs 28,053.98 million of its total order book, amounting to 25.90%, and 44.75% respectively. Any adverse changes in policy, funding, or implementation of this mission could lead to delays, cancellations, or reduced opportunities, which may negatively impact its business, results of operations, and financial condition. Further, its dependency on the Jal Jeevan Mission exposes it to concentration risks both in terms of geography and customer profile. A decline in the scale of the scheme or reduced participation by states could materially impact its revenues, cash flows and overall financial performance.

Dependence on customers for land acquisition and statutory clearances: Its infrastructure projects, particularly those related to irrigation and water supply, often require significant land acquisition and may impact local communities, which can lead to resistance and opposition. The construction and operation of its projects may face opposition from local communities and special interest groups, which can result in delays or disruptions. Key challenges include delays in the acquisition of private land, securing rights of way, eviction of encroachments, and obtaining environmental clearances, which are typically the responsibility of its customers. A failure by its customers to acquire the necessary land free of encumbrances and on time can cause significant project delays, cost overruns, or even force it to alter or abandon projects altogether. Any significant delays in the completion of its projects on account of the aforementioned factors could lead to the termination of its contracts, cost overruns, or claims for damages, which could have an adverse effect on its cash flows, business, results of operations, and financial condition. Furthermore, these issues can lead to disputes and crossclaims for liquidated damages between it and its customers.

Outlook

LCC Projects is engaged in the business of designing, construction, and operation and maintenance of roads and highways, bridges, irrigation and mining projects, construction of commercial buildings, and other ancillary services like toll collection, operation and maintenance of highways. This includes Water and Wastewater Treatment Plants (WWTPs). WWTPs include Sewage Treatment Plants (STPs), Common Effluent Treatment Plants (CETPs), along with Sewerage Networks, Water Treatment Plants (WTPs) and Water Supply Scheme Projects (WSSPs). On the concern side, its business significantly depends on its ability to successfully bid for and acquire projects in the irrigation and water supply projects segment. In the Fiscals 2026, 2025, and 2024, its bid success rate was 13.53%, 21.35%, and 22.89%, respectively. Its inability to successfully bid for and acquire new projects in the irrigation and water supply projects segment could have an adverse effect on the growth of its business.

The issue has been offering 3,01,46,151 shares in a price band of Rs 139-146 per equity share. The aggregate size of the offer is around Rs 419.03 crore to Rs 440.13 crore based on lower and upper price band respectively. Minimum application is to be made for 102 shares and in multiples thereof thereafter. On performance front, its total income increased by 23.75% to Rs 36,394.54 million for Fiscal 2026 from Rs 29,410.13 million for Fiscal 2025. Its profit after tax increased by 28.09% to Rs 2,864.41 million for Fiscal 2026 from Rs 2,236.25 million for Fiscal 2025.

Meanwhile, it intends to further develop its long-standing customer relationships by continuing its focus on quality in delivery and execution. Through client interaction, real-time reporting implemented under its stakeholder communication system, its project management teams closely monitor client satisfaction and are responsive to their evolving needs. The company possesses a track record of timely project completion through competent and experienced project management teams and active promoter engagement. In line with the same, completing its customers’ projects in a timely manner whilst upholding the high standards of quality, is the most effective manner in which it can develop and maintain strong relationships with its customers.

Hero Motors

• Hero Motors is coming out with a 100% book building; initial public offering (IPO) of 12,65,82,278 shares of face value Rs 10 each in a price band Rs 79-84 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 16, 2026 and will close on September 18, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 10 and is priced 7.90 times of its face value on the lower side and 8.40 times on the higher side.
• Book running lead managers to the issue are ICICI Securities, DAM Capital Advisors and JM Financial.
• Compliance officer for the issue is Sakshi Dureja. 

Profile of the company

Hero Motors is one of India’s leading automotive technology companies engaged in designing, developing, manufacturing and supplying highly engineered powertrain solutions catering to automotive original equipment manufacturers (OEMs) in United States, Europe, India and the Association of Southeast Asian Nations (ASEAN) region. The company is a fully integrated powertrain systems provider offering comprehensive solutions including services for designing, prototyping, validating, developing, and delivering system-level and component-level powertrain solutions for both electric as well as non-electric powertrains. The company’s offerings find application in two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy duty vehicles, and electric vertical take-off and landing (eVTOL) categories.

The company is among the few companies that address the requirements of the premium ICE and performance ICE segment that require high-performance transmission systems capable of handling tough torque needs while keeping components lightweight. The company is a technology and innovation driven company and have made significant investments into its in-house design and engineering capabilities as well as forging technology partnerships with global players to enhance its expertise and product and service offerings.

The company is recognized for its leadership in the development and production of continuously variable transmissions (CVT), electric vehicle (EV) transmission, electric motors, integrated drive units and gear sets. The company is among the first companies in India to capitalize on the global e-bike powertrain opportunity and have a distinct first mover advantage in this industry. It is the only player manufacturing and exporting CVT hubs to global e-bike OEMs from India, and are the only manufacturer of integrated electric powertrain products for e-bikes in India.

Proceed is being used for: 

• Repayment/prepayment/redemption, in full or in part, of certain outstanding borrowings availed by the company
• Capital expenditure of the company through purchase of equipment required for expansion in capacity of its Gautam Buddha Nagar, Uttar Pradesh facility
• Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes

Industry overview

The country's automobile industry is primarily comprised of five key segments: two-wheelers (2W), passenger vehicles (PV), commercial vehicles (CV), three-wheelers (3W), and tractors. During fiscal 2026, with a significant lead, two-wheelers emerged as the largest segment, accounting for 74.1% of the total auto industry by volume. Passenger vehicles followed, contributing 15.6% to the market share, while three-wheelers make up a smaller but notable 2.9% of vehicle sales in fiscal 2026. Fiscal 2026 recorded sales of 22.1 million units, supported by GST cuts in September 2025 along with continued rural market momentum with improved rural productivity, diversification towards horticultural crops, government income support schemes and structural measures taken by the government such as PM-KISAN, eNAM, Pradhan Mantri Fasal Bima Yojna (PMFBY) to name a few, aided rural income.

In fiscal 2026 the share of scooters increased to 38% from 36% during the same period last year. This upward trend can be attributed to several other factors, including the rising participation of women in the workforce and a growing preference for automatic transmission vehicles. Within the scooters segment, e-scooters witnessed growth at an accelerated pace and contributed a sizeable share of 16 to 17% to overall scooter sales in fiscal 2026. Launch of new models, government incentives, rising awareness, increased acquisition & operating costs for the ICE equivalents provided a boost to the EV sales during the fiscal 2021 to 2026 period. E-scooters clocked growth at 101% CAGR in the last 5 years and their penetration within the scooters segment rose from 1.0% in fiscal 2021 to 16 to 17% in fiscal 2026. On the other hand, the ICE scooter segment witnessed relatively slower growth amidst the increased vehicle prices (due to BS VI emission norms compliance), higher operating costs (fuel price hike), increased interest outgo as well as increased competition from EVs. During fiscal 2022 to fiscal 2026 period, ICE scooter sales grew at 9.8% CAGR.

In the overall domestic sales, motorcycles have maintained their leading position in the last 5 years, however, they lost some ground to scooters during the period. During the pandemic period of fiscal 2021 and fiscal 2022, amidst the lack of availability of public transportation, requirement of motorcycles continued especially for daily commute, thereby restricting their drop. Over the years, there has been a significant advancement in vehicle technology. Various new features have been added in internal combustion engines (ICE) and electric vehicles (EV), making them more appealing to the customers, especially the younger buyers. The EV segment has revolutionised the industry in terms of latest technological designs and offerings and ICE vehicles are following with notable advancements. During fiscal 2022 to 2026, ICE segment grew at a moderate 11.3% CAGR. However, EV retails grew with 54.4% CAGR for the same period. For fiscal 2026, EV penetration reached around 6.5% and EV volumes recorded 1.44 million units. Going forward, the industry is expected to continue its growth momentum over the long-term horizon led by the positive microeconomic and macroeconomic environment, favourable rural demand, premiumization, intermittent launches, shrinking replacement cycle and continued support from financers.

Pros and strengths 

Strong positioning in global E-Mobility market: The company is one of India’s leading solutions providers to global e-mobility industry with its revenue from sales to e-mobility industry being Rs 2,732.90 million, Rs 1,755.92 million and Rs 1,280.85 million, accounting for 23.00%, 16.12% and 12.03%, respectively of its revenue from operations for Fiscal 2026, 2025 and 2024, respectively. Precision and powertrain flexibility characterize its offerings, positioning it to leverage global trends. The company has supplied EV transmission components for a US-based EV OEM and a European EV supercar manufacturer, showcasing its expertise in this segment. It is among the few companies globally that design high-performance transmission systems capable of handling tough torque needs while keeping components lightweight and meeting noise, vibration and harshness (NVH) requirements of electric vehicles.

Growing presence across premium mobility segments: Over the last five years, the company has expanded its market presence across automotive segments and have grown its business with premium two-wheeler OEMs globally. In the premium two-wheeler segment, it has partnered with OEMs such as BMW, Ducati and a leading American two-wheeler OEM among others, for Powertrain Solutions covering design, development, prototyping, validation and high-volume manufacturing. Further, the company has capabilities to deliver complete system solutions for e-bikes, including design, development, and cost-effective solutions, all while maintaining stringent quality standards. The electrification of bicycles and two-wheelers is witnessing robust global growth, driven by environmental concerns, health awareness, and technological advancements.

Diversified and premium customer portfolio: The company has a diverse and premium customer base, serving clients both in India and internationally. Its global OEM portfolio includes a wide range of customers, spanning both automotive and non-automotive sectors. In the automotive sector, it collaborates with global two-wheeler OEMs including BMW, Ducati, and Hero MotoCorp; players from motor sport industries such as Formula Motorsport and HWA Engineering; global commercial vehicle and off-road OEMs such as Escorts; and enviolo. The company’s customers in the non-automotive segment for both electric and non-electric powertrain and transmission systems include global OEMs such as B&S, and various e-powertrain applications for supercar manufacturers.

Strong global manufacturing and precision engineering capabilities: The company’s operational strength extends worldwide as it strategically establishes manufacturing and assembly facilities to meet diverse market and customer demands. Strategic geographic dispersion of its G&T facilities across India, the United Kingdom, and Thailand allows it to be in close proximity to its customers and offer cost competitive solutions. The company’s facilities, located in Gautam Buddha Nagar, Uttar Pradesh, India, boast precision manufacturing setups, including advanced technologies such as teeth honing, teeth grinding, and laser welding machines. The infrastructure is modern, and its processes are well-developed, allowing it to manufacture precise EV gears. 

Risks and concerns

High revenue concentration among top customers: The company’s business largely depends upon its top 10 customers. In Fiscals 2026, 2025 and 2024 its revenue from operations from top 10 customers were Rs 8,661.40 million, Rs 8,501.96 million and Rs 8,191.86 million, representing 72.89%, 78.03% and 76.96% of its revenue from operations, respectively. The loss of any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.

Geographic concentration in European markets: The company generates a portion of its revenue from operations from jurisdictions outside India, in particular, from Europe which contributed 33.59%, 28.45% and 29.33%, of its revenue from operations, in Fiscal 2026, 2025 and 2024, respectively. Any adverse events affecting these jurisdictions could have an adverse impact on its revenue from operations.

Significant capital expenditure and working capital needs: The company has substantial capital expenditure and working capital requirements and may require additional capital and financing in the future and its operations could be curtailed if it is unable to obtain the required additional capital and financing when needed.

Exposure to risks associated with UK subsidiary: The company derives a portion of its revenue from operations from its Material Subsidiary; HEL located in the United Kingdom. The company acquired 32% equity stake in HEL in September 2022 from Hero International B.V., a member of the Promoter Group, which had been associated with HEL since 2017, and it acquired a majority stake by acquiring 19% equity stake in February 2023. HEL specialises in transmission design technology and has an established motorsport customer base. In the event there is any adverse impact on the business operations of HEL, its business, results of operations, cash flows and financial condition may be adversely affected.

Outlook

Hero Motors Limited is an automotive technology company engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the United States, Europe, India and ASEAN region. The company provides integrated solutions for both electric and non-electric powertrains, serving two-wheelers, performance automotive, e-bikes, off-road vehicles, electric and hybrid cars, heavy-duty vehicles and eVTOL applications. The company has strong R&D and engineering capabilities. It has diversified powertrain product and service offerings. On the concern side, the company derives a certain portion of its revenue from operations from its Material Subsidiary, Hewland Engineering Limited (HEL). In the event there is any adverse impact on the business operations of HEL, its business, results of operations, cash flows and financial condition may be adversely affected. Moreover, certain of its Subsidiaries have suffered losses in the last three Fiscals. There can be no assurance that its subsidiaries will be profitable in future, or that it will be able to benefit from the funds it has infused in them.

The issue has been offering 12,65,82,278 shares in a price band of Rs 79-84 per equity share. The aggregate size of the offer is around Rs 1000.00 crore to Rs 1063.29 crore based on lower and upper price band respectively. Minimum application is to be made for 178 shares and in multiples thereof thereafter. On performance front, the company’s revenue from operations increased by 9.06% from Rs 10,895.93 million in Fiscal 2025 to Rs 11,883.51 million in Fiscal 2026, primarily on account of an increase in offtake from certain Indian and international customers. Moreover, profit for the year increased to Rs 411.68 million in Fiscal 2026 compared to Rs 327.96 million in Fiscal 2025.

Meanwhile, the company’s strategic objective is to further increase the collective contribution from systems and e-mobility-related products and services. To achieve this goal, it is currently implementing a series of initiatives. It is focused on making further investments in its technology centers and developing full powertrain solutions tailored for EVs. EVs require an integrated transmission system to optimize their performance, efficiency, and driving experience. The company has invested with the setup of its technology centers and are fully equipped to delivering end-to-end powertrain solutions. With the aim to expand its capabilities in terms of assembling systems and gain expertise to be prepared for the e-mobility products, it acquired strategic stake in Hewland in 2022 and acquired majority stake in 2023 from Hero International B.V which had been associated with Hewland since 2017. The company intends to further leverage Hewland’s expertise to launch customizable solutions for EV OEM.