Vikran Engineering IPO opens on Aug 26: Key risks, strengths you must know

Vikran Engineering has a robust and diversified order book across business verticals including power transmission and distribution, according to RHP

Vikran Engineering IPO: The initial public offering (IPO) of Engineering, Procurement, and Construction (EPC) company Vikran Engiineering will open for bidding on Tuesday, August 26, 2025. The public issue worth ₹772 crore comprises a fresh issue of ₹74.3 million equity shares aggregating to ₹721 crore and an offer for sale (OFS) of 5.3 million shares aggregating to 51 crore. Rakesh Ashok Markhedkar is the promoter selling shareholder.  

 

The three-day subscription window is scheduled to close on Friday, August 29, 2025. Vikran Engineering IPO is available at a price band of ₹92-97 per share, with a lot size of 148 shares. 

 

 

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

Here are the key strengths of Vikran Engineering IPO, as outlined in the RHP:

Robust order book: According to the RHP, Vikran Engineering has a robust and diversified order book across business verticals including power transmission and distribution, water infrastructure, and railway infrastructure. The company's order book stood at ₹2,044.31 crore as of March 31, 2025. 

 

Diversified business segments: The company provides end-to-end services from conceptualisation, design, supply, installation, testing and commissioning on a turnkey basis and has presence across multiple sectors including power, solar, water, and railway infrastructure. Its key competencies include inhouse design and engineering and timely project execution.

 

Consistent financial growth: Vikran Engineering's revenue from operations grew at a CAGR of 32.17 per cent from ₹524.3 crore in fiscal 2023 to ₹915.84 crore in fiscal 2025. Its profit for the year, calculated on the basis of Restated Financial Information, increased from ₹42.84 crore in fiscal 2023 to ₹77.81 crore in fiscal 2025 at a CAGR of 34.78 per cent.  

 

Asset-light model: The company executes more orders with relatively lower investment in fixed assets. It takes equipments on rent from third party lessors of equipment across various states to meet the requirements as per project needs. This helps the company to reduce the fixed costs and make the execution of projects cost and logistics efficient.  CHECK MANGAL ELECTRICAL INDUSTRIES IPO ALLOTMENT HERE

Here are the key risks associated with investing in Vikran Engineering IPO:

Government dependency: According to the RHP, the company's business is driven by government authorities, public sector undertakings, and private sectors, which account for around 61.7 per cent, 18.41 per cent, and 19.86 per cent respectively of its revenue for fiscal 2025. So, delays or a lack of tenders from government entities, along with adverse changes in government policies, could materially impact its business.

 

Working Capital Intensive: The company's trade receivables, current assets and inventories, form a substantial part of its current assets and net worth. Failure to manage the same could have an adverse effect on its profitability, cash flow and liquidity.  

  Competitive pressure: Vikran Engineering face competitive pressures from the existing competitors and new entrants in both public and private sector. Hieghtened competition and aggressive bidding by such competitors will likely to impact the company's ability to procure business in future.

 

Execution challenges: The company also said that it has experienced growth in recent years and may be unable to sustain growth or manage it effectively. As per the RHP, the company may not be able to successfully execute its growth strategies, which could affect its business, prospects, results of operations and financial condition.