Vikran Engineering IPO opens: Analysts suggest long-term buy; here's why

Vikran Engineering IPO: The initial public offering (IPO) of Engineering, Procurement, and Construction (EPC) company Vikran Engineering opens for public subscription on August 26, 2025. At the upper end of the price band of ₹92 to ₹97, the company aims to raise ₹772 crore. The issue comprises a combination of 74.3 million equity shares amounting to ₹721 crore and an offer for sale (OFS) of 5.3 million shares amounting to ₹51 crore. Rakesh Ashok Markhedkar is the promoter selling shareholder. 

 

On Monday, August 25, the company raised ₹232 crore from anchor investors. Vikran Engineering has allotted 23.87 million equity shares at ₹97 per share to a group of 14 anchor investors, according to an exchange filing. Bank of India Mutual Fund, ITI Mutual Fund, Nippon India, LC Pharos Multi-Strategy Fund, SBI General Insurance Company, Samco Mutual Fund, 360 ONE, IMAP India, and Societe Generale were among the 14 investors who participated in the anchor book.

 

Vikran Engineering IPO grey market premium (GMP)

The unlisted shares of Vikran Engineering were trading at ₹118 in the grey market, up ₹21 or 21.65 per cent from the upper end price, according to sources tracking unofficial market activities.

Vikran Engineering IPO: Should you apply or not?

Anand Rathi Research - Subscribe for long term

Analysts at Anand Rathi believe that Vikran Engineering has a strong order book of over ₹2,000 crore (2x of FY25 revenues), which gives the company growth visibility for the next two years. Given the government's focus on recycling the water and its push on power infrastructure, the company is well-positioned to capitalise on future tenders. 

 

"On the valuation front, based on annualised FY25 earnings, the company is seeking a P/E of 32.1 times, and a post-issue market capitalisation of approximately ₹25,017 million, making the issue appear fully priced," the brokerage said in a note.

 

With a consistent track record of executing large-scale projects along with an asset-light model for marquee government and public sector clients and PAN India presence, Vikran Engineering is well-positioned to capitalise on opportunities in the high-growth infrastructure sector, it added.

 

Anand Rathi has assigned a 'Subscribe for long term' rating to the IPO, citing scalability, financial strength, and sectoral tailwinds.   ALSO READ | Key strengths and risks you must know about Vikran Engineering IPO

Arihant Capital - Subscribe

According to analysts at Arihant Capital, Vikran Engineering presents a promising outlook as it gears up for its IPO, leveraging its established position as a fast-growing EPC player with a diversified order book across power transmission, water infrastructure, and railway sectors. 

 

"The company’s strategic focus on capitalising on government initiatives like the Revamped Distribution Sector Scheme and Jal Jeevan Mission, coupled with its asset-light model and pan-India presence, positions it well to benefit from India’s infrastructure boom," the brokerage said. 

 

At the upper band of ₹97, the issue is valued at a P/E ratio of 32.15x, based on PAT of FY25 EPS of ₹3. Arihant Capital recommended a 'Subscribe' rating for the Vikran Engineering IPO. 

Here are the key details of Vikran Engineering IPO:

Vikran Engineering IPO is available at a price band of ₹92 to ₹97 per share, with a lot size of 148 shares. Accordingly, investors can bid for a minimum of one lot or 148 shares of Vikran Engineering, in multiples thereof.

 

The minimum amount required by a retail investor to bid for the IPO is ₹14,356 at the upper end price. A retail investor can bid for a maximum of 13 lots or 1,924 shares, amounting to ₹1,86,628.

 

The three-day subscription window to bid for the issue will conclude on Friday, August 29, 2025. Following the closure of the subscription window, the basis of allotment of shares is likely to take place on Monday, September 1, 2025. Shares of Vikran Engineering are scheduled to make their D-street debut on Wednesday, September 3, by listing on the BSE and NSE.

 

Bigshare Services is the registrar of the issue. Pantomath Capital Advisors and Systematix Corporate Services are the book-running lead managers.

 

According to the red herring prospectus (RHP), the company plans to utilise the net fresh issue proceeds for funding working capital requirements and general corporate purposes.