IPO Details
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Schedule of Vikran Engineering Ltd
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Allotment of bids
Refund Initiation
Listing on exchange
About Vikran Engineering Limited IPO
Vikran Engineering Limited IPO is an IPO aggregating up to ₹1,000 crores. It consists of an offer for sale aggregating up to ₹100 crores and a fresh issue aggregating up to ₹900 crores. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.
Objective of Vikran Engineering Limited IPO
- Funding the working capital requirements of the company.
- General corporate purposes.
Vikran Engineering Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | Aggregating up to ₹100 crores |
Fresh Issue | Aggregating up to ₹900 crores |
EPS (₹) For the year ended March 31, 2024 | 4.92 |
Vikran Engineering Limited IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs Share Offered | Not more than 50% of the Issue |
Non-Institutional Bidders (NIBs) | Not less than 15% of the Issue |
Retail Individual Investors | Not less than 35% of the Issue |
Industry Outlook
There is a significant shift in the landscape of different sectors including roads, railways, power, water, building construction and industrial construction by key EPC players. Indian EPC industry is supported by India’s economic growth backed by government initiatives and the availability of skilled labour at low costs.
The share of infrastructure projects is expected to increase to 66-68% of the overall investments for the fiscals 2025-29 as against 62% in the past five years (fiscal 2019-24), as infrastructure investments are expected to see faster growth than the other two segments (building construction and industrial) due to the Government's focus on Infrastructure under the National Infrastructure Pipeline (NIP), National Monetisation Pipeline (NMP) and the Gati Shakti initiative. The Central government's focus on roads, urban infrastructure and railways will boost infrastructure investments. At an investment level, investments in the infrastructure sector are expected to be 1.7x during fiscals 2025-29 compared to fiscals 2019-24.
Indian power EPC sector has witnessed strong growth over the last few years, driven by the increasing demand for electricity, government initiatives, and rising investments in the sector.Investments of ₹ 23-24 lakh crore are expected in the power sector over fiscals 2025 to 2029. Generation segment to drive investments with large-scale clean energy additions expected, followed by distribution and transmission investments
Company Information
Vikran Engineering Limited is one of the fast-growing Indian Engineering, Procurement and Construction (EPC) companies. They have a diversified project portfolio, with majority revenue generated from energy and water infrastructure verticals (contributing 49% each) which have a high growth potential in the medium term. They provide end-to-end services from conceptualisation, design, supply, installation, testing and commissioning on a turnkey basis and have their presence across multiple sectors including power, water, and railway infrastructure.
Vikran Engineering Ltd Strengths
One of the fast-growing engineering, procurement and construction (EPC) companies, with timely execution of power transmission, distribution and water infrastructure sector.
As of August 31, 2024, they have completed 44 projects across 11 states with a total executed contract value of ₹1,895.81 crores. As of August 31, 2024, they have 34 ongoing projects across 17 states, aggregating orders of ₹3,957.06 crores, of which unexecuted Order Book is ₹1,955.70 crores. At the same time, the company has built 10EHV substations of up to 765kV.
In fiscal 2024 they have executed projects worth ₹3,87.33 crores in water infrastructure vertical. As on August 31, 2024, they had an order Book of ₹8,44.904 crores under water infrastructure vertical.
Diversified Order Book across business verticals and consistent financial performance.
Their order book has grown from ₹517.35 crores as of March 31, 2022, to ₹2,045.79 crores as of March 31, 2023, ₹2,114.80 crores as of March 31, 2024. Their order book is diversified across business verticals including power transmission and distribution, water infrastructure, and railway infrastructure. Further, they have a presence in all the power transmission and distribution segments, which helps their order book to remain diversified within the power sector as well.
Pan India presence with a strong supply chain.
In their journey so far, they have executed work across 22 states, of which they are currently executing projects in 17 states.
With a pan-India presence supported by 195 sites and store locations as of August 31, 2024, they offer a range of EPC services that cater to the specific needs of their customers across the country.
Risks of Vikran Engineering Limited IPO
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They rely on third-party logistics providers for transportation of their products and machines to the project site or distribution to their customers. Any delay or disruption or refusal by their third-party logistics providers in timely delivery of their products may affect their business, results of operations and cash flow adversely.
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Fluctuation in 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, may have a material adverse effect on their business, financial condition, results of operations and cash flows.
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Their business is driven by a diversified mix of tenders from government authorities, public sector undertakings, and private sectors, which account for approximately 46.45%, 21.03% and 32.52% of their revenue in FY2024. However, delays or a lack of tenders from government entities, along with adverse changes in government policies, could materially impact their business through contract foreclosures, terminations, restructurings, or renegotiations, affecting their operations and financial performance
All Financial Information about Vikran Engineering Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | Vikran Engineering | Bajel Projects | Kalpataru Projects |
|---|---|---|---|
Revenue from Operations for the year ended March 31, 2024 (₹ in crores) | 785.948 | 1169.212 | 19626.430 |
P/E | - | 689.32 | 42.11 |
EPS (Basic) (₹) | 4.92 | 0.37 | 31.37 |
Return on Net Worth (%) | 25.69% | 0.76% | 10.09% |
NAV per share (₹) | 17.20 | 49.11 | 314.74 |
Anchor Investor Information
IPO Registrar and Book Running Lead Managers
Book running lead managers:
Pantomath Capital Advisors Private Limited Systematix Corporate Services Limited
Registrar for the IPO is Bigshare Services Private 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
Besides having the fastest growth in profitability, with a 236.94% CAGR growth in PAT and 130.02% CAGR growth in EBITDA between fiscal 2022 to 2024, they have the highest Return on Equity (ROE) and Return on Capital Employed amongst their peer group.
They have been increasing their revenues and expanding their order book. Their revenue from operations grew at a CAGR of 28.74% from ₹474.21 crores in fiscal 2022 to ₹785.95 crores in fiscal 2024 and their PAT increased at a CAGR of 236.94% from ₹6.59 crores in fiscal 2022 to ₹74.83 crores in fiscal 2024.
Company Market Position
The company is one of the fast-growing Indian Engineering, Procurement and Construction (EPC) company. They have successfully executed projects for government entities, public sector undertakings and private companies. As of August 31, 2024, the company has completed 44 projects across 11 states with a total executed contract value of ₹1,895.81 crores. As of August 31, 2024, they have 34 ongoing projects across 17 states, aggregating orders of ₹3,957.06 crores, of which the order book is ₹1,955.70 crores.
Vikran Engineering Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from operations (₹crores) | 474.212 | 524.305 | 785.948 |
Profit/ loss Before Tax (₹ crores) | 9.356 | 53.978 | 102.746 |
Net profit / (loss) (₹ crores) | 6.591 | 42.840 | 74.831 |
EBITDA (₹ crores) | 25.194 | 79.714 | 133.295 |
EPS (₹) | 0.45 | 2.89 | 4.92 |
Company Cash Flow
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit/(loss) before tax (₹crores) | 9.356 | 53.978 | 102.746 |
Net Cash from Operating Activities (₹ crores) | 18.987 | 5.551 | (66.477) |
Net Cash from Investing Activities (₹ crores) | (5.243) | (14.322) | (15.936) |
Net Cash from Financing Activities (₹ crores) | (17.274) | 8.754 | 82.371 |
Cash and Cash Equivalents (₹ crores) | 0.140 | 0.123 | 0.081 |
How To Check Allotment Status of Vikran Engineering Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Bigshare Services Private Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Vikran Engineering Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Bigshare Services Private Limited website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Vikran Engineering Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Vikran Engineering Ltd IPO FAQs
What is the Vikran Engineering Limited IPO?
The Vikran Engineering Limited IPO has an issue size aggregating up to ₹1,000 crores. The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Vikran Engineering Limited IPO?
Bigshare Services Private Limited is the registrar for this IPO.
Where can I read more about Vikran Engineering Limited business?
You may read more about Vikran Engineering Limited and its IPO from the company’s draft red herring prospectus (DRHP) here
