Vikran Engineering IPO

About Vikran Engineering IPO

The offer consists of both a fresh issue and an offer for sale component. The fresh issue will include up to 7,43,29,896 equity shares of face value of ₹1 each aggregating up to ₹721 crore. The offer for sale portion includes up to 52,57,731 equity shares of face value of ₹1 each aggregating up to ₹51 crore. The total number of shares and aggregate amount are 7,95,87,627 shares aggregating up to ₹772 crores.

Vikran Engineering Limited 's key competencies encompass in-house design and engineering and timely project execution. They have successfully executed projects for government entities, public sector undertakings and private companies. Their focus on operational excellence and an efficient cost structure has enabled them to deliver high-value projects that meet stringent regulatory and quality standards (Source: CRISIL Report). As of 30 June 2025, they have successfully completed 45 projects across 14 states. As of 30 June 2025, they have 44 ongoing projects across 16 states.

Objectives of Vikran Engineering IPO

• Funding the working capital requirements of the company.
• General corporate purposes.

Industry Outlook

The transmission sector, a crucial part of the power industry, required more attention to meet the growing demand for electricity and the expanding generation capacity. Existing investments from budgets, internal funds, and PSU loans were insufficient to meet this demand. To address this issue, the Electricity Act allowed private companies to participate in the power transmission sector through a competitive bidding process called tariff-based competitive bidding (TBCB). The National Tariff Policy of 2006 provided guidelines for this process, aiming to promote competition, attract private investment, and increase transparency in constructing transmission infrastructure. India stands out as one of the few countries that have opened its transmission sector to private participation, generating significant interest from private businesses.

In the case of water supply projects, more than 95% of project investments happen via the EPC route. Considering wastewater treatment and water supply projects together, it is estimated that 80-90% of investments in the sector happen via the EPC route, while the rest happen via public private partnership (PPP) (Source: CRISIL Report).

Vikran Enginnering Company Information

Vikran Engineering Limited is one of the fast-growing Indian Engineering, Procurement and Construction (EPC) companies in terms of revenue growth over FY23-25, compared to the average industry growth estimates and the peer set considered (Source: CRISIL Report). While they are relatively smaller in terms of revenue from operations in comparison to the listed industry peers, their revenue from operations grew at a CAGR of 32.17% from ₹524.31 crore in fiscal 2023 to ₹915.85 crore in fiscal 2025, based on their Restated Financial Information.

They have a diversified project portfolio, with a majority of their revenue from energy and water infrastructure verticals. They provide end-to-end services from conceptualisation, design, supply, installation, testing and commissioning on a turnkey basis and have a presence across multiple sectors including power, water, and railway infrastructure. Within the power sector, they have a presence in both power transmission and power distribution. In the water sector, their projects include underground water distribution and surface water extraction, overhead tanks, and distribution networks.

The company also has experience in Solar EPC for ground-mounted solar projects and smart metering (Source: CRISIL Report). Also, as a part of their railway projects, they undertake 132 kV traction substation projects and underground EHV cabling projects.

Strengths of Vikran Engineering IPO

• One of the fast-growing engineering, procurement and construction (“EPC”) companies, with timely execution in the power transmission and distribution and water infrastructure sectors.
• A diversified order book across business verticals and consistent financial performance.
• Pan-India presence with a strong supply chain.
• They follow an asset-light model by executing more orders with relatively lower investment in fixed assets.
• In-house technical and engineering capabilities, process control and quality assurance.
• Experienced promoters and management team, with strong domain knowledge.

Risks of Vikran Engineering IPO

• Failure to complete their projects within the contractual time may and Failure to qualify for, complete or win new contracts.
  
• Delays or a lack of tenders from government entities, along with adverse changes in government policies.
  
• Significant social, political, or economic changes in the power transmission and distribution sector and water infrastructure sector.
  
• Inability to accurately estimate costs may lead to a reduction in the expected rate of return and profitability estimates.
  
• Increased competition and aggressive bidding by existing competitors and new entrants in both the public and private sectors.
  
• Delays in the acquisition of private land or rights of way, eviction of encroachments, environmental clearances for the projects or resolution of associated land issues, which are attributable to their customers.
  
• The EPC industry in India has faced criticism for its impact on the environment, particularly in terms of waste generation and energy consumption.
  
• Changes in regulations, such as safety standards and building codes, and associated compliances could result in increased compliance costs, delays in project execution, or changes to project scope and design.
  
• Any delay, disruption or refusal by their third-party logistics providers in the timely delivery of their products.
  
• Fluctuation in the cost of raw materials or any shortages, delay or disruption in the supply of the raw materials they use in their manufacturing process due to factors beyond their control.
  

Source: All the financial information for listed industry peers mentioned above is on a consolidated basis (unless otherwise available onlyon standalone basis) and is sourced from the annual reports / annual results of the respective company for the financial year ended March 31, 2025 as available on websites of stock exchanges.

Notes: 1) Basic/diluted earnings per share refers to the basic/diluted earnings per share sourced from the financial statements of the respective peer group companies for the financial year ended March 31, 2025. 140 2) Net asset value per share represents Net assets divided by total number of shares at the end of the year. Net assets is Total assets minus Current Liability minus Non-current liability minus Capital reserve minus Foreign currency translation reserve minus non-controlling interest. Total number of shares at the end of the year is the number of equity shares outstanding at the end of the year plus weighted average number of potential equity shares on account of compulsory convertible preference shares / Share pending issue. 3) Price/earnings ratio for the peer group has been computed based on the closing market price of equity shares on stock exchanges as on August 14, 2025, divided by the earnings per share for financial year ended March 31, 2025. 4) Return on Net Worth is calculated as Net profit for the period / year as a percentage of Net worth.

Anchor Investor Bidding Date: 25 August 2025*

*The Company, in consultation with the BRLMs, may consider participation by Anchor Investors, in accordance with the SEBI ICDR Regulations. The Anchor Investor Bid/Offer Period shall be one Working Day prior to the Bid/ Offer Opening Date.

Registrar: Bigshare Services Private Limited
Book Running Lead Managers:
Pantomath Capital Advisors Private Limited Systematix Corporate Services Limited

Business Model

The company earns its revenue through the following sources:

Providing a comprehensive range of service offerings in the EPC space for a diversified portfolio of businesses like power transmission and distribution including substation projects; and water infrastructure and railway projects.

Company Growth Trajectory

Vikran Engineering Limited’s total income increased by 16.54% to ₹922.36 crore for fiscal 2025 from ₹791.44 crore for fiscal 2024. This increase was primarily due to an increase in revenue from operations, which was primarily driven by an increase in income from engineering, procurement and construction (EPC) services.

Their revenue from operations increased by 16.53% to ₹915.85 crore for fiscal 2025 from ₹785.95 crore for fiscal 2024. This was primarily attributable to an increase in income from engineering, procurement and construction (EPC) services, primarily due to an increase in the number of projects awarded to them.

Their other income increased by 18.73% to ₹6.52 crore for fiscal 2025 from ₹5.49 crore for fiscal 2024, primarily due to an increase in interest income on bank deposits.

Their restated profit increased by 3.99% to ₹77.82 crore for fiscal 2025 from ₹74.83 crore for fiscal 2024.

Company Market Position

Vikran Engineering Limited is one of the fast-growing Indian Engineering, Procurement and Construction (EPC) companies in terms of revenue growth over FY23-25, compared to the average industry growth estimates and the peer set considered (Source: CRISIL Report).

Among the considered peers, they reported the highest operating EBITDA margin of 17.50% for fiscal 2025; the second highest PAT margin of 8.44% in fiscal 2025; and the second highest Return on Equity (ROE) during fiscal 2025 (Source: CRISIL Report).

As of 31st March, 2025, the company’s Total Income, Profit After Tax, and EBITDA stood at ₹922.364 crores, ₹77.819 crores, and ₹160.235 crores, respectively.

How to apply for Vikran Engineering IPO?

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.

How to check the allotment status of Vikran Engineering IPO?

1. Visit the Registrar's Website
To check the IPO allotment status for Vikran Engineering Limited IPO, visit the official website of Bigshare Services Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.

2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to the BSE website and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps

• Select 'Equity' from the dropdown menu
• Choose 'Vikran Engineering Limited' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search'

Your Vikran Engineering Limited IPO allotment status will be displayed.

3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Vikran Engineering Limited IPO allotment status.

Go to the NSE website and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Application number
• PAN

Then click 'Submit'. Your Vikran Engineering IPO bid and allotment details will be displayed.