Vikran Engineering Limited has announced its Initial Public Offering (IPO), which will open for subscription on August 26, 2025 and close on August 29, 2025. The company, a rapidly growing Engineering, Procurement and Construction (EPC) player, has been expanding its presence across India with a diverse portfolio ranging from infrastructure projects, power transmission, and EHV substations up to 765kV to power distribution down to the end consumer’s meter.

The company has come forward with a Book Built Issue of ₹772 crore, which consists of a Fresh Issue of 7.43 crore shares worth ₹721 crore and an Offer for Sale (OFS) of 0.52 crore shares worth ₹51 crore. The price band for the IPO has been set at ₹92 to ₹97 per equity share, and at the upper price band, the market capitalisation of Vikran Engineering stands at ₹2,501.74 crore.

The lot size of the IPO is 148 shares, requiring retail investors to make a minimum investment of ₹14,356, while High-Net-Worth Individuals (HNIs) need to apply for at least 14 lots (2,072 shares) amounting to ₹2,00,984. The issue is being managed by Pantomath Capital Advisors Private Limited and Systematix Corporate Services Limited as the book running lead managers, with Bigshare Services Private Limited acting as the registrar.

Grey Market Premium (GMP) Update

The Grey Market Premium (GMP) for Vikran Engineering IPO is currently around ₹18, indicating an expected listing price of ₹115, which is an 18.55% premium over the upper price band. However, experts caution that GMP trends are unofficial and unregulated, hence should be considered only as an indicator of market sentiment and not a guarantee of listing performance.

IPO Timeline

• IPO Opens: August 26, 2025

• IPO Closes: August 29, 2025

• Allotment Finalisation: September 1, 2025

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

How to Check IPO Allotment

Investors can check their allotment status from September 1, 2025, via the registrar’s website (Bigshare Services). They need to:

• Visit the allotment status page.

• Select Vikran Engineering IPO from the dropdown list.

• Enter application number, PAN, or DP Client ID.

• Submit details to view the allotment result.

Objectives of the Issue

The net proceeds from the IPO will be utilised for:

1. Funding working capital requirements of ₹5,410 million.

2. General corporate purposes.

Company Background and Leadership

Founded with a focus on EPC projects, Vikran Engineering has seen consistent growth under the leadership of Chairman and Managing Director, Rakesh Ashok Markhedkar, who brings over 34 years of EPC sector experience. His son, Avinash Ashok Markhedkar, has 33 years of experience and has been on the board since 2015, while Nakul Markhedkar, Whole-Time Director, contributes with his 9 years of expertise. The senior management team (SMT) consists of highly experienced professionals who drive the company’s strategic growth.

Financial Performance

The financials of Vikran Engineering show steady growth in revenues and profits:

• Revenue from Operations:

  • FY 2025: ₹9,223.64 million

  • FY 2024: ₹7,914.37 million

  • FY 2023: ₹5,291.79 million

• EBITDA:

  • FY 2025: ₹1,667.52 million

  • FY 2024: ₹1,387.84 million

  • FY 2023: ₹858.92 million

• Profit After Tax (PAT):

  • FY 2025: ₹778.19 million

  • FY 2024: ₹748.31 million

  • FY 2023: ₹428.40 million

This steady rise indicates healthy financial growth, making the IPO an attractive proposition.

Valuation and Ratios

• Pre-Issue EPS: ₹4.35

• Post-Issue EPS: ₹3.02

• Pre-Issue P/E Ratio: 22.30x

• Post-Issue P/E Ratio: 32.15x

• Industry P/E Ratio: 35x

• ROCE (FY24): 23.34%

• ROE (FY24): 16.63%

The valuation suggests the IPO is fairly priced compared to peers, though the post-issue P/E is slightly higher.

Expert Review and Recommendations

Analysts believe the IPO is suitable for risk-taking investors, especially those looking for listing gains, given the GMP trend of around ₹18 premium. However, long-term investors should carefully analyse the EPC sector’s cyclic nature, working capital challenges, and debt structure before making commitments.

In summary, Vikran Engineering IPO presents a strong opportunity for investors seeking short-term listing gains and exposure to a fast-growing EPC company. With robust financials, experienced leadership, and a fair valuation, it has garnered considerable attention in the market.

The Upcoming IPOs in this week and coming weeks are Abril Paper Tech, Sneha Organics, Sugs Lloyd, Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering.

The Current active IPO are Shivashrit Foods, Anondita Medicare, Classic Electrodes (India), ARC Insulation & Insulators, Mangal Electrical Industries, .

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