The Vikran Engineering Limited IPO has officially opened for subscription, marking a major step for one of India’s fast-growing Engineering, Procurement, and Construction (EPC) companies. The issue size stands at ₹772 crore, structured as a combination of a Fresh Issue worth ₹721 crore through 7.43 crore equity shares and an Offer for Sale (OFS) of 0.52 crore shares amounting to ₹51 crore. This IPO has attracted significant attention from investors across categories, as it reflects the company’s growth potential in India’s infrastructure sector.

IPO Timeline and Subscription Window

The subscription period for the Vikran Engineering IPO runs from August 26, 2025 to August 29, 2025. The basis of allotment is expected to be finalized by September 1, 2025, and the tentative listing date is set for September 3, 2025 on both BSE and NSE. Investors are keenly tracking the live subscription status, which showed that as of 12:30 PM on August 26, 2025, the IPO was subscribed 0.46 times on its opening day.

Price Band, Lot Size, and Investment Details

The IPO has been priced with a price band of ₹92 to ₹97 per equity share. At the upper end of this band, the company’s market capitalization is projected to reach approximately ₹2,501.74 crore. The lot size for the IPO is fixed at 148 shares, requiring retail investors to invest a minimum of ₹14,356. For High-Net-Worth Individuals (HNIs), the minimum application is 14 lots (2,072 shares), which amounts to ₹2,00,984.

Anchor Investors and Institutional Participation

Ahead of the public subscription, Anchor Investors subscribed heavily to the IPO. Vikran Engineering successfully raised ₹231.60 crore from anchor investors at the upper price band of ₹97 per share. A total of 2,38,76,287 equity shares were allotted under this category, highlighting strong institutional confidence in the company. These shares have been allocated from the Qualified Institutional Buyers (QIBs) quota, reducing the available portion for other QIB investors during the IPO.

Grey Market Premium (GMP) and Listing Expectations

The Grey Market Premium (GMP) for the Vikran Engineering IPO is currently trending at ₹18, which translates into an expected listing price of around ₹115 per share. This represents a potential premium of approximately 18.55% over the issue price. While GMP trends offer a rough indicator of listing expectations, investors are reminded that the grey market is unofficial and unregulated, and price discovery truly occurs only upon listing at the exchanges.

Company Overview and Business Strengths

Vikran Engineering Limited has built a reputation as a fast-growing EPC company, executing large-scale infrastructure projects across India. The company’s services span power transmission, EHV substations up to 765kV, and power distribution systems, covering every stage from substation development to consumer connections.

The company is led by an experienced management team:

• Rakesh Ashok Markhedkar (Chairman & MD) with 34 years of experience in the EPC sector.

• Avinash Ashok Markhedkar (Director) with over 33 years of industry expertise.

• Nakul Markhedkar (Whole-Time Director) with over 9 years of hands-on experience.

Their leadership, combined with a strong team of professionals across finance, project execution, and engineering, has helped the company grow rapidly.

Financial Performance

Vikran Engineering’s financial performance highlights a strong growth trajectory:

• Revenue from operations was ₹9,223.64 million in FY25, ₹7,914.37 million in FY24, and ₹5,291.79 million in FY23.

• EBITDA stood at ₹1,667.52 million in FY25, ₹1,387.84 million in FY24, and ₹858.92 million in FY23.

• Profit After Tax (PAT) recorded ₹778.19 million in FY25, ₹748.31 million in FY24, and ₹428.40 million in FY23.

These numbers showcase steady year-on-year growth. The company also posted a Return on Capital Employed (ROCE) of 23.34%, Return on Equity (ROE) of 16.63%, and post-issue P/E ratio of 32.15x, compared to an industry average of 35x. This suggests the IPO is reasonably valued.

Objectives of the IPO

The net proceeds from the IPO will be used primarily for two purposes:

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

2. General corporate purposes, including strengthening the balance sheet and supporting expansion initiatives.

IPO Allotment Process for Investors

The allotment date for Vikran Engineering IPO is September 1, 2025. Investors can check their allotment status online through the registrar’s portal, using details such as:

• Application Number

• PAN Number

• DP/Client ID

This will allow investors to quickly verify whether they have received allotment of shares.

Investor Sentiment and Expert Review

Market experts have given a cautiously positive review of the IPO. The company’s consistent revenue growth, strong order book, and sectoral demand work in its favour. However, the valuation metrics suggest moderate pricing, and as such, analysts recommend the issue primarily for listing gains and for investors with a higher risk appetite. The IPO’s grey market activity also reflects positive sentiment, though long-term investors are advised to assess industry cyclicality and working capital risks before making commitments.

The Vikran Engineering IPO represents a significant opportunity in India’s infrastructure and EPC landscape. With its strong financial growth, experienced management, robust business model, and healthy demand outlook in the power transmission and distribution sector, the company has positioned itself well. However, investors should weigh the GMP trends, valuation levels, and subscription momentum before making their investment decision.

The Upcoming IPOs in this week and coming weeks are Amanta Healthcare, Rachit Paints, 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.

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