Vikran Engineering Secures ₹231.6 Crore from Anchor Investors as ₹772 Crore IPO Opens Today

New Delhi, August 26, 2025 – Infrastructure EPC player Vikran Engineering Ltd has mobilised ₹231.6 crore from anchor investors, ahead of its initial public offering (IPO) launch today. The issue, aggregating up to ₹772 crore, will remain open for subscription until August 29.

The company allotted 2.38 crore equity shares at the upper price band of ₹97 per share to 14 institutional investors in the anchor book. Key participants included Bank of India Mutual Fund, ITI MF, Samco MF, SBI General Insurance, IMAP India, Bengal Finance and Investment, VPK Global, and Societe Generale.

IPO Snapshot

Vikran Engineering IPO will open for subscription today, i.e., on Tuesday, August 26, 2025 (today), and close on Friday, August 29, 2025. Vikran Engineering has fixed the price band at ₹92 to ₹97 per share.

The total issue size is ₹772 crore. Of this, the fresh issue component is around ₹721 crore, while the offer for sale (OFS) accounts for about ₹51 crore.

Post-issue, the shares will be listed on both the BSE and NSE. Pantomath Capital and Systematix Corporate are acting as the lead managers to the issue. Bigshare Services has been appointed as the registrar.

Financial Performance

Vikran Engineering’s revenue (FY25) was recorded at ₹916 crore, up 16.5% YoY from ₹786 crore in FY24. Profit After Tax (FY25) recorded at ₹78 crore, up 4% YoY from ₹75 crore in FY24. Proceeds from the fresh issue will be primarily used for working capital requirements (₹541 crore), with the balance for general corporate purposes.

Anchor & Promoter Details

The IPO comprises a fresh issue of ~₹721 crore and an OFS of ~₹51 crore by the promoter. Pre-issue, the company is backed by marquee investors; post-issue promoter holding will reduce in line with the OFS dilution.

What to Watch?

Vikran Engineering has a strong order book, steady revenue growth, operations across multiple states, and the support of marquee investors. When it comes to the risks (from RHP), it has a high dependence on working capital and borrowings to fund large projects, and operates in a competitive EPC market with pressure on margins. And the project execution risks, including delays and cost overruns, are also considered.

Founded in Mumbai, Vikran Engineering is a fast-growing Engineering, Procurement and Construction (EPC) company providing turnkey services including design, supply, installation, testing, and commissioning.

As of June 30, 2025, it has successfully executed 45 projects across 14 states, worth ₹1,920 crore, and currently manages 44 ongoing projects across 16 states, with an order book of ₹5,120 crore. The company earlier attracted notable pre-IPO investors, including Ashish Kacholia, Mukul Aggarwal, and The Wealth Company, further strengthening investor confidence.

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