Vikran Engineering Limited, one of India’s fast-growing Engineering, Procurement, and Construction (EPC) companies, is entering the capital markets with its Initial Public Offering (IPO). The company has built a strong presence in the infrastructure, power transmission, and distribution sector, handling projects from large-scale EHV substations up to 765 kV to distribution networks connecting end consumers. With this IPO, the company seeks to expand its growth trajectory and strengthen its financial position while offering investors an opportunity to participate in its future journey.

Vikran Engineering Company Overview

Established as a rapidly growing EPC player, Vikran Engineering has diversified expertise across infrastructure projects, power transmission lines, EHV substations, and distribution systems. The company has developed a reputation for executing projects with high efficiency, precision, and reliability.

In terms of scale, Vikran Engineering targeted a turnover of ₹500 crore in FY19-20, and since then, it has significantly expanded its portfolio and financial performance. The company’s capabilities cover the full cycle of project execution—from engineering design, procurement, construction, and commissioning to ongoing maintenance.

Vikran Engineering IPO Details

The Vikran Engineering IPO is a Book Built Issue amounting to ₹772 crore, which comprises:

• Fresh Issue: 7.43 crore shares worth ₹721 crore

• Offer for Sale (OFS): 0.52 crore shares totaling ₹51 crore

This IPO opens for subscription on August 26, 2025, and closes on August 29, 2025. The allotment date is expected to be finalized on September 1, 2025, and the tentative listing date on the BSE and NSE is September 3, 2025.

Vikran Engineering IPO Price Band and Lot Size

• Price Band: ₹92 to ₹97 per equity share

• Market Capitalisation at IPO price: ₹2,501.74 crore (at upper band of ₹97)

• Lot Size: 148 shares

• Retail Minimum Investment: ₹14,356 (148 shares)

• HNI Minimum Investment: 14 lots (2,072 shares) = ₹2,00,984

This structured lot size makes the IPO accessible to retail participants while also catering to institutional and HNI investors.

Lead Managers and Registrar

The IPO is managed by well-established lead managers:

• Pantomath Capital Advisors Private Limited

• Systematix Corporate Services Limited

The registrar for the issue is Bigshare Services Private Limited.

Vikran Engineering IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) of Vikran Engineering IPO is currently hovering around ₹18, indicating possible listing gains of nearly 18.55%. However, it is important to note that GMP is unofficial, unregulated, and should not be the sole basis of investment decisions. It only reflects speculative demand and supply in the unorganized market.

• IPO Price: ₹97

• Expected Listing Price: ₹115

• GMP: ₹18 (as of August 21, 2025, 01:00 PM)

Vikran Engineering IPO Financial Performance

The financials of the company highlight consistent growth:

• Revenue from Operations:

  • FY2025: ₹9,223.64 million

  • FY2024: ₹7,914.37 million

  • FY2023: ₹5,291.79 million

• EBITDA:

  • FY2025: ₹1,667.52 million

  • FY2024: ₹1,387.84 million

  • FY2023: ₹858.92 million

• Profit After Tax (PAT):

  • FY2025: ₹778.19 million

  • FY2024: ₹748.31 million

  • FY2023: ₹428.40 million

This data demonstrates a steady growth trajectory, showcasing the company’s ability to expand operations while maintaining profitability.

Key Ratios and Valuations

• Pre-Issue EPS (FY24): ₹4.35

• Post-Issue EPS (FY24): ₹3.02

• Pre-Issue P/E Ratio: 22.30x

• Post-Issue P/E Ratio: 32.15x

• Industry P/E: 35x

• ROCE (FY24): 23.34%

• ROE (FY24): 16.63%

• RoNW: 16.63%

These ratios suggest the IPO is fairly priced compared to industry peers.

Objectives of the IPO

The company intends to utilize the net proceeds from the IPO for the following purposes:

1. Funding Working Capital Requirements: ₹5,410 million

2. General Corporate Purposes

This infusion of capital will provide the company with the resources to scale operations, strengthen its balance sheet, and improve execution capabilities.

Promoters and Leadership

The company has grown under the leadership of Rakesh Ashok Markhedkar, Chairman and Managing Director, with 34 years of EPC experience. Along with him:

• Avinash Ashok Markhedkar – Over 33 years of industry experience

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

The senior management team comprises professionals with deep expertise across engineering, project execution, finance, and operations, ensuring robust governance and execution strength.

Vikran Engineering IPO Subscription Status

The IPO subscription window opens on August 26, 2025. The live subscription status will be updated on each day of the IPO, reflecting demand across:

• Qualified Institutional Buyers (QIBs)

• Non-Institutional Investors (NIIs/HNIs)

• Retail Investors

Investors can track real-time subscription data to assess demand.

How to Check Vikran Engineering IPO Allotment Status

Investors can check the IPO allotment on the registrar’s website starting from September 1, 2025. Steps include:

1. Visit the IPO allotment status page.

2. Select Vikran Engineering Limited IPO from the list.

3. Enter Application Number, PAN, or DP Client ID.

4. Submit details to view allotment status.

Investment Recommendation

Given the financial growth, strong leadership team, and reasonable valuations, the IPO appears attractive for investors. The presence of a positive GMP further indicates market confidence in potential listing gains.

• Risk Level: Moderate (due to sector competition and execution challenges)

• Investor Type: Suitable for Risk-taking Investors seeking listing gains

• Recommendation: Apply for Listing Gain

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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