The initial public offering (IPO) of Vikran Engineering continued to see a decent demand during the third and final day of the bidding process, thanks to the all-round demand.
The issue was booked nearly 2.5 times on the first day and ended day two with more than 5.5 times subscription.
Vikran Engineering is selling its shares in the price band of Rs 92-97 apiece. Investors can apply for a minimum of 148 shares and its multiples thereafter. It is looking to raise Rs 772 crore via IPO, which includes a fresh share sale of Rs 721 and an offer-for-sale (OFS) of up to 52,57,731 equity shares worth Rs 51 crore.
According to the data, the investors made bids for 90,83,31,796 equity shares, or 15.46 times, compared to the 5,87,39,128 equity shares offered for the subscription by 2.15 pm on Friday, August 29, 2025. The bidding for the issue, which kicked-off on Tuesday, August 26, shall conclude today.
The allocation for qualified institutional bidders (QIBs) was subscribed 4.34 times, while the portion reserved for retail investors saw a subscription of 44.57 times. Allocation for non-institutional investors (NIIs) was subscribed 9.35 times as of the same time.
Incorporated in 2008, Thane-based Vikran Engineering is an engineering, procurement, and construction (EPC) company. Its projects include underground water distribution and surface water extraction, overhead tanks, and distribution networks. It is active in power transmission, water infrastructure, railway infrastructure and solar energy sector.
The grey market premium (GMP) of Vikran Engineering has seen some correction on the back of selling in the broader markets. Last heard, the company was commanding a premium of Rs 9-10 in the unofficial market, suggesting a mild listing of 9-10 per cent for the investors. The GMP stood around Rs 21, before the issue had opened for bidding.
Analysts mostly had a mixed view on this issue. They suggested subscribing to the issue on the back of experienced promoters, strong financial, rising demand for EPC solutions, best in class return ratios, robust order book. On the other hand, negative cash flow, cash intensive business, ban by the executive director of Gati Shakti are the major concerns for the company.
Vikran delivers superior profitability compared to peers, with Ebitda margins of 17.5 per cent versus the industry average of 11 per cent. Its ROCE and ROE are also higher. In terms of valuation, the IPO is priced at a P/E of 32.1 times and EV/EBITDA of 16.9 times, which are lower than the peer averages, making the pricing reasonable, said Nirmal Bang Securities.
“While the company is smaller in scale, it offers higher growth and better margins. Considering these factors, we recommend a ‘subscribe’ rating for the IPO,” it added.
Vikran Engineering raised Rs 231.6 crore from anchor investors as it allocated 2,38,76,287 equity shares at Rs 97 apiece. Vikran Engineering has reserved 50 per cent of the net issue for qualified institutional bidders, while non-institutional investors (NIIs) will get 15 per cent of the allocation. Retail investors will have 35 per cent share allocation in this IPO.
Vikran’s FY25 P/E ratio of 32 times appears fairly priced compared to peers. Vikran has an established position as a fast-growing EPC player with a diversified order book across power transmission, water infrastructure, and railway sectors, said Geojit Financial Services.
“Its strategic focus on capitalizing on government initiatives like the Revamped Distribution Sector Scheme and Jal Jeevan Mission, coupled with its asset-light model and pan-India presence, positions it well to benefit from India’s infrastructure boom. Therefore, we recommend a ‘subscribe’ rating for investors with a long-term horizon,” it added.
Vikran Engineering reported a net profit of Rs 77.82 crore with a revenue of Rs 922.36 crore for the financial year ended on March 31, 2025. The company clocked a net profit of Rs 74.83 crore with a revenue of Rs 791.44 crore for the year 2023-24. Vikran Engineering shall command a market capitalization Rs 2,501,74 crore.
Pantomath Capital Advisors and Systematix Corporate Services are the book running lead managers for Vikran Engineering IPO and Bigshare Services is the registrar of the issue. Shares of the company shall be listed at both BSE and NSE on September 3, 2025.