Vikran Engineeering IPO Overview
Vikran Engineering Ltd’s IPO opens on August 26, 2025, and closes on August 29, 2025. The issue size is ₹772 crore, comprising a fresh issuance of ₹721 crore and an offer for sale of ₹51 crore, totaling approximately 79.6 million shares at a price band of ₹92-97. Proceeds will be deployed mainly for working capital (₹541 crore) and general corporate purposes. The IPO is set to list on BSE and NSE on September 3, 2025.
Vikran Engineeering Subscription and GMP Status
| Subscription Rate Source: NSE/BSE | |||
| Category | Shares Offered | Shares Bid For | Subscription (x) |
| QIBs | 1,67,82,608 | 1,69,99,280 | 1.01 |
| NIIs | 1,25,86,956 | 37,06,23,524 | 29.45 |
| Retails | 2,93,69,564 | 23,64,29,112 | 8.05 |
| Employees | |||
| Shareholders | |||
| Total | 5,87,39,128 | 62,40,51,916 | 10.62 |
| Last Updated: 29 Aug 2025- 12 PM | |||
| GMP (₹) (grey market premium) | IPO Price (₹) |
| 11 | 92-97 |
| Last Updated: 29 Aug 2025- 12 PM | |
| 📌 Note: The above GMP data is unofficial and has been collected from multiple sources including grey market dealers and market observers. It is provided purely for informational and educational purposes. Please consult your financial advisor before making any investment decisions. | |
IPO Key Date
Core Business & Overview
Vikran Engineering Limited, incorporated in 2008, is a fast-growing Indian EPC firm offering end-to-end turnkey solutions—from conceptualization and design to supply, installation, testing, and commissioning. The company operates primarily in the power (transmission and distribution), water infrastructure, railway, and solar EPC sectors.
Sector Breakdown:
Power Infrastructure: Projects include high-voltage transmission lines (up to 400 kV) and Extra High Voltage (EHV) substations (up to 765 kV), power distribution solutions, and smart metering.
Water Infrastructure: Undertakes underground distribution, surface water extraction, overhead water tanks, and distribution networks.
Railway Infrastructure: Engaged in railway electrification, traction substations, underground EHV cabling, and signaling systems.
Solar Energy EPC: Expanding into renewable energy with turnkey solar PV projects up to 100 MWp and balance-of-system projects up to 300 MWp.
Execution Footprint & Order Book (as of 30 June 2025):
Completed projects: 45 across 14 states, valued at over ₹1,919 crore (₹19,199 million).
Ongoing projects: 44 across 16 states, with total orders worth ~₹5,120 crore (₹51,202 million), and an order book of ~₹2,442 crore (₹24,424 million).
Strengths
- Timely Execution Track Record:
The firm has consistently demonstrated the ability to deliver projects efficiently, building strong client trust—especially for government contracts. - Diversified Portfolio & Balanced Revenue Mix:
Its business spans multiple sectors—power (60%), water (37%), and others like rail and solar—minimizing dependence on any single vertical. The client mix includes government, public sector, and private sector segments, which reduces concentration risk. - Pan-India Presence & Robust Supply Chain:
The company has operated across 14–22 states, with 16 states active as of mid-2025. It manages 190 on-ground sites and stores, and collaborates with over 3,500 suppliers and service providers, ensuring a strong and agile supply chain. - Asset-Light Business Model:
By leasing equipment rather than owning heavy capital assets, Vikran maintains a lean structure. This is reflected in improving fixed asset turnover: 57 (FY23) → 91 (FY24) → 101 (FY25).
Risks
- Regulatory and Compliance Risk:
The Railway Board issued a recommendation on July 26, 2024, for a two-year ban citing “alleged breach of integrity and illegal gratification.” If enforced, this could damage reputation and ability to secure future contracts. - Project Execution Risks:
Any failure to meet contractual deadlines could result in penalties, strained client relationships, and diminished competitiveness in future bids. - Working Capital Pressure & Liquidity Risk:
Significant reliance on trade receivables, inventories, and contract assets could strain liquidity, especially given the capital-intensive nature of EPC operations. - Tender and Demand Dependence:
A large chunk of revenue relies on government tenders. Any policy shift, budgetary reductions, or inability to win bids may adversely affect revenue flow. - Raw Material & Logistics Disruptions:
Volatility in prices of key inputs (e.g., steel, cement) or logistics issues (since the firm depends on external service providers) could impact project margins
Financial Performance Overview (₹ in Crore)
| Year | Revenue | Profit | Assets |
| FY 2023 | 524.30 | 42.84 | 712.47 |
| FY 2024 | 785.95 | 74.83 | 959.79 |
| FY 2025 | 915.85 | 77.82 | 1354.67 |
Revenue
- FY 2023: ₹524.3 Cr
- FY 2024: ₹785.95 Cr → 49.8% growth
- FY 2025: ₹915.85 Cr → 16.5% growth
Revenue shows strong growth, though pace slowed in FY 2025, signaling stabilization after rapid expansion.
Profit
- FY 2023: ₹42.84 Cr
- FY 2024: ₹74.83 Cr → 74.7% growth
- FY 2025: ₹77.82 Cr → 4.0% growth
Profits surged in FY 2024, but growth almost plateaued in FY 2025, hinting at rising costs or margin pressures.
Assets
- FY 2023: ₹712.47 Cr
- FY 2024: ₹959.79 Cr → 34.7% growth
- FY 2025: ₹1354.67 Cr → 41.1% growth
Asset base is expanding rapidly, showing continuous project buildup and capital deployment.
✅ Pros
- Strong track record of timely EPC project execution
- Diversified presence across power, water, rail & solar sectors
- Robust order book ensuring revenue visibility
- Asset-light model supporting efficiency
- Healthy revenue and asset growth trajectory
❌ Cons
- Profit growth slowing in FY25 despite revenue rise
- Heavy dependence on government contracts/tenders
- High working capital requirements and receivables risk
- Regulatory risk (railway ban recommendation issue)
- Rising input & logistics costs may hit margins
Disclaimer:
The above IPO analysis and financial data are based on information provided by the company in its official documents. For complete details, please refer to the Red Herring Prospectus (RHP) linked above. Investors are strongly advised to consult their financial advisor before making any investment decisions.
