Vikran Engineering IPO GMP: Strong Subscription and Analyst Recommendations
- THE MAG POST
- Sep 4
- 5 min read
Vikran Engineering IPO GMP: The initial public offering of Vikran Engineering Ltd., a key player in the infrastructure Engineering, Procurement, and Construction (EPC) sector, has generated considerable buzz, with its second day of bidding witnessing robust investor participation. The Rs 772-crore issue, priced between Rs 92 and Rs 97 per share, has attracted significant interest, with bids for over 307 million shares received against the 55 million offered by the second day's close. This strong demand, reflected in a subscription rate of approximately 5.52 times, underscores investor confidence in Vikran Engineering's market position and future growth prospects, particularly given its strong order book and experienced management team.
Vikran Engineering IPO: A Comprehensive Analysis
The initial public offering (IPO) of Vikran Engineering Ltd., a prominent infrastructure Engineering, Procurement, and Construction (EPC) firm, has garnered significant attention as its bidding period commenced. The Rs 772-crore public issue, with a price band set between Rs 92 and Rs 97 per share, aims to tap into the capital markets to fuel its expansion. As of the second day of bidding, the IPO demonstrated robust investor interest, achieving a subscription rate of approximately 5.52 times. This indicates a strong demand, with bids received for over 307 million shares against the 55 million shares offered, reflecting investor confidence in the company's growth trajectory and market position.
Investor Participation and Market Sentiment
The subscription figures reveal a healthy appetite across various investor segments. The retail individual investor (RII) category saw a subscription of roughly 5.52 times, while the non-institutional investor (NII) segment exhibited even stronger demand, subscribing at an impressive 11.63 times. This broad-based participation underscores the market's positive reception of the Vikran Engineering IPO. However, the Qualified Institutional Buyer (QIB) category registered a subscription of about 0.96 times, suggesting a more cautious approach from institutional investors, though this could change as the bidding progresses.
Grey Market Premium: A Glimpse of Listing Performance
The grey market premium (GMP) for Vikran Engineering’s IPO stood at a notable 13.40% on Thursday. This translates to an unofficial trading price of approximately Rs 110 per share, a Rs 13 premium over the upper end of the IPO price band. A positive GMP generally signals a strong debut for the company’s shares on the stock exchanges, indicating that investors are willing to pay a premium for the stock based on market sentiment and perceived future value. This premium, while not a guarantee, often provides an early indication of potential listing gains.
IPO Details: Price, Lot Size, and Key Dates
The Vikran Engineering IPO has been priced in the range of Rs 92 to Rs 97 per equity share. For retail investors, the minimum investment required is for one lot, comprising 148 shares, necessitating a capital outlay of approximately Rs 14,356. This pricing strategy aims to make the IPO accessible to a wider base of investors. The public subscription window is open from August 26, 2025, to August 29, 2025. The company anticipates the finalization of share allotment around September 1, 2025, with the much-awaited listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) scheduled for September 3, 2025.
Expert Opinions: A 'Subscribe' Recommendation
Market analysts largely recommend subscribing to the Vikran Engineering IPO, citing the company's robust fundamentals and favorable industry outlook. Anshul Jain, Head of Research at Lakshmishree Investment, highlighted Vikran Engineering’s strong execution capabilities, particularly with government and public sector undertakings (PSUs), its seasoned management team, and its strategic positioning within a high-growth infrastructure sector. These factors, Jain believes, position the company for significant scalability and long-term success, warranting a 'Subscribe' rating for long-term investors. He further noted the company’s consistent revenue growth and profitability, supported by a substantial order book exceeding Rs 2,442 crore as of June 30, 2025.
Financial Performance and Order Book Strength
Shivani Nyati, Head of Wealth at Swastika Investmart, pointed out Vikran Engineering's impressive revenue compound annual growth rate (CAGR) of 32.17%, positioning it as one of the fastest-expanding Indian EPC players. The company’s financial health is further bolstered by a consistent increase in revenue and profitability. As of June 30, 2025, Vikran Engineering boasted an impressive order book valued at over Rs 2,442 crore, indicating strong future revenue streams and operational stability. This substantial backlog provides a clear visibility of future earnings and operational capacity, making the company an attractive investment prospect.
Company Profile and Fund Utilization
Vikran Engineering specializes in providing comprehensive, end-to-end EPC services, covering the entire project lifecycle from conceptualization and design to supply, installation, testing, and commissioning on a turnkey basis. The company has a proven track record, having successfully executed 45 projects across 14 states with a total contract value of Rs 1,920 crore. Currently, it manages 44 ongoing projects in 16 states, with an aggregate order value of Rs 5,120 crore. The IPO proceeds, amounting to approximately Rs 721 crore from the fresh issue, are primarily earmarked for working capital requirements (Rs 541 crore) and general corporate purposes. The offer also includes an offer-for-sale (OFS) component of Rs 51 crore by the promoter, contributing to the overall IPO size.
Revenue and Profitability Growth
Vikran Engineering has demonstrated commendable financial performance in recent fiscal periods. Its revenue from operations saw a healthy increase of 16.53% in FY25, reaching Rs 916 crore, up from Rs 786 crore in the previous fiscal year. Concurrently, the profit after tax (PAT) grew by 4%, to Rs 78 crore in FY25 from Rs 75 crore in FY24. While the profit growth appears modest in percentage terms, the absolute increase in profit, coupled with the revenue expansion, signifies a stable and growing enterprise, particularly in the competitive EPC sector.
Listing and Registrar Details
The IPO process is being managed by Pantomath Capital Advisors and Systematix Corporate Services, acting as the book-running lead managers, ensuring a smooth and efficient public offering. Bigshare Services has been appointed as the registrar for the issue, responsible for managing share allocations and investor communications. The company's shares are slated for listing on both the BSE and NSE, providing investors with liquidity and broad market access once the IPO concludes.
Final Verdict: A Promising Infrastructure Play
Considering the company's strong execution capabilities, experienced management, healthy order book, consistent financial growth, and positive market sentiment reflected in the GMP, the Vikran Engineering IPO presents a compelling investment opportunity. Experts largely recommend subscribing to the issue, viewing it as a well-priced offering with potential for both listing gains and sustained long-term value creation in the burgeoning Indian infrastructure sector. The company's strategic focus on government and PSU clients, coupled with its extensive project execution experience, positions it favorably for future growth.
Aspect | Details |
Company | Vikran Engineering Ltd. |
Sector | Infrastructure EPC |
IPO Size | Rs 772 crore |
Price Band | Rs 92 - Rs 97 per share |
Lot Size | 148 shares |
Minimum Investment | Rs 14,356 |
Subscription (Day 2) | 5.52x overall |
Retail Subscription | 5.52x |
NII Subscription | 11.63x |
QIB Subscription | 0.96x |
Grey Market Premium (GMP) | 13.40% (approx. Rs 13 premium) |
Listing Exchanges | BSE & NSE |
IPO Open Date | August 26, 2025 |
IPO Close Date | August 29, 2025 |
Allotment Date | September 1, 2025 |
Listing Date | September 3, 2025 |
Key Strengths | Strong execution track record, government/PSU clients, experienced management, high-growth sector exposure, consistent revenue/profit growth, substantial order book (over Rs 2,442 crore) |
Fund Utilization | Working capital (Rs 541 crore), general corporate purposes |
Expert Recommendation | Subscribe (for listing gains and long-term potential) |
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