IPO Details
Issue Opening Date: August 26, 2025
Issue Closing Date: August 29, 2025
Issue Size: ₹ 772 Cr. (@ upper price band of Rs. 97)
Fresh Issue: ₹ 721 Cr.
Offer for Sale (OFS): ₹ 51 Cr.
Our View: Subscribe for Long Term Horizon
Price Band: ₹ 92 to Rs. 97 per Equity Share
Face Value: ₹ 1
Lot Size: 148 Shares & multiples thereafter
Minimum Application Amount: ₹ 14,356/- (148 Shares)
Maximum Application Amount: ₹ 1,86,628/- (1,924 Shares)
Small HNI: ₹ 2,00,984/- (2,071 Shares)
Big HNI: ₹. 10,04,920/- (10,360 Shares)
Company Overview
Vikran Engineering is one of the fast-growing Indian Engineering, Procurement and Construction (EPC) companies, showcasing strong revenue growth over FY23–FY25 compared to industry averages. The company provides end-to-end EPC services, including conceptualisation, design, supply, installation, testing, and commissioning on a turnkey basis across sectors such as power, water, and railway infrastructure.
Key operational highlights as of June 30, 2025:
Completed 45 projects across 14 states with a total executed contract value of Rs. 19,199.17 million.
Ongoing 44 projects across 16 states with an order book of Rs. 24,424.39 million.
Diversified project portfolio with major revenue from energy and water infrastructure verticals.
Experience in Solar EPC (up to 100 MWp) and smart metering solutions.
Clients include NTPC, Power Grid Corporation of India, and other government/PSU entities.
Key Highlights
One of the fast-growing EPC companies in India.
Diversified order book with consistent financial performance.
Pan-India presence with a robust supply chain.
Asset-light business model ensuring agility.
Strong in-house technical and engineering capabilities with rigorous quality assurance.
Objects of the Issue
Funding working capital requirements (Rs. 541 Cr.).
General corporate purposes.
Offer for sale of equity shares aggregating to Rs. 51 Cr. The company will not receive any proceeds from the Offer for Sale.
Our Outlook
Incorporated in 2008, Vikran Engineering operates across power, water, and railway infrastructure, providing turnkey EPC services. Its capabilities in solar PV projects and asset-light approach provide competitive advantages in an evolving infrastructure market.
However, investors should be aware of certain risks:
Intense competition and dependency on government contracts.
Working capital-intensive business model with execution challenges.
Substantial decrease in order book (Rs. 700 Cr. at FY25).
Legal charges against the company and negative operating cash flow history.
Revenue concentration risk (88% from top 10 customers).
Financially, Vikran Engineering reported strong growth with Revenue/EBITDA/PAT CAGR of 32%, 42%, and 35% respectively over FY23–FY25. Margins stood at EBITDA 17.5% and PAT 8.44% in FY25, with improved Debt to Equity of 0.58x. ROCE and ROE stood at 23.34% and 16.63% respectively. The IPO is priced at a P/BV of 3.81 with P/E of ~22, lower than industry peers (Techno Electric & Engineering: 40.17x; Transrail Lighting: 30.73x).
Conclusion: Supported by robust growth, improved financials, and a strong order book, Vikran Engineering is positioned for long-term scalability. Investors with a long-term investment horizon may consider subscribing.
Brief Financials
| PARTICULARS |
₹ in Million |
| FY ‘25 |
FY ’24 |
FY ‘23 |
| Total Income |
9,223.64 |
7,914.37 |
5,291.79 |
| Total Expenditure |
8,121.75 |
6,906.81 |
4,765.05 |
| EBITDA |
1,602.35 |
1,332.95 |
797.14 |
| Profit/Loss before Tax |
1,101.89 |
1,007.56 |
539.78 |
| Profit/Loss after Tax |
778.19 |
748.31 |
428.40 |
| E.P.S. (Diluted) |
4.35 |
4.92 |
2.89 |
| P/E (x) (Diluted) |
22.3 |
- |
- |
| RONW (%) |
16.63 |
25.69 |
32.67 |
PRICE CHART (@ ₹ 97) (Retail Category)
| LOT SIZE |
| Amount |
| 148 |
14,356 |
| 296 |
28,712 |
| 444 |
43,068 |
| 592 |
57,424 |
| 740 |
71,780 |
| 888 |
86,136 |
| 1,036 |
100,492 |
| 1,184 |
114,848 |
| 1,332 |
129,204 |
| 1,480 |
143,560 |
| 1,628 |
157,916 |
| 1,776 |
172,272 |
| 1,924 |
186,628 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
2,072 |
200,984 |
| Big HNI |
10,360 |
1,004,920 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
1/9/2025 |
| Initiation of refunds/unblocking ASBA Fund |
2/9/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
2/9/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
3/9/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
