Vikran Engineering has announced its IPO to strengthen its market presence and meet business requirements. The issue includes a fresh offering of 7.43 crore equity shares, raising ₹721 crore, along with an offer for sale of 0.53 crore shares worth ₹51 crore.
The IPO subscription window will open on August 26, 2025, and close on August 29, 2025. Allotment is likely to be finalized on September 1, 2025, with the listing scheduled on BSE and NSE on September 3, 2025. This IPO reflects the company’s expansion drive and growth ambitions.
Vikran Engineering has fixed its IPO price band at ₹92–₹97 per share, with a lot size of 148 shares. For retail investors, the minimum investment required is ₹13,616. Small Non-Institutional Investors (sNII) must apply for at least 14 lots, totaling 2,072 shares and ₹2,00,984, while Big Non-Institutional Investors (bNII) need a minimum of 70 lots, i.e., 10,360 shares, amounting to ₹10,04,920.GMP of Vikran Engineering IPO
As of August 22, 2025, Vikran Engineering’s shares were trading at Rs 119 in the grey market, reflecting a 22.68 % premium over the IPO cap price of Rs 97. This translates to a gain of Rs 22 per share, signaling healthy investor demand and positive sentiment ahead of the official listing.
Objective of the IPO
Vikran Engineering plans to utilize its IPO proceeds primarily for funding working capital requirements, with an allocation of ₹541 crore. The remaining funds will be directed towards general corporate purposes.
This strategy highlights the company’s focus on strengthening liquidity and ensuring smoother business operations while also supporting future growth and strategic needs.
Company Business
Vikran Engineering Limited operates as a diversified EPC company with expertise across multiple infrastructure domains. Its core projects include underground water distribution systems, surface water extraction, overhead tanks, and distribution networks, reflecting strong capabilities in executing complex water infrastructure projects.
The company also provides services in power transmission and distribution, handling extra-high voltage substations up to 400kV. Additionally, it is engaged in railway infrastructure development and expanding into solar EPC projects, showcasing a balanced portfolio across essential infrastructure sectors.
As of June 30, 2025, Vikran Engineering has executed 45 projects worth ₹19,199.17 million across 14 states and is currently handling 44 projects across 16 states, valued at ₹51,202.07 million, with an order book of ₹24,424.39 million. Its strong government client base includes NTPC, Power Grid, and state power distribution companies, ensuring steady project inflows.
Promoter Holdings
Vikran Engineering’s promoters include Rakesh Ashok Markhedkar, Avinash Markhedkar, and Nakul Markhedkar. The promoter shareholding stands at 81.78% before the IPO and will dilute post-issue. This reflects strong promoter control initially, while the IPO will enhance public participation and broaden the company’s shareholder base.
Financial Performance
Vikran Engineering Ltd. has showcased consistent growth in recent years, with total income climbing to ₹922.36 crore in FY25 from ₹791.44 crore in FY24, reflecting a 17% increase. Profit after tax also grew steadily, reaching ₹77.82 crore in FY25, indicating improved operational efficiency supported by a stronger EBITDA of ₹160.24 crore.
The company’s balance sheet reflects robust expansion, as assets rose to ₹1,354.68 crore in FY25, compared to ₹959.79 crore in FY24. Net worth more than doubled in two years, supported by rising reserves and surplus, highlighting financial stability. However, borrowings also grew, signaling increased leverage to fund growth initiatives.
Vikran Engineering Ltd. reflects strong financial health with ROE and RoNW at 16.63% and ROCE at 23.34%, showcasing efficient capital utilization. A moderate debt-to-equity ratio of 0.58 indicates balanced leverage. With PAT margin at 8.44% and EBITDA margin of 17.50%, profitability is stable. Its price-to-book value of 3.81 suggests optimistic market valuation.
Lead Manager & Registrar
Vikran Engineering’s IPO is supported by Bigshare Services Pvt. Ltd. as the registrar, ensuring smooth allotment and investor communication. The lead managers are Pantomath Capital Advisors Pvt. Ltd. and Systematix Corporate Services Ltd., both experienced in handling IPOs. Their involvement enhances credibility, offering investors confidence in efficient execution and transparency during the public issue process.
Competitive Strengths:
- Vikran Engineering is a rapidly growing EPC company recognized for timely project execution in power transmission, distribution, and water infrastructure.
- The company maintains a well-diversified order book across multiple business verticals, ensuring consistent revenue flow and stable financial growth.
- Operating with an asset-light model, Vikran Engineering efficiently leverages resources, reducing capital intensity while maintaining scalability and profitability in operations.
- Strong in-house engineering expertise, process control systems, and quality assurance practices strengthen project delivery standards and enhance client satisfaction.
- Guided by experienced promoters and a skilled management team, the company benefits from deep domain knowledge and strategic industry insights.
Risk Factor
- Vikran Engineering executes projects on-time or ahead, but delays in future contracts may hurt business prospects, financials, and growth opportunities.
- With revenues spread across government, PSU, and private tenders, any policy shifts or reduced bidding could disrupt operations and profitability.
- The ₹19,557 million Order Book reflects growth, but cancellations, modifications, or delays could significantly impact projected income and financial performance.
- Dependence on a few key customers and domestic projects makes revenue vulnerable to client concentration and sector-specific risks in India.
- Heavy reliance on power transmission and water infrastructure means sectoral disruptions or economic changes could directly affect cash flows and profitability.
Vikran Engineering’s IPO reflects its growth ambitions, strong financial track record, and diversified presence in critical infrastructure sectors. With robust order books, experienced management, and efficient capital utilization, the company is well-positioned for expansion.
However, dependence on government tenders, sectoral risks, and project delays remain key challenges. Overall, the IPO offers investors an opportunity to participate in a promising EPC player’s journey, balancing potential rewards with inherent risks of the infrastructure sector.
Written by Abhishek Singh
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