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Rs 772 Crore Vikran Engineering IPO Set to Kick Off With 18% Grey Market Premium

Swarnadwip Nath Published Aug 25, 2025, 05:07 PM Updated Sep 17, 2026, 05:40 AM

Vikran Engineering Limited is set to open its much-anticipated Initial Public Offering (IPO) on August 26, 2025. The book-building issue, priced between Rs 92 and Rs 97 per equity share with a face value of Rs 1, aims to raise approximately Rs 772 crore. The IPO will close on August 29, 2025, with a tentative listing date of September 3, 2025, on both BSE and NSE. This detailed guide covers crucial information investors need to know about the offering, including grey market trends, issue structure, company background, and financial health.

Key Highlights Of The IPO

Vikran Engineering IPO is a book-built issue comprised of a fresh issue of 7.43 crore shares and an offer for sale (OFS) of 0.53 crore shares aggregating to Rs 772 crore.

The price band is fixed at Rs 92 to Rs 97 per share, with a minimum application lot size of 148 shares, translating to an investment starting at approximately Rs 13,600.

The IPO proceeds are primarily earmarked for meeting working capital requirements and other general corporate purposes.

The grey market premium (GMP) currently stands around Rs 18, indicating the potential listing price near Rs 115, suggesting an estimated listing gain of about 18-20%.

Subscription And Investor Category Allocation

Qualified Institutional Buyers (QIBs) are allocated up to 50% of the issue size.
Retail investors have a minimum reserved quota of 35%.
Non-Institutional Investors (NIIs) will get not less than 15%.

The IPO opens for subscription on August 26 and closes on August 29, with allotment finalization on September 1 and refunds starting September 2.

Business Overview And Market Position

Vikran Engineering Limited, incorporated in 2008 and headquartered in Thane, Maharashtra, is a well-established player in the Engineering, Procurement, and Construction (EPC) sector. The company focuses on turnkey infrastructure projects across power transmission lines up to 765 kV, substations, water supply systems, and railway electrification. With operational presence across 17 Indian states, Vikran boasts a robust project portfolio including completed projects and several ongoing engagements with government and public sector clients such as NTPC Limited and various state power distribution companies.

Financial Performance And Growth Potential

The company reported a revenue increase of 17% from Rs 791.44 crore in FY2024 to Rs 922.36 crore in FY2025.

Profit After Tax (PAT) rose by 4% from Rs 74.83 crore to Rs 77.82 crore over the same period, reflecting steady financial health.

Vikran Engineering has shown consistent growth with a five-year CAGR in sales of 19% and over 80% CAGR in net profit, indicating strong operational execution and margin expansion.

Grey Market Premium And Listing Expectations

Vikran Engineering’s IPO is witnessing positive traction in the grey market, with shares trading at Rs 18 premium over the upper price band of Rs 97, suggesting an estimated listing price around Rs 115 per share. This premium points towards healthy investor sentiment and potential listing gains. However, investors should consider grey market prices as indicative and subject to market volatility.

Risks And Considerations

As with any IPO, market risks and sectoral volatility may impact post-listing stock performance.

EPC industry is competitive and exposed to regulatory, project execution, and funding risks.

Investors should evaluate growth prospects alongside risks and conduct their due diligence.

Important Dates To Remember

IPO Open Date: August 26, 2025
IPO Close Date: August 29, 2025
Allotment Date: September 1, 2025
Refund Initiation: September 2, 2025
Listing Date: September 3, 2025

Conclusion

Vikran Engineering’s Rs 772 crore IPO presents investors with an opportunity to participate in a steadily growing EPC company with diversified project execution across critical infrastructure sectors. The attractive price band coupled with healthy grey market premium signals strong market interest. Careful evaluation of fundamentals and market conditions is crucial for making informed investment decisions in this debut offering.

Source: Univest, Moneycontrol, Economic Times, Angel One, InvestorGain

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