The IPO of Vikran Engineering will open on 26 August. This IPO is worth Rs 772 crore. In this, the company will issue new shares worth Rs 721 crore, while the promoters will sell their Rs 51 crore shares through the Offer for Sale (OFS). This issue can be invested till 29 August. Vikran Engineering is an engineering, procurement and construction company.
Vikran Engineering has kept the share band of Rs 92-97 for IPOs. Its share price (upper band) is 32 times as compared to the fY25 earnings. The specialty of the company is its order book, which is 2.2 times its revenue in FY25. The company’s clients include veteran companies like NTPC. Many government power distribution companies are also its clients. The company’s asset-light business model is its specialty.
The company will use most of the money received from the IPO as a working capital. She will also use some money for normal business needs. It is one of India’s fastest growth EPC companies. It offers end-to-end solutions to clients. By June 30, 2025, the company had completed a total of 45 projects in 14 states. Their total value is Rs 1,920 crore. Currently, the company is working on 44 projects in 16 states.
Revenue increased by 16.53 per cent to Rs 916 crore in Vikran engineering operations in FY25. The company’s order book is strong. Its light-asset business model is its specialty. However, in terms of revenue, the company’s dependence is very high on government projects. In the gray market, the company’s shares had more than 17 percent premium. This can lead to a premium in stock stock markets. However, it is difficult to say this firmly in the ups and downs.
There is a risk for investors investing in this stock for the listing gains. The market is weak of the sentiment, which may affect the company’s listing on August 1. On the other hand, if an investor wants to invest in this stock for a long period, then he can invest in shares of already listed companies whose track records are relatively better. It would be fine to distance away from this issue.