Vikran Engineering Limited, a Thane-based Engineering, Procurement, and Construction (EPC) firm, had a subdued listing on Wednesday, September 3, with its shares opening at a modest premium over the IPO price.
The listing comes after the company’s ₹772 crore Initial Public Offering (IPO) received a strong subscription from investors, particularly from Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs).
Vikran Engineering IPO Listing Performance
The shares of Vikran Engineering were listed on both the BSE and NSE. On the BSE, the stock opened at ₹99.70, a premium of 2.78% to the issue price of ₹97 per share.
On the NSE, it listed at ₹99, a 2.06% premium. The listing was slightly below the expectations hinted at by the Grey Market Premium (GMP), which had suggested a listing price in the range of ₹104-₹105.
Vikran Engineering IPO Details and Subscription Status
The IPO, which ran from August 26 to August 29, was a book-building issue with a price band of ₹92 to ₹97 per share. It was met with an enthusiastic response from investors, being oversubscribed a total of 24.87 times. The NII portion saw a remarkable subscription of 61.77 times, while the QIB segment was subscribed 20.51 times. Retail investors also showed strong interest, with their portion being booked 11.56 times.
The IPO comprised a fresh issue of shares worth ₹721 crore and an Offer for Sale (OFS) of ₹51 crore. The company plans to use the proceeds from the fresh issue primarily for working capital requirements and general corporate purposes.
Company Profile and Financials
Founded in 2008, Vikran Engineering is an EPC company with a diversified portfolio across power transmission and distribution, water infrastructure, railway projects, and solar energy. The company boasts a strong order book of over ₹2,442 crore as of June 30, 2025, providing a clear revenue visibility for the coming years.
Financially, the company has shown consistent growth. Its revenue from operations grew by 17% to ₹922 crore in the financial year ending March 2025, with net profit climbing to ₹77.8 crore. Analysts have highlighted the company’s asset-light business model and strong execution track record as key strengths.
Expert Outlook
Despite the muted listing, experts believe the stock’s performance should be viewed as a long-term play on India’s booming infrastructure sector. The government’s continued focus on initiatives like the National Infrastructure Pipeline and the Jal Jeevan Mission is expected to provide strong tailwinds for the company’s growth. Investors are advised to focus on the company’s ability to execute its large order book and manage its working capital efficiently for sustained value creation.
F.A.Q.
– What was the IPO price band and issue size?
The IPO was a book-building issue with a price band of ₹92 to ₹97 per share. The company raised ₹772 crore through a combination of a fresh issue of shares and an offer for sale (OFS) by existing shareholders.
– How was the IPO subscribed by investors?
The IPO received a strong response from investors, being oversubscribed a total of 24.87 times. The Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) portions were heavily subscribed at 20.51 times and 61.77 times, respectively, while the retail portion was booked 11.56 times.
– What does Vikran Engineering do?
Vikran Engineering is an Engineering, Procurement, and Construction (EPC) company. It specializes in executing large-scale projects across various sectors, including power transmission and distribution, water infrastructure, railway projects, and solar energy.
– How will the company use the funds raised from the IPO?
The company plans to use the proceeds from the fresh issue component of the IPO primarily for meeting its working capital requirements and for general corporate purposes.
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