Vikran Engineering IPO: What Investors Need to Know Ahead of the Issue Launch
The initial public offering (IPO) of Vikran Engineering, set to open for bidding on Tuesday, August 26, is commanding a decent grey market premium (GMP). The company aims to raise ₹772 crore from the issue, with the price band fixed at ₹92–97 per share.
IPO Details
The issue comprises a fresh issue of 7.43 crore shares aggregating to ₹721 crore and an offer for sale of 0.53 crore shares aggregating to ₹51 crore.
Grey Market Premium
Ahead of the bidding, the shares are trading at a GMP of ₹22 per share, indicating strong investor sentiment. If the momentum holds steady throughout the bidding period, the stock may debut on Indian exchanges with healthy gains. Based on the upper price band of ₹97, the ₹22 GMP suggests a potential listing price of around ₹119, a 22.7% premium over the IPO price.
Investor Categories and Lot Size
For retail investors, the lot size has been set at 148 shares, requiring a minimum investment of ₹13,616 per lot. For small non-institutional investors (sNII), the minimum is 14 lots (2,072 shares) amounting to ₹2,00,984, while for big non-institutional investors (bNII), it is 70 lots (10,360 shares) amounting to ₹10,04,920.
About Vikran Engineering
According to the company’s RHP, Vikran Engineering is among the fastest-growing Indian Engineering, Procurement, and Construction (EPC) firms in terms of revenue growth over FY23–25, outperforming industry growth estimates and its peer group.
The company has a diversified project portfolio, with the majority of revenue coming from energy and water infrastructure. It provides end-to-end services, including conceptualisation, design, supply, installation, testing, and commissioning on a turnkey basis, and has a presence across multiple sectors such as power, water, and railway infrastructure.
Company’s Project Portfolio
Within the power sector, the company has a presence in both transmission and distribution. In the water sector, its projects include underground pipelines. In the railway segment, it undertakes 132 kV traction substation projects and underground EHV cabling projects.
Use of Proceeds
The company proposes to use the proceeds to fund working capital requirements and for general corporate purposes.
Book Running Lead Manager and Registrar
Pantomath Capital Advisors Pvt. Ltd. is the book-running lead manager, while Bigshare Services Pvt. Ltd. is the registrar of the issue.
Allotment and Listing
The allotment is likely to be finalized on Monday, September 1, and the shares are scheduled to list on both NSE and BSE on Wednesday.
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