Vikran Engineering Limited has launched its much-awaited Initial Public Offering (IPO) which received an overwhelming response from investors across categories. On the final day of subscription, 29 August 2025, the IPO was subscribed 3.72 times, showing the strong demand for the company’s shares.

The IPO, which opened on 26 August 2025 and closed on 29 August 2025, consists of a fresh issue of 7.43 crore shares worth ₹721.00 crores and an offer for sale of 0.52 crore shares worth ₹51.00 crores, taking the total issue size to ₹772.00 crores. The shares are proposed to be listed on BSE and NSE with the tentative listing date scheduled for 3 September 2025.

The price band of the IPO was set between ₹92 to ₹97 per equity share, and the market capitalisation at the upper end of the price band comes to around ₹2,501.74 crores. The lot size for retail investors was 148 shares, requiring a minimum investment of ₹14,356, while High Net Worth Individuals (HNIs) had to apply for at least 14 lots (2,072 shares) amounting to ₹2,00,984.

Grey Market Premium (GMP) of Vikran Engineering IPO

One of the most tracked indicators for IPO investors, the Grey Market Premium (GMP) for Vikran Engineering IPO stood at ₹18. This indicates a potential listing gain of nearly 18.55%, with the expected listing price at ₹115 compared to the issue price of ₹97. However, it is important to note that the grey market is unregulated and should be considered only for educational and informational purposes.

Anchor Investors and Institutional Support

Before the issue opened for public subscription, Vikran Engineering successfully raised ₹231.60 crores from anchor investors at the upper price band of ₹97 per share. A total of 2,38,76,287 equity shares were allotted to anchor investors, showcasing confidence from institutional buyers in the company’s growth prospects. The shares allotted to anchors were adjusted against the Qualified Institutional Buyers (QIBs) quota.

Company Profile and Business Strengths

Vikran Engineering is one of the fast-growing Indian Engineering, Procurement, and Construction (EPC) companies with a diverse portfolio covering infrastructure projects, power transmission, and Extra High Voltage (EHV) substations up to 765kV. The company also specializes in power distribution, managing the entire process from 33/11kV substations to consumer connections.

Under the leadership of Chairman and Managing Director Rakesh Ashok Markhedkar, who has over 34 years of EPC sector experience, and Directors Avinash Ashok Markhedkar and Nakul Markhedkar, the company has scaled rapidly in recent years.

The company reported revenue from operations of ₹9,223.64 million in FY 2025, compared to ₹7,914.37 million in FY 2024 and ₹5,291.79 million in FY 2023, showing consistent growth. The EBITDA stood at ₹1,667.52 million in FY 2025, while the profit after tax (PAT) grew to ₹778.19 million in FY 2025 from ₹428.40 million in FY 2023.

Financial Ratios and Valuation

The pre-issue EPS for FY 2024 is ₹4.35, and the post-issue EPS comes down to ₹3.02. The P/E ratio works out to 22.30x pre-issue and 32.15x post-issue, compared to the industry P/E of 35x, indicating that the IPO is fairly priced. The Return on Capital Employed (ROCE) stood at 23.34%, while Return on Equity (ROE) was 16.63%.

These financial indicators reflect the strength of the company’s operations and its ability to deliver consistent returns, making it attractive for investors who seek listing gains.

Objectives of the IPO

The company plans to utilise the net proceeds from the IPO for:

1. ₹5,410.00 million towards working capital requirements.

2. Funding of general corporate purposes.

Allotment and Listing Details

The allotment date for the IPO is 1 September 2025, and investors can check their allotment status by entering their application number, PAN, or DP Client ID on the registrar’s website. The shares will then be credited to demat accounts before the listing date on 3 September 2025.

Investment Outlook

Considering the company’s strong order book, experienced management, and steady financial growth, the Vikran Engineering IPO has attracted wide investor participation. The subscription status of 3.72 times on the final day confirms this strong demand. With a GMP of ₹18, the IPO is expected to provide short-term listing gains of around 18.55%.

However, analysts have categorised this IPO as suitable mainly for risk-taking investors who are looking for listing gains rather than long-term investment at this stage. The company’s financial stability and growth outlook remain positive, but investors are advised to carefully evaluate before applying in large quantities.

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

The Current active IPO are Oval Projects, Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Vikran Engineering, .

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