Introduction to Vikran Engineering IPO
Vikran Engineering, an EPC (Engineering, Procurement and Construction) company, has hit the markets with its ₹772 crore IPO opening on 26 August 2025. The IPO has already created a stir in the grey market, with a 22% premium hinting at strong listing gains.
The Thane-based company, incorporated in 2008, provides turnkey solutions across power transmission, water infrastructure, railways, metro electrification, and renewable energy. With over 190 project sites across 22 states, it has executed 45 projects worth ₹1,920 crore and has 44 ongoing projects valued at ₹5,120 crore.
History of the company
Starting out in 2008, Vikran Engineering built its foundation by taking on government projects. Over time, it spread across sectors like power, water, and railways. The company operates on an asset-light model, renting equipment instead of owning it, which keeps costs flexible and supports faster scalability.
Its client list is impressive, with names like NTPC, Power Grid Corporation of India, and Indian Railways along with multiple state water and sanitation missions.
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Objective of the IPO
The IPO will raise ₹772 crore, which includes a fresh issue of ₹721 crore and an offer-for-sale worth ₹51 crore. Out of this, around ₹541 crore will be channelled into working capital, while the rest goes towards general corporate purposes.
Current IPO status
On Day 1, the IPO saw 1.5x overall subscription, with the retail portion covered 20% and NIIs at 25%. QIB bids are expected to strengthen closer to the closing date.
Meanwhile, in the grey market, Vikran Engineering shares are trading at a ₹21–22 premium, pointing towards a likely listing price of ₹118 per share, almost 22% higher than the issue price of ₹97.
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Financial performance
| Financial year | Revenue (₹ crore) | PAT (₹ crore) |
| FY23 | 524 | 43 |
| FY24 | 786 | 75 |
| FY25 | 916 – 1,354* | 78 |
*Audited results show ₹916 crore, while IPO filings reflect ₹1,354.7 crore.
Between FY23 and FY25, revenue grew at a 32% CAGR, while profit grew at a 35% CAGR. FY25 EBITDA stood at ₹160.2 crore with margins of 11.8%, one of the best among EPC peers.
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IPO Details
| Detail | Value |
| IPO open date | 26 August 2025 |
| IPO close date | 29 August 2025 |
| Price band | ₹92 – ₹97 per share |
| Face value | ₹1 |
| Market lot | 148 shares |
| Issue size | ₹772 crore |
| Fresh issue | ₹721 crore |
| Offer for sale | ₹51 crore |
| Basis of allotment | 1 September 2025 |
| Refunds / demat credit | 2 September 2025 |
| Listing date | 3 September 2025 |
| Exchanges | NSE & BSE |
Shareholding pattern
| Category | Quota % |
| Qualified institutional buyers (QIB) | ≤ 50% |
| Non-institutional investors (NII) | ≥ 15% |
| Retail individual investors (RII) | ≥ 35% |
How will the IPO funds be used?
- ₹541 crore for working capital
- Balance for general corporate purposes
Why should you invest in Vikran Engineering IPO?
Advantages
- Robust order book: Over ₹2,000 crore (2x FY25 revenue) ensures growth visibility for the next two years.
- Asset-light operations: Renting equipment reduces costs and adds flexibility.
- Strong client base: Government, PSU, and private sector clients across energy, railways, and water.
- Experienced promoters: Led by Rakesh Ashok Markhedkar with 34 years in EPC.
- Anchor support: Pre-IPO participation from Ashish Kacholia, Mukul Aggarwal, and institutions like SBI General Insurance.
- Higher margins than peers: EBITDA margin at 11.8% in FY25, ahead of industry benchmarks.
Disadvantages
- Working capital pressure: Negative operating cash flows in recent years.
- Client dependence: 21–29% revenue tied to a single client.
- Competitive bidding risks: Reliance on winning tenders could impact profitability.
- Regulatory red flags: Ban in railway electrification projects flagged by analysts.
Bottomline
Vikran Engineering IPO is a blend of opportunity and risk. On one hand, the 22% grey market premium, strong order book, and anchor backing make it attractive. On the other hand, working capital stress and client dependence are worth noting.
For investors seeking long-term exposure to India’s infrastructure growth, this IPO looks promising. For short-term players chasing listing gains, tracking GMP and subscription trends will be key.
