The Vikran Engineering IPO is set to open soon, drawing strong attention from retail and institutional investors alike. This article provides a comprehensive breakdown of the IPO, including key dates, issue structure, financials, strengths, risks, Grey Market Premium (GMP), and expert insights to help you decide whether to invest.
Vikran Engineering IPO Overview
Vikran Engineering, a well-established player in the Engineering, Procurement, and Construction (EPC) sector, plans to raise ₹772 crore through a mix of fresh issue and Offer for Sale (OFS).
Key IPO Details
- IPO Open Date: August 26, 2025
- IPO Close Date: August 29, 2025
- Price Band: ₹92 – ₹97 per share
- Lot Size: 148 shares (minimum investment: ₹14,356)
- Maximum Retail Application: 1,924 shares (13 lots worth ₹1,86,628)
- Anchor Investors: August 25, 2025
- Basis of Allotment: September 1, 2025
- Demat Credit: September 2, 2025
- Listing Date (BSE & NSE): September 3, 2025
- Lead Managers: Pantomath Capital Advisors & ESystematix Corporate Services
- Registrar: Bigshare Services
Issue Structure
- Total Issue Size: ₹772 crore
- Fresh Issue: ₹721 crore (7.43 crore shares)
- Offer for Sale: ₹51 crore (5.3 million shares by promoter Rakesh Ashok Markhedkar)
- QIB Portion: Up to 50%
- Retail Investors: Minimum 35%
- Non-Institutional Investors: Minimum 15%
Use of Proceeds
- Fresh Issue: To fund working capital and general corporate needs
- OFS: Proceeds to selling promoter
Company Profile & Projects
Vikran Engineering has carved a strong presence in power, water, railways, and solar infrastructure. The company has executed projects across 22 states and currently manages 44 ongoing projects in 16 states.
Key Business Segments
- Power: High-voltage substations (up to 400kV), distribution networks
- Water: Underground pipelines, overhead tanks, and urban water infrastructure
- Railways: Electrical systems and support works for major railway projects
- Solar: Growing focus on solar EPC projects
Track Record (as of June 30, 2025)
- Completed Projects: 45 across 14 states (₹1,919.92 crore value)
- Ongoing Projects: ₹5,120.21 crore
- Unexecuted Order Book: ₹2,442.44 crore
Financial Performance
| Year | Revenue (₹ crore) | Profit After Tax (₹ crore) |
|---|---|---|
| FY24 | 785.95 | 74.83 |
| FY25 | 915.85 | 77.82 |
- Revenue grew 16.5% YoY in FY25
- PAT increased 3.9% YoY, showing stable profitability
Business Strengths
- Rapid Growth: Among India’s fastest-growing EPC contractors with proven execution speed
- Pan-India Presence: Projects across 22 states ensure geographic diversification
- Experienced Management: Leadership with 34+ years in EPC and a design team with 90+ years’ combined experience
- Diversified Clients: Worked with NTPC, Power Grid, and multiple state projects
- Solid Financials: Strong revenue growth, robust order book, and expansion into solar infrastructure
Weaknesses & Risks
- Government Dependence: 46% of FY24 revenue came from government contracts
- Client Concentration: A few clients account for a large share of revenues
- Cash Flow Risks: Delays or early project closures may impact cash flows
- Execution Pressure: Any failure to deliver on time may affect credibility and future orders
Grey Market Premium (GMP)
As of August 19, 2025, Vikran Engineering shares were trading at a GMP of ₹12. This indicates a listing price of around ₹109 per share—reflecting a 12% premium over the issue price and moderate investor enthusiasm.
How to Apply for Vikran Engineering IPO
Investors can apply through:
- ASBA via Net Banking
- UPI-enabled broker apps
- Available for retail, HNI, and institutional investors
Final Verdict
The Vikran Engineering IPO offers investors a chance to participate in India’s growing infrastructure and energy development sector. Backed by strong financials, a proven track record, and a robust order book, the company is well-positioned for growth.
However, risks like government contract dependence and client concentration must be considered. With a steady GMP and solid fundamentals, this IPO may appeal to long-term investors seeking exposure to EPC and infrastructure growth in India.
🔔 Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Investors are advised to do their own research or consult a financial advisor before investing in any IPO.