Vikran Engineering IPO Vs Anlon Healthcare IPO: A Detailed Market Comparison
- THE MAG POST
- Sep 4
- 5 min read
The primary market is currently abuzz with activity, featuring two prominent Initial Public Offerings (IPOs) from Vikran Engineering Ltd., an infrastructure EPC specialist, and Anlon Healthcare Ltd., a chemical manufacturer. This comparison aims to dissect their respective strengths, potential risks, and market sentiment, providing a clearer picture for discerning investors aiming to make informed decisions in this dynamic environment. Both companies present unique opportunities and challenges, making a thorough analysis crucial for anyone looking to participate in these upcoming listings and potentially capitalize on the growth trajectories they represent.
Navigating the IPO Landscape: Vikran Engineering vs. Anlon Healthcare
The Indian primary market is currently abuzz with activity, featuring two prominent Initial Public Offerings (IPOs) from Vikran Engineering Ltd., an infrastructure EPC specialist, and Anlon Healthcare Ltd., a chemical manufacturer. This comparison aims to dissect their respective strengths, potential risks, and market sentiment, providing a clearer picture for discerning investors aiming to make informed decisions in this dynamic environment.
Decoding the IPO Mechanics: Size, Pricing, and Investment Thresholds
Vikran Engineering's Financial Blueprint
The Vikran Engineering IPO presents a substantial opportunity, with a total issue size of approximately ₹772 crore. This comprises a significant fresh issue component of around ₹721 crore, complemented by an offer-for-sale (OFS) valued at roughly ₹51 crore. The company has strategically set its price band between ₹92 and ₹97 per share. For retail investors, the minimum investment is pegged at ₹14,356, corresponding to a lot size of 148 shares, indicating a focus on attracting a broad investor base while managing the scale of the offering.
Anlon Healthcare's Market Entry Strategy
In contrast, Anlon Healthcare's IPO is more modestly sized, totaling approximately ₹121.03 crore. It involves the issuance of 1.33 crore equity shares, with a price band set from ₹86 to ₹91 per share. The lot size for this offering is 164 shares, requiring a minimum investment of approximately ₹14,924. This smaller scale might appeal to investors seeking exposure to a potentially niche, high-growth sector with a lower initial capital outlay.
Assessing Market Sentiment: The Grey Market Premium Indicator
Vikran Engineering's Grey Market Performance
The grey market premium (GMP) for Vikran Engineering shares currently hovers around ₹13, reflecting a premium of approximately 13.4% over its issue price. This positive sentiment suggests that the market anticipates a modest listing gain, signaling healthy demand and investor confidence in the company's prospects. Such premiums often act as a leading indicator of potential post-listing performance.
Anlon Healthcare's Grey Market Standing
Anlon Healthcare's GMP stands at approximately ₹5, translating to a premium of about 5.49% over its issue price. While positive, this indicates a more conservative market expectation, suggesting limited immediate upside potential upon listing. Investors might view this as a more stable entry point, albeit with potentially lower immediate returns compared to Vikran Engineering.
Expert Opinions and Analyst Ratings
Vikran Engineering: A Strong Buy Recommendation
Industry experts have largely favored Vikran Engineering. Anshul Jain from Lakshmishree Investment highlighted the company's robust execution capabilities, particularly with government and Public Sector Undertaking (PSU) clients, coupled with an experienced management team and strong positioning in a high-growth sector. He recommended a ‘Subscribe’ rating for long-term investors, citing scalability potential. Similarly, Shivani Nyati of Swastika Investmart praised Vikran as one of the fastest-growing EPC players, noting its impressive revenue CAGR of 32.17% and a substantial order book exceeding ₹2,442 crore. She deemed the IPO attractively priced for both listing gains and sustained long-term growth. This positive outlook is echoed by numerous brokerages, including BP Equities, Arihant Capital, Adroit Financial Services, AUM Capital, and Canara Bank Securities, all issuing ‘Subscribe’ recommendations.
Anlon Healthcare: Cautious Optimism from Analysts
Anand Rathi Research views Anlon Healthcare favorably, emphasizing its scalable business model and expanding customer base within a sector characterized by significant entry barriers. The firm valued the issue at 19 times its projected FY25 earnings, assigning a “Subscribe – Long Term” rating. Arihant Capital also recommended a ‘Subscribe’ call, acknowledging Anlon Healthcare's diverse product range, regulatory approvals, and expansion plans. However, they cautioned about potential risks stemming from prolonged client approval cycles. The IPO was valued at 24 times its FY25 earnings, indicating a slightly higher valuation compared to Vikran Engineering, perhaps reflecting its specialized niche.
Company Foundations and Strategic Use of Capital
Vikran Engineering: Infrastructure Prowess and Expansion Funding
Based in Mumbai, Vikran Engineering is a comprehensive infrastructure Engineering, Procurement, and Construction (EPC) company, managing projects from conceptualization through to commissioning. As of June 30, 2025, the company had successfully completed 45 projects valued at approximately ₹1,920 crore across 14 states, with an active pipeline of 44 projects worth over ₹5,120 crore. The capital raised from the IPO is primarily earmarked for strengthening its working capital, allocating roughly ₹541 crore, with the remainder designated for general corporate purposes, underscoring a focus on operational efficiency and sustained growth.
Anlon Healthcare: Specialization in Pharmaceutical Intermediates
Anlon Healthcare specializes in manufacturing high-purity, advanced pharmaceutical intermediates, a critical segment of the healthcare supply chain. The funds procured through its IPO are strategically allocated towards enhancing production capacity, servicing existing debt obligations, meeting working capital demands, and supporting general corporate initiatives. This allocation indicates a clear commitment to scaling operations and improving financial health.
Concluding Thoughts on Investor Prospects
Both Vikran Engineering and Anlon Healthcare present distinct investment profiles within the current IPO market. Vikran Engineering, with its larger scale, strong order book, and broad expert endorsement, appears geared for robust listing gains and long-term growth in the infrastructure sector. Anlon Healthcare, while smaller, offers exposure to the specialized pharmaceutical intermediates market, with potential for steady growth supported by expert recommendations, albeit with a more moderate immediate market outlook. Investors should carefully weigh their risk appetite and investment horizon when choosing between these two compelling opportunities.
Aspect | Vikran Engineering Ltd. | Anlon Healthcare Ltd. |
IPO Size | Approx. ₹772 crore (₹721 crore fresh issue, ₹51 crore OFS) | Approx. ₹121.03 crore (1.33 crore equity shares) |
Price Band | ₹92 - ₹97 per share | ₹86 - ₹91 per share |
Lot Size | 148 shares | 164 shares |
Minimum Investment | ₹14,356 | ₹14,924 |
Grey Market Premium (GMP) | Approx. ₹13 (13.4% premium) | Approx. ₹5 (5.49% premium) |
Expert Sentiment | Generally positive, 'Subscribe' ratings from multiple analysts for listing gains and long-term potential. Highlighted: strong execution, experienced management, healthy order book, fast growth. | Positive but more cautious, 'Subscribe - Long Term' ratings. Highlighted: scalable model, diverse products, sector entry barriers. Noted risk: long client approval cycles. |
Company Business | Infrastructure EPC services (design to commissioning) | High-purity advanced pharmaceutical intermediates manufacturer |
Order Book (Vikran) | Over ₹2,442 crore | N/A |
Revenue CAGR (Vikran) | 32.17% | N/A |
Use of Proceeds | Working capital (₹541 crore), general corporate purposes | Capacity expansion, debt repayment, working capital, general corporate purposes |
Valuation Metric (Anlon) | N/A | 19x FY25 earnings (Anand Rathi), 24x FY25 earnings (Arihant Capital) |
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