Vikran Engineering IPO Research Report | NiveshGuruji

📑 Premium IPO Research Report – Vikran Engineering Ltd

NiveshGuruji Research

1. Basic IPO Details

Company: Vikran Engineering Ltd

Sector: EPC – Power, Water, Railway & Solar Infrastructure

IPO Open/Close: Aug 26 – Aug 29, 2025

Listing Date: Sept 3, 2025 (Tentative)

Price Band: ₹92 – ₹97 per share

Lot Size: 148 shares (Min. ₹14,356)

Issue Size: ₹772 crore (Fresh ₹721 Cr + OFS ₹51 Cr)

Type of Issue: Book-built IPO (Fresh + OFS), Mainboard NSE & BSE

Definition: These are the primary IPO details—timeline, size, type—key for planning your application.

2. Company Profile

Vikran Engineering (est. 2008) is a pan-India EPC firm executing turnkey projects across power transmission, water infrastructure, railway electrification, and solar segments. Completed ~45 projects in 14 states and currently executing 44 projects across 16 states with an order book of ~₹2,442 crore. Promoters include Ashish Kacholia and Mukul Agrawal-backed investors. (ET Markets)

Definition: Company profile helps assess business strength and promoter credibility—essential before applying.

3. Fund Utilisation

Working capital requirements (~₹541 crore)
General corporate purposes (~₹180 crore)
Issue expenses

Definition: Positive if funds are for expansion or balance sheet; watch if mainly promoter exits.

4. Financial Performance (₹ Cr)

Year	Revenue	PAT	Notes
FY25	₹922.36	₹77.82	↑17% Revenue & ↑4% PAT YoY
FY24	₹791.44	₹74.83

Definition: Revenue growth shows demand; PAT rising indicates profitability.

5. Valuation Metrics

P/E Ratio: ~32× at ₹97 (FY25 EPS ~₹3)

ROE: ~16.6%

ROCE: ~23.3%

Debt-to-Equity: ~0.58

P/B Ratio: ~3.8×

Valuations modest—ROE & ROCE healthy; moderate leverage.

6. Peer Comparison

Company	P/E	ROE	Revenue (₹ Cr)
Vikran (IPO)	~32×	16.6%	₹922 (FY25)
Techno Electric	~40×	~11%	~₹1,600
SPML Infra	~38×	~10%	~₹1,300

7. Shareholding Pattern (Post IPO)

Promoters: ~56.2%

QIBs, NIIs, Retail: ~43.8% combined

Higher promoter holding indicates commitment; diversification of investor base is balanced.

8. Grey Market Premium (GMP)

Ranges between ₹17–21 per share (~18–21% premium at upper band)

GMP reflects listing sentiment but is unofficial—use cautiously.

9. Market Expert Views

Arihant Capital & Anand Rathi: Subscribe / Subscribe for long term
Reliance Securities: Subscribe, citing scalable business, alignment with government schemes.
SBI Securities: Neutral, mentions valuation fair but highlights moderate risk (receivables, client concentration).