Vikran Engineering IPO opens tomorrow, GMP signals rising demand
What's the story
Vikran Engineering, a leading player in the engineering, procurement, and construction (EPC) sector, is set to launch its initial public offering (IPO) tomorrow. The public issue will remain open for subscription till August 29 with a price band of ₹92-97 per share. The company plans to raise around ₹772 crore through this IPO.
Market response
GMP indicates positive sentiment
The upcoming IPO from Vikran Engineering has generated a lot of buzz in the gray market. The shares are currently trading at a premium of 17% over the issue price of ₹97. This indicates a potential listing price of around ₹113 per share. However, it's important to note that this gray market premium (GMP) is unofficial and can change anytime.
Issue details
Issue details
The public issue will be conducted via the book-building process. Up to 50% of the offer is reserved for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and a minimum of 35% for retail investors. The issue consists of a fresh share sale worth ₹721 crore and an offer for sale (OFS) of ₹51 crore.
Business overview
Project portfolio and order book
Vikran Engineering is one of India's fastest-growing EPC companies. It has a diversified project portfolio in energy and water infrastructure, railway, and solar EPC segments. As of June 30, the company had executed 45 projects across 14 states with a total contract value of ₹1,920 crore. Currently, it is working on 44 projects across 16 states with an aggregate order value of ₹5,120 crore.
Financials
Financial performance and government clients
Vikran Engineering has posted a 16.5% rise in revenue from ₹786 crore in FY24 to ₹916 crore in FY25. The profit after tax grew by 4% during the same period to ₹78 crore. The company's key government clients include NTPC, Power Grid Corporation of India, South Bihar Power Distribution, and North Bihar Power Distribution, among others.