The Vikran Engineering IPO made its market debut on September 3, 2025, listing at ₹100 per share on both the BSE and NSE, reflecting a nearly 3% premium over its upper price band of ₹97 per share. The IPO was highly anticipated in the infrastructure and EPC sector due to the company’s rapid growth trajectory, strong financial performance, and large order book.

IPO Details and Market Debut

The Vikran Engineering IPO was a Book Built Issue of ₹772 crore, consisting of:

• A Fresh Issue of 7.43 crore shares worth ₹721 crore

• An Offer for Sale (OFS) of 0.52 crore shares worth ₹51 crore

The IPO opened for subscription on August 26, 2025, and closed on August 29, 2025. The price band was fixed at ₹92–₹97 per share with a lot size of 148 shares. For retail investors, the minimum investment was ₹14,356, while High-Net-Worth Individuals (HNIs) were required to apply for a minimum of 14 lots (₹2,00,984).

At the upper band of ₹97, the company’s market capitalization at IPO stood at ₹2,501.74 crore.

Upon listing, shares opened at ₹100, giving investors modest but positive listing gains amid a volatile IPO market.

IPO Subscription Status

The issue witnessed strong investor participation, closing with an overall subscription of 10.28 times on its final day. Institutional, retail, and non-institutional investors all showed healthy demand, indicating strong market confidence in the EPC company’s growth story.

Grey Market Premium (GMP) Trend

In the grey market, the IPO commanded a premium of ₹18, indicating an 18.55% expected gain before listing. However, the actual listing at just a 3% premium showed tempered enthusiasm compared to early grey market expectations.

(Note: GMP is unofficial, depends on demand/supply, and not an accurate price discovery mechanism.)

Anchor Investors

Ahead of the IPO, Vikran Engineering raised ₹231.60 crore from anchor investors by allocating 2,38,76,287 shares at ₹97 per share. The anchor investor participation added credibility and boosted investor sentiment.

Allotment Status

The IPO allotment was finalized on September 1, 2025, and investors can check their status on the registrar Bigshare Services Private Limited’s website using:

• PAN Number

• Application Number

• DP/Client ID

Objectives of the IPO

The company plans to utilize the net proceeds as follows:

1. ₹5,410 million for funding working capital requirements.

2. General corporate purposes.

Business Overview of Vikran Engineering Limited

Vikran Engineering is a fast-growing EPC company with expertise in power transmission, power distribution, water infrastructure, and railway electrification projects. The company provides end-to-end turnkey services covering conceptualisation, design, procurement, construction, and commissioning.

Key Highlights:

• Reported revenue growth at a CAGR of 32.17%, rising from ₹5,243.05 million (FY23) to ₹9,158.47 million (FY25).

• PAT grew at a CAGR of 34.78%, from ₹428.40 million in FY23 to ₹778.19 million in FY25.

• Highest operating EBITDA margin of 17.50% in FY25 among its peer group.

• Executed 45 projects across 14 states with contract value of ₹19,199.17 million.

• Currently executing 44 projects across 16 states, with an order book of ₹51,202.07 million.

Infrastructure Verticals

• Power Transmission & Distribution: EPC projects up to 765 kV transmission lines and substations.

• Water Infrastructure: Projects under Jal Jeevan Mission and AMRUT covering underground pipelines, treatment plants, and reservoirs.

• Railway Infrastructure: Railway electrification, traction substations, and underground EHV cabling.

• Solar EPC: Ground-mounted solar plants and smart metering projects.

Industry Outlook

The EPC sector in India is poised for strong growth, supported by:

• National Infrastructure Pipeline (NIP) and PM Gati Shakti programs.

• Massive investments in power transmission, renewable energy, smart metering, and water supply projects.

• Expected investments of ₹29–30 trillion in India’s power sector between FY26–FY30, with 70% earmarked for renewable energy.

Business Strengths

1. Strong growth trajectory with revenue CAGR of 32.17% (FY23–FY25).

2. Diversified order book across power, water, and railway infrastructure.

3. Pan-India presence with execution in 22 states.

4. Asset-light business model enabling efficient capital use.

5. In-house technical expertise ensuring timely and quality project delivery.

6. Experienced leadership with proven execution capabilities.

Business Strategies

• Strengthening presence in power transmission, water, and railways.

• Expanding geographically and exploring Africa & Middle East markets.

• Diversifying into solar EPC and metro infrastructure.

• Leveraging government schemes like RDSS, Jal Jeevan Mission, and Smart Cities projects.

Risks & Concerns

• Dependence on government tenders (61.73% of FY25 revenue).

• Ban by Indian Railways (2024) for 2 years due to integrity issues, posing reputational risks.

• High competition in the EPC bidding process.

• Sector concentration risk in power & water infrastructure.

• Joint venture risks in large-scale projects.

Conclusion

The Vikran Engineering IPO listing at a 3% premium gave modest gains to investors. While GMP expectations were higher, the final listing reflected a cautious market response.

With a strong financial track record, diversified projects, and a robust order book of over ₹51,000 million, the company is well-positioned for long-term growth. However, risks such as government dependency, regulatory scrutiny, and sector concentration need to be factored in by investors before making long-term bets.

The Upcoming IPOs in this week and coming weeks are Taurian MPS, Jay Ambe Supermarkets, Krupalu Metals, Urban Company, Shringar House of Mangalsutra, Vashishtha Luxury Fashion, Karbonsteel Engineering, Sharvaya Metals, Vigor Plast India.

The Current active IPO are Austere Systems, Optivalue Tek Consulting, Goel Construction Company, Amanta Healthcare, Rachit Prints.

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