Vikran Engineering Limited IPO has opened for subscription from August 26, 2025 and will close on August 29, 2025. The IPO is a Book Built Issue of ₹772 crore, consisting of a Fresh Issue of 7.43 crore equity shares worth ₹721 crore and an Offer for Sale (OFS) of 0.52 crore shares totaling ₹51 crore. The allotment is expected on September 1, 2025, with shares likely to list on BSE and NSE on September 3, 2025.

The price band for the IPO has been fixed at ₹92 to ₹97 per share, with a lot size of 148 shares. Retail investors need a minimum investment of ₹14,356, while HNIs must invest at least ₹2,00,984 for 14 lots. At the upper band of ₹97 per share, Vikran Engineering’s market capitalisation will stand at ₹2,501.74 crore.

Company Overview

Vikran Engineering is among India’s fastest-growing EPC companies, with expertise in infrastructure projects, power transmission, and EHV substations up to 765kV. The company also specializes in power distribution projects, from 33/11kV substations to consumer meter connections.

It has built a strong reputation under the leadership of its promoters:

• Rakesh Ashok Markhedkar, Chairman and MD with 34 years of EPC experience

• Avinash Ashok Markhedkar, Director with 33 years of experience

• Nakul Markhedkar, Whole-Time Director with 9 years of experience

Their senior management team combines decades of industry expertise, enabling the company to expand aggressively in the EPC sector.

Financial Performance

The financials show consistent growth over the past three years:

• Revenue from operations: ₹9,223.64 million (FY25), ₹7,914.37 million (FY24), ₹5,291.79 million (FY23)

• EBITDA: ₹1,667.52 million (FY25), ₹1,387.84 million (FY24), ₹858.92 million (FY23)

• Profit after Tax (PAT): ₹778.19 million (FY25), ₹748.31 million (FY24), ₹428.40 million (FY23)

The company’s ROCE stands at 23.34%, ROE at 16.63%, and RoNW at 16.63% for FY24. Its pre-issue EPS is ₹4.35 and post-issue EPS ₹3.02, giving a P/E ratio of 22.30x pre-issue and 32.15x post-issue, compared to an industry P/E of 35x. This suggests the IPO is fairly priced.

Grey Market Premium (GMP)

As of August 21, 2025, the Grey Market Premium (GMP) of Vikran Engineering IPO stands at ₹18, indicating an 18.55% expected listing gain. This puts the expected listing price at ₹115 per share against the IPO price of ₹97. However, experts caution that GMP is unofficial and speculative, influenced by demand and supply in the grey market.

Subscription Status

On the first day of subscription (Aug 26, 2025, 12:30 PM), the IPO was subscribed 0.46 times. Investors can check the real-time subscription status on BSE throughout the IPO window.

Anchor Investors

Vikran Engineering successfully raised ₹231.60 crore from Anchor Investors at the upper price band of ₹97 per share. The company allotted 2,38,76,287 equity shares to these institutional investors, strengthening confidence in the IPO.

IPO Objectives

The net proceeds from the IPO will be used for:

1. ₹5,410 million for working capital requirements of the company

2. General corporate purposes

Allotment and Listing Details

• IPO Open Date: August 26, 2025

• IPO Close Date: August 29, 2025

• Allotment Date: September 1, 2025

• Listing Date: September 3, 2025 (BSE & NSE)

Investors can check allotment status on the registrar’s website (Bigshare Services Pvt Ltd) by entering PAN, DP ID, or Application number once allotment is announced.

Expert Review

Given strong financial performance, sectoral growth opportunities, and a GMP showing 18% expected listing gains, the Vikran Engineering IPO looks attractive for listing gains. However, with a relatively high post-issue P/E ratio of 32.15x, experts suggest it may suit risk-taking investors looking for short-term gains, while long-term investors should evaluate fundamentals carefully.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, Abril Paper Tech, Sneha Organics, Sugs Lloyd, .

The Current active IPO are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, Shivashrit Foods, Anondita Medicare, Classic Electrodes (India).

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