Vikran Engineering Limited is coming up with its ₹772 crore Initial Public Offering (IPO), which has generated significant investor interest in the primary market. While the company has strong fundamentals, one of the biggest factors that investors track before subscribing is the Grey Market Premium (GMP) and the listing gains potential. Let’s analyze the current GMP, expected returns, and valuation insights.
Check Review and Analysis of Vikran Engineering IPO which we posted earlier.
Vikran Engineering IPO Grey Market Premium (GMP)
As of August 23, 2025, market observers report that Vikran Engineering IPO is trading at a GMP of ₹25–28 per share. Considering the upper price band of ₹97, this indicates a potential listing gain of 25%–28%.
- IPO Price Band: ₹92 – ₹97
- Current GMP: ₹25 – ₹28
- Expected Listing Price: Around ₹122 – ₹125
- Estimated Gain: 25%–28%
Observation: While GMP can fluctuate until listing day, current trends indicate strong investor demand.
Listing Gains Potential
- The strong order book of over ₹24,000 crore provides revenue visibility.
- Robust demand from institutional investors may push listing price further.
- However, high valuations (P/E of 32.15x) compared to peers may limit post-listing upside.
Valuation vs. Peers
| Company | P/E Ratio |
|---|---|
| KEC International | 36x |
| Kalpataru Projects | 18x |
| Industry Average | 27x |
| Vikran Engineering (Post Issue) | 32.15x |
Observation: The IPO is priced above industry average, making it moderately expensive. Investors should weigh GMP hype against valuation risks.
Should You Apply for Listing Gains?
- Short-Term View: Investors can consider subscribing for listing gains, given healthy GMP and market sentiment.
- Long-Term View: Only suitable for investors who can take high risk and believe in India’s infrastructure growth story.
- Investors can check earlier article on Strengths, Risk Factors and Long Term Prospects of Vikran Engineering IPO.
Final Recommendation
Vikran Engineering IPO looks attractive for short-term listing gains as GMP suggests 25%–28% upside. However, long-term investors should carefully evaluate valuation risks and sector challenges before committing.
✅ Disclaimer: GMP is unofficial and purely indicative. Listing gains are not guaranteed. Investors should consider risk factors and consult their financial advisor before investing.
- 10 Debt Mutual Funds Outperformed in Last 1 Year with 10% to 24% Returns in 2025 - August 24, 2025
- Vikran Engineering IPO GMP, Listing Gains Potential and Valuation Analysis - August 24, 2025
- Vikran Engineering IPO – Key Strengths, Risks, and Long-Term Prospects Investors Should Know - August 24, 2025
Discover more from Myinvestmentideas.com
Subscribe to get the latest posts sent to your email.