Vikran Engineering IPO

Company Overview:

Incorporated in 2008, Vikran Engineering Limited is an Engineering, Procurement, and Construction (EPC) company operating across multiple infrastructure sectors. The company has delivered projects in power transmission & distribution, water infrastructure, railway development, and solar energy solutions.

As of June 30, 2025:

• Completed Projects: 45 projects across 14 states with a total executed contract value of ₹19,199.17 million.

• Ongoing Projects: 44 projects across 16 states worth ₹51,202.07 million, with an active order book of ₹24,424.39 million.

Its prestigious clientele includes NTPC Limited, Power Grid Corporation of India Limited, South Bihar Power Distribution Co. Ltd., North Bihar Power Distribution Co. Ltd., Transmission Corporation of Telangana Limited, and other state utilities.

Objects of the Issue:

• Funding working capital requirements – ₹541.00 crore

• General corporate purposes – ₹180.00 crore

Strengths of Vikran Engineering:

1. Diversified Operations Across Key Sectors

Strong presence in power transmission (up to 400kV EHV substations), water distribution, railway infrastructure, and solar EPC, reducing sector-specific dependency.

2. Robust Project Execution Track Record

Successfully delivered 45 projects across 14 states and managing 44 ongoing projects across 16 states – showcasing execution capability and geographic reach.

3. Strong Government & PSU Client Base

Long-standing relationships with reputed government and public sector undertakings ensure credibility and repeat business.

4. Healthy Order Book Position

A sizeable order book of ₹24,424.39 million provides revenue visibility and growth momentum in the near to medium term.

5. Financial Growth Backed by Investor Confidence

Demonstrated strong sales and profit CAGR over the past five years, further supported by successful pre-IPO fundraising of over ₹100 crore.

Risks & Challenges:

1. High Dependence on Government Contracts

Majority of revenue depends on government projects, exposing the business to policy shifts, budgetary allocations, and payment delays.

2. Working Capital Intensive Business

EPC operations require significant upfront investment, which could strain liquidity during project execution phases.

3. Execution & Regulatory Risks

Project delays due to land issues, approvals, or regulatory compliance may impact profitability and timelines.

4. Client Concentration Risk

A significant portion of revenue comes from a few large government contracts, which could affect stability if project inflows slow down.

Vikran Engineering IPO: Key Details

• IPO Dates: 26 to 29 Aug 2025

• Price Band: ₹92 – ₹97

• Lot Size: 148 Shares

• Total Issue Size: 772.00 Cr

• Retail Quota: 35%

• GMP: 10% (only for information)
  

Allotment Link

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