IPO Alert! Ashish Kacholia backed Vikran Engineering files DRHP with Sebi

Mumbai-based Vikran Engineering, an engineering, procurement & construction (EPC) company engaged in power, water, and railway infrastructure, has filed its draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (Sebi), to raise Rs 1,000 crore through an initial public offering (IPO).

Vikran Engineering is backed by several pre-IPO investors, including India Inflection Opportunity Fund, Ashish Kacholia, Mukul Agarwal, Negen AIF, besides other family offices and HNI investors.

The public issue of Vikran Engineering comprises a fresh issue of shares up to Rs 900 crore and an offer for sale (OFS) with promoter Rakesh Ashok Markhedkar offloading shares of up to Rs 100 crore.

The company intends to utilise the proceeds from the fresh issue to the extent of Rs 625.5 crore for funding working capital requirements. Vikran Engineering will use the remaining amount for general corporate purposes.

Bigshare Services is the registrar for the public issue of Vikran Engineering, while Pantomath Capital Advisors and Systematix Corporate Services are the book-running lead managers.

Vikran Engineering is one of the fast-growing Indian Engineering, Procurement & Construction (EPC) companies and provides end-to-end services from conceptualization, design, supply, installation, testing, and commissioning on a turnkey basis. It follows an asset-light model by executing more orders with lower investment in fixed assets.

As of August 31, 2024, Vikran Engineering had executed work across 22 states and successfully completed 44 projects across 11 states, with 34 ongoing projects across 17 states. As per the DRHP, the company’s order book grew from Rs 517.34 crore in FY22 to Rs 2,114.80 crore in FY24.

Some of Vikran Engineering' clients include NTPC, Power Grid Corporation of India, South Bihar Power Distribution Co., North Bihar Power Distribution Co., Transmission Corporation of Telangana, Madhya Pradesh Power Transmission Company, Madhya Pradesh Madhya Kshetra Vidyut Vitran Company, District Water and Sanitation Mission (PHED), and State Water and Sanitation Mission (SWSM).