Vikran Engineering IPO Day 2: EPC Company's Issue Oversubscribed More Than 5 Times, Check GMP And Other Key Details

Vikran Engineering Ltd IPO (Vikran Engineering IPO) subscription window opened on August 26. The infrastructure sector company's public issue saw strong investor interest on the second day of bidding. Here's a look at some key things to know about Vikran Engineering IPO:

Vikran Engineering IPO GMP

Vikran Engineering's unlisted shares are commanding a grey market premium (GMP) ranging between Rs 9 and Rs 14 per share according to multiple websites that monitor the movement of unlisted shares in the grey market. Given the GMP of Rs 14, the stock is expected to list at Rs 111 apiece, indicating a modest premium of 14.43 per cent.

Vikran Engineering IPO Subscription

On the second day of subscription, Vikran Engineering IPO was booked more than 5 times, cumulatively receiving applications for over 307.67 million shares compared to the 5.87 million shares on offer. Non-Institutional Investors led the demand for Vikran Engineering's shares, booking the issue 11.03 times. Qualified Institutional Buyers and Retail investors booked their quota in Vikran Engineering IPO, 91 per cent and 5.2 times respectively.

Vikran Engineering IPO Offer Size, Listing Date, Price Band

Vikran Engineering IPO issue size aggregates to Rs 772 crore. The infrastructure company's public issue includes a fresh issuance of 74.3 million shares aggregating to Rs 721 crore and an offer for sale of 5.3 million shares amounting to Rs 51 crore.

Vikran Engineering IPO price band has been fixed at Rs 92 to Rs 97 per share. Retail Individual Investors (RIIs) can apply for the EPC company's public issue by placing bids for 148 shares or one lot aggregating to an investment of Rs 14,356.

The construction company will declare the share allotment status on September 1. Successful applicants will receive shares of Vikran Engineering in their demat accounts on September 2. Shares of Vikran Engineering will tentatively list on the BSE and NSE. Vikran Engineering's IPO listing date is September 3.

Vikran Engineering: Key Financials

In the fiscal year ending March 31, 2025, Vikran Engineering's total income stood at Rs 922.36 crore, rising by over 16 per cent compared to Rs 791.44 crore in the preceding fiscal. The profit-after-tax of the company for the fiscal year under review grew by 4 per cent to Rs 77.82 crore compared to Rs 74.83 crore in the preceding fiscal. Vikran Engineering's net worth also increased by more than 60 per cent to Rs 467.87 crore in the fiscal year ended March 31, 2025, compared to Rs 291.28 crore in the financial year ended March 31, 2024.

Vikran Engineering Peers

According to Vikran Engineering's Red Herring Prospectus (RHP) the company has multiple listed peers such as Bajel Projects Ltd, Kalpataru Projects Ltd, Techno Electric & Engineering Company Ltd, SPML Infra Ltd, KEC International Ltd and Transrail Lighting Ltd.

Vikran Engineering: Business Model

Vikran Engineering's business model involves providing services ranging from conceptualisation, design, supply, installation, testing and commissioning of projects. The company mentioned in its Red Herring Prospectus that a bulk of its revenue comes from undertaking projects in the energy and water infrastructure verticals. The company has undertaken projects in power transmission, power distribution, underground water distribution, surface water extraction, among other sectors.

Vikran Engineering IPO: Risks and Strengths

Here's a look at some of the key risks related to Vikran Engineering's business according to the company's RHP:

• Vikran Engineering disclosed in its RHP that its business is driven by tenders from government authorities, public sector undertakings and private companies.

• The construction company added that trade receivables, contract assets and inventories form a substantial part of our current assets and net worth, failing to manage the same can have an adverse effect on its profitability.

• Vikran Engineering Ltd said that a significant portion of its order book and revenue come from certain key customers and projects located in India, inability to secure future projects is expected to impact the business negatively.

Here's a look at some of the key strengths of Vikran Engineering according to the company's RHP:

• Vikran Engineering claimed in its RHP that it is one of the fast-growing engineering, procurement and construction (EPC) companies in India.

• The EPC company also mentioned in its RHP that it has a pan-India presence and has executed work across 22 states and 190 sites and store locations as of June 30, 2025.

• Vikran Engineering claimed in its RHP that it has in-house technical and engineering capabilities, process control and quality assurance.

Vikran Engineering IPO: Objective

Vikran Engineering aims to use the proceeds of its IPO to finance working capital needs and general corporate purposes.