Vikran Engineering IPO subscribed 2.38 times on Day 1, led by NIIs

The initial public offering (IPO) of Vikran Engineering Ltd was subscribed 2.38 times on the first day of bidding, largely driven by demand from non-institutional investors (NIIs). The public issue received bids for 13,98,02,428 shares against the offered 5,87,39,128 equity shares, at a price band of Rs 92–97, according to BSE data.

On the category-wise subscription front, the NII portion was subscribed 5.15 times, while the retailer portion saw 2.32 times subscription. The qualified institutional buyer (QIB) category was subscribed 0.41 times. The IPO opened for bidding on Tuesday and will close on Friday, August 29, 2025.

Ahead of the issue opening, Vikran Engineering raised Rs 231.60 crore from anchor investors. Institutions participating in the anchor book included Nippon India Equity Opportunities Fund, 360 One Equity Opportunity Fund, Bank of India Mutual Fund, ITI Mutual Fund, SBI General Insurance Company, and Bengal Finance & Investments Pvt Ltd, among others.

Several brokerage firms, including Anand Rathi, Nirmal Bang, Reliance Securities, Deven Choksey, Arihant Capital, Ajcon Global, Adroit Financial, BP Equities, CanMoney Securities, Laxmishree Securities, Marwadi Financial and Ventura Securities, have given a "Subscribe" rating to the IPO. They cited the company's established presence in the EPC segment across power transmission, water and railway infrastructure, along with its robust order book of over Rs 2,000 crore.

The company follows an asset-light business model and has delivered revenue and EBITDA CAGR of 32.2 per cent and 41.8 per cent, respectively, over FY23–25. Its EBITDA margin of 17.5 per cent compares favorably to the industry average of 11 per cent, with return ratios at ROCE 22.1 per cent and ROE 16.6 per cent. The IPO is priced at a P/E of 32.1x and EV/EBITDA of 16.9–17.3x.

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

Vikran Engineering operates across the power, water and railway sectors. In power, it undertakes both transmission and distribution projects; in water, it executes projects such as underground distribution, surface water extraction, overhead tanks and networks. The company currently has 44 ongoing projects across 16 states, with orders aggregating to Rs 5,120.21 crore, including an active order book of Rs 2,442.44 crore.