Vikran Engineering Limited is coming up with its Initial Public Offering (IPO) which has created buzz in the primary market. With a combination of fresh issue and offer for sale, the IPO intends to raise ₹772 crore. Investors are curious whether this IPO is a good or bad investment. In this detailed IPO review, we will cover the IPO date, price, size, financial analysis, grey market premium (GMP), valuation compared to peers, reasons to invest, risk factors, and final conclusion – whether you should subscribe or avoid.
About Vikran Engineering Ltd.
Established in 2008, Vikran Engineering Limited is an Engineering, Procurement, and Construction (EPC) company with strong expertise in power transmission & distribution, water infrastructure, railway infrastructure, and solar EPC projects. The company has completed 45 projects across 14 states and has 44 ongoing projects with a robust order book of ₹24,424.39 crore as of June 30, 2025.
Its key government clients include NTPC Limited, Power Grid Corporation of India, and various state electricity boards.
Competitive Strengths
- Diversified business segments across power, water, railways, and solar EPC.
- Strong order book visibility of over ₹24,000 crore.
- Asset-light model with focus on execution efficiency.
- In-house technical and engineering capabilities ensuring quality.
- Experienced promoters and management team with proven industry expertise.
Vikran Engineering IPO Issue Details
- IPO Open Date: August 26, 2025
- IPO Close Date: August 29, 2025
- IPO Size: ₹772 crore
- Fresh Issue: ₹721 crore
- Offer for Sale (OFS): ₹51 crore
- Face Value: ₹1 per share
- Price Band: ₹92 – ₹97 per share
- Lot Size: 148 shares
- Minimum Investment (Retail): ₹13,616
- Listing At: BSE, NSE
- Book Running Lead Manager: Pantomath Capital Advisors Pvt. Ltd.
- Registrar: Bigshare Services Pvt. Ltd.
Financial Performance
Vikran Engineering Financials (₹ in crore):
| Period Ended | Mar 2025 | Mar 2024 | Mar 2023 |
|---|---|---|---|
| Assets | 1,354.68 | 959.79 | 712.47 |
| Total Income | 922.36 | 791.44 | 529.18 |
| PAT | 77.82 | 74.83 | 42.84 |
| EBITDA | 160.24 | 133.30 | 79.71 |
| Net Worth | 467.87 | 291.28 | 131.14 |
Key Ratios:
- ROE: 16.63%
- ROCE: 23.34%
- PAT Margin: 8.44%
- Debt/Equity: 0.58
Observation: The company has shown consistent growth in revenue and profitability, with strong return ratios.
Objects of the Issue
The net proceeds of the IPO will be utilized for:
- Funding working capital requirements (₹541 crore).
- General corporate purposes.
Valuation – P/E Ratio Compared to Peers
- Vikran Engineering P/E (Post Issue): 32.15x
- Peer Comparison (Engineering & EPC sector):
- Highest P/E – KEC International: 36x
- Lowest P/E – Kalpataru Projects: 18x
- Industry Average: 27x
Observation: Vikran Engineering’s valuation is highly priced compared to industry average.
Reasons to Invest in Vikran Engineering IPO
- Strong presence in power transmission & water infrastructure sectors.
- Robust order book of ₹24,424 crore, ensuring revenue visibility.
- Diversified project portfolio across power, water, solar, and railways.
- Consistent financial growth with healthy margins.
- Experienced management with execution track record.
Risk Factors in Vikran Engineering IPO
- Valuation at higher end of peers, making it moderately expensive.
- Dependence on government contracts exposes it to policy changes and delays in execution.
- High working capital requirement, leading to potential debt increase.
- Competition from established EPC players may affect margins.
- Execution risks in multiple states and geographies.
How to Apply for Vikran Engineering IPO?
Investors can apply through:
- ASBA (Application Supported by Blocked Amount) via internet banking.
- UPI-based IPO applications through stock broker platforms like Zerodha, Upstox, Groww, Angel One, etc.
- Direct application via net banking facility of banks offering IPO services.
Vikran Engineering IPO Grey Market Premium (GMP)
As per market observers, the Vikran Engineering IPO GMP is around ₹25-28 per share. This indicates a potential listing gain of 25–28% over the upper price band.
Conclusion – Should You Invest in Vikran Engineering IPO?
Vikran Engineering IPO has strong fundamentals, a healthy order book, and consistent financial performance. However, the IPO is over-priced compared to peers and industry average and has risks tied to government contracts and execution challenges.
- For Listing Gains: Investors can consider subscribing due to decent GMP.
- For Long-Term Investment: Suitable for investors with high risk appetite who believe in infrastructure growth.
- Recommendation: Subscribe after understanding risk factors.
Frequently Asked Questions (FAQs)
1. What are Vikran Engineering IPO dates?
The IPO opens on August 26, 2025 and closes on August 29, 2025.
2. What is Vikran Engineering IPO price band?
The IPO price band is ₹92 – ₹97 per share.
3. What is the lot size for Vikran Engineering IPO?
The lot size is 148 shares, requiring a minimum investment of ₹13,616.
4. What is Vikran Engineering IPO GMP today?
Current GMP is around ₹25-28 per share.
5. Should I invest in Vikran Engineering IPO?
Investors can subscribe with caution for listing gains and consider long-term only if comfortable with EPC sector risks.
6. How much is Vikran Engineering IPO issue size?
The total IPO issue size is ₹772 crore.
7. When will Vikran Engineering IPO shares list?
The tentative listing date is September 3, 2025 on BSE and NSE.
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