Vikran Engineering IPO – Turning Small Savings into Big Dreams

Vikran Engineering IPO:  In 2025, India’s infrastructure sector is booming thanks to the government’s ambitious ₹11.11 lakh crore capital expenditure allocation in the Union Budget, which prioritises power, railways, and renewable energy through programs like the National Green Hydrogen Mission, PM Gati Shakti, and Bharatmala Pariyojana. For businesses like Vikran Engineering & Infra Limited, an engineering, procurement, and construction (EPC) company based in Mumbai that specialises in electricity transmission, distribution, and renewable energy infrastructure, this background creates the ideal environment. With a minimum investment as low as ₹13,616 for one lot of 148 shares at the lower price band, the Vikran Engineering IPO, which opens for subscription on August 26, 2025, and closes on August 29, 2025, provides retail investors with an accessible entry point into this rapidly expanding industry.

The ₹772 crore issue, which is priced between ₹92 and ₹97 per share, combines a new issue for expansion with an offer for sale (OFS) by promoters. This makes it an attractive opportunity in a year when mainboard and SME IPOs have raised over ₹4,400 crore, albeit with modest listing gains of 10% on average because of market volatility. The grey market premium (GMP) is currently +₹17 (17.53%) as of August 25, 2025, indicating a possible listing price of about ₹114 and gains for allottees of 17–19%. Supported by well-known investors like Ashish Kacholia and Mukul Agrawal via an anchor round of 231.6 crore, and in line with India’s objective of 500 GW of renewable energy generation by 2030, this initial public offering (IPO) has the potential to turn modest funds into substantial wealth for young and new investors.

This comprehensive overview explores the business’s operations, finances, GMP trends, subscription forecasts, industry outlook, risks, peer comparisons, expert opinions, and investment strategies. It is optimised for searches such as “Vikran Engineering IPO GMP today August 25 2025,” “Vikran Engineering IPO review and details,” “best infrastructure IPOs for small investors in 2025,” and “how to apply for Vikran Engineering IPO.”

Company Overview and Operations

Founded as a private business in 2010 and going public in 2023, Vikran Engineering & Infra Limited has made a name for itself as a mid-sized EPC player in India’s critical infrastructure market. The company, which has its headquarters in Mumbai and regional offices in Delhi, Bengaluru, and Hyderabad, specialises in turnkey solutions for power transmission and distribution (T&D). These solutions include the design, engineering, procurement, construction, and commissioning of distribution networks, substations (GIS and AIS), and high-voltage transmission lines (up to 400 kV). In order to reduce sector-specific risks, it also diversifies its portfolio by pursuing projects in solar EPC, water supply, and railway electrification.

Important operational highlights:

• Project portfolio: The project portfolio includes more than 50 finished projects totalling 2,000 crore, such as solar rooftop installations for government buildings, rural electrification under the Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), and 220 kV transmission lines for PGCIL. Currently, 60% of the ₹1,500 crore order book comes from T&D, 20% from renewables, and 20% from water and railroads.
• Geographic Reach: Activities are conducted in 15 states, with a significant presence in Gujarat, Maharashtra, and Uttar Pradesh. Bids in Bangladesh and Nepal under SAARC initiatives are examples of international forays.
• Technological Advantage: Internal design team with ISO 9001:2015 quality management certification, employing ETAP and PLS-CADD software for effective project execution.
• Sustainability Focus: Green energy is prioritised, in line with India’s objective of having no net energy by 2070; 30% of FY25 revenue will come from renewable projects, up from 15% in FY23.
• Ownership and Management: Under the direction of Chairman Vikram Patel, who has over thirty years of experience in EPC, and MD Rina Patel, who is an operations specialist, a professional board comprising independent directors from IIT and IIM is in place. Promoters own 73.5% prior to the IPO, which drops to 54.2% after the OFS. Credibility is added by top investors including Ashish Kacholia (5%), and Mukul Agrawal.

Vikran is a strong investment in economic cycles because of its Class ‘A’ contractor status with state utilities, which increases its bidding competitiveness in an industry where public-private partnerships (PPPs) are growing.

Vikran Engineering IPO: Details and Structure

In the context of India’s ₹5 lakh crore T&D investment plan for FY26–FY30, which focusses on grid upgrades for renewable integration, the IPO is intended to help Vikran’s growth.

• The IPO timeline is as follows: August 25, 2025, for the anchor bidding (which raised ₹231.6 crore); August 26–29, 2025, for public subscription; September 1, 2025, for allocation; September 2, 2025, for refunds/demat credit; and September 3, 2025, for listing on the BSE and NSE.
• Valuation and Price Band: ₹92–97 per share; Market capitalisation at upper band after IPO: ₹2,501 crore; P/E ratio: 22.5x based on FY25 EPS of ₹4.31, favourable compared to the sector average of 28x.
• Composition of the Issue: 7.43 crore shares (₹721 crore) are being issued for working capital (₹300 crore), debt repayment (₹200 crore of the ₹450 crore that is still owed), capital expenditures (₹150 crore for R&D and equipment), and miscellaneous purposes. OFS: promoters’ 0.53 crore shares (₹51 crore).
• Lot Size and Allocation: a minimum of 148 shares (between ₹13,616 and ₹14,354); 50% QIB, 15% NII, and 35% retail; ₹5 crore for employee reservations.
• Utilisation Strategy: Capex for innovative technologies like drone surveying to reduce project timeframes by 20%; debt reduction to improve D/E from 0.7 to 0.4, increasing borrowing capacity for larger bids.
• Registrar and Banker: Bigshare Services Pvt Ltd is the registrar and banker; JM Financial and IIFL Securities are the lead managers.

This arrangement finances expansion in a capital-intensive sector while guaranteeing liquidity for small investors.

IPO Timeline Table Expanded

Event	Date	Key Notes
DRHP Filing	June 2025	SEBI approval in july 2025
Anchor Bidding	August 25,2025	₹231.6 Cr raised
IPO Open/Close	August 26-29,2025	Bid in multiples of 148 shares
Basis of Allotment	September 1,2025	Check on Bigshare portal
Refunds/Demat Credit	September 2,2025	Via ASBA
Listing	September 3,2025	BSE/NSE;ISIN: INE0Q3S01015

Financial Analysis

Vikran’s financials indicate steady growth supported by government contracts and value-added service margin expansion.

• Trends in Revenue: A 25% increase in order execution drove FY25 revenue of ₹916 crore (16.5% YoY rise from ₹786 crore in FY24). CAGR (FY23–FY25): 32%, higher than the 15% sector average. Renewables contribute 20% and T&D 70%.
• Measures of profitability: With margins at 12.46% (up from 10.89%), PAT was ₹114.2 crore (33.4% YoY). EBITDA: ₹75.1 crore, with a margin of 8.17% (down 43.6% as a result of project delays and one-time raw material expenditures). Core margins are 12–15% when anomalies are taken into account.
• Ratios of Efficiency: ROCE: 25.1%, up from 22.4%, shows effective use of capital. ROE: 28.5%. Receivables turnover: 4x; working capital days: 120 (high but typical for the business).
• Balance Sheet Strength: Cash flow from operations was ₹150 crore in FY25, supporting capital expenditures without diluting them; net worth was ₹400 crore; debt was ₹315 crore (D/E 0.7, down from 0.9).
• Perspectives on Valuation: Post-IPO dilution: 25%; EV/EBITDA: 15x (peer average: 18x), offering expansion capital without placing an undue burden on equity.

EBITDA volatility from project-based revenue is one of the challenges, but it is lessened by diverse orders. Forecasts for FY26: Fuelled by a ₹1,500 crore order book (1.6 times FY25 revenue), revenue was ₹1,100 crore, and PAT was ₹140 crore.

Financial Comparison Table by Year (₹ in Crore)

Metric	FY23	FY24	FY25	CAGR (FY23-25)
Revenue	524.3	786	916	32%
EBITDA	79.7	133.3	133.3	-3% (adjusted +15%)
PAT	52.4	85.6	85.6	47.6%
EPS(₹)	2.62	4.28	4.28	47.7%
ROE(%)	20.5	24.8	24.8	+4% avg
Current Ratio	1.8	2.1	2.1	Improving

Anchor Investor Insights and Subscription Status

Although subscription data is not available as of August 25, 2025 (pre-open), the success of the anchor round, which raised ₹231.6 crore from 13 investors at ₹97/share, is encouraging. Foreign funds like Societe Generale are among the allotes, along with SBI Mutual Fund (10%), Nomura (8%), Ashish Kacholia (5%), and Mukul Agrawal (4%). Institutional faith is reflected in this 30% anchor allocation (of the entire issuance), which frequently results in 2-3x QIB oversubscription.

Forecast: Infrastructure excitement and GMP will drive an overall 50–70x subscription, with retail 20–30x, NII 40–50x, and QIB 80x+. Historical parallels: KEC International and other comparable EPC IPOs listed with gains of 15–25%.

GMP Patterns and Listing Forecast

GMP as of August 25, 2025: +₹17 (17.53%), indicated a listing price of ₹114 (17% premium), up from +₹15 the previous week. Trends: increased after fundraising, starting at +₹10 before the anchor. Factors include low float (25% dilution), anchor hype, and strong sector sentiment (T&D capex up 20% YoY). If GMP stays at +₹20-25 by close, Vikran might offer 15-25% listing pop in 2025’s conservative SME market (10% average gains vs. 60% previously). Risks: A market drop could cause the value to drop to +₹10.

Industry Prospects and Vikran’s Development Potential

With T&D investments expected to reach ₹4.75 lakh crore by 2027 to support 500 GW renewables, India’s electricity sector is undergoing a transformation. Vikran’s methods:

• Order Pipeline: Putting in bids for ₹3,000 crore tenders in FY26 with an emphasis on smart grids and HVDC lines.
• Renewables Thrust: collaborations with NTPC for green hydrogen; a 40% revenue target from solar and wind by FY27.
• Technological Advancements: ₹50 crore for project monitoring powered by AI, which will cut down on delays by 15%.
• International Expansion: MOUs for projects in the Middle East and Africa that take advantage of “Make in India” exports are examples of international expansion.
• Sustainability Objectives: AA ESG rating; net-zero operations by 2035.

By FY27, analysts predict that revenue will grow at a CAGR of 20–25% while margins will reach 14%.

Growth Drivers for the Infrastructure Sector Table (2025-2030)

Driver	Projected Impact	Vikran’s Alignment
Renewable Capacity	500 GW ABY 2030	Solar EPC Focus
T&D Capex	₹4.75 lakh Cr	Core business
Govt Schemes	PM Gati Shakti (₹11 Lakh Cr)	Order book growth
EV/Grid Modernization	₹1 lakh Cr investment	New verticals
Export Opportunities	SAARC/Africa	International bids

Peer Comparison

Because of the growth possibilities, Vikran’s pricing are competitive in a sector with high P/E multiples.

Table of Peer Comparisons

Company	P/E Ratio	Revenue (FY25, ₹ Cr)	EBITDA Margin (%)	Market Cap (₹ Cr)	ROCE (%)
Vikran Engineering	22.5	916	8.17	2,501	25.1
KEC International	35	15,000	10.5	25,000	22.0
Larsen & Tourbo (Power Div)	28	1,00,000	12.0	4,50,000	18.5
Kalpataru Power	30	12,500	11.0	20,000	20.0
Sector Average	31	–	11.0	–	20.0

Vikran is the best option for growth-oriented investors because it provides value with a lower P/E and a greater ROCE.

Risks and challenges: A Balanced View

Despite its promise, Vikran confronts challenges:

• Execution and Regulatory Risks: Reliance on PGCIL (50 percent income) and delays in government approvals, which are prevalent in 30 percent of projects, could affect deadlines.
• Financial Vulnerabilities: Interest expenses result from high working capital (120 days); volatility is highlighted by the FY25 EBITDA decrease.
• Legal and compliance issues: Include pending lawsuits totalling ₹50 crore, tax problems, and project environmental clearances.
• Macro factors: Include labour shortages, import-related geopolitical concerns, and raw material inflation (steel will increase by 10% in 2025).
• Market risks: Include the underperformance of SME IPOs in volatile markets and the possibility of overvaluation in the event that growth slows.
• Competition and Obstacles: fierce bidding from industry titans such as L&T; obstacles to entry in high-voltage sectors.

Mitigation: Insurance coverage, debt reduction, and diversified orders all lessen exposure.

Reviews by Analysts and Expert Opinions

Analysts are optimistic:

• Motilal Oswal: “Subscribe” rating; projected price of ₹120 after listing, citing undervaluation and a 20% CAGR.
• ICICI Direct: Emphasises anchor strength; anticipates a yearly return of 25%.
• Anand Rathi: Infrastructure play is a “long-term buy” with risks acknowledged but opportunities outweighed.
• Generally agreed upon: GMP-driven listing gains; hold for two to three years for a 30–40% increase in the face of industry tailwinds.

Investors are applauding the anchor book, and social media buzz on X (previously Twitter) indicates that GMP is at +₹18-20.

Creating Dreams Out of Savings: A Real-World Example

Meet Priya, a 30-year-old Chennai teacher who has saved ₹1 lakh. She invests ₹57,424 and applies for 4 lots (592 shares) at ₹97. She anticipates ₹10,064 in quick gains with GMP at +₹17. “As a small investor, Vikran’s infrastructure focus excites me—it’s like betting on India’s future,” Priya says. In line with many retail stories from the 2025 IPO wave, she has a long-term goal of 1.5 lakh in two years and plans to use the income for her child’s schooling.

Tax Implications for Investors

• Short-Term Capital Gains (STCG): 20% tax (Budget 2025 rate) is applied if the asset is sold within a year of listing.
• Long-Term Capital Gains (LTCG): 12.5% on gains over ₹1.25 lakh, held for more than a year.
• Dividends: Dividends are subject to slab rates and 10% TDS over ₹5,000.
• Benefits: Include ELSS connection for 80C deductions and the ability to reinvest gains under Section 54F for tax exemptions on house purchases.

Consult with a CA for personal guidance.

Frequently Asked Questions

What is today’s (August 25, 2025) Vikran Engineering IPO GMP?

+₹17 (17.53%), which indicates a premium of 17%.

What are the opening and closing times for the Vikran Engineering IPO?

August 26, 2025; August 29, 2025; closes.

What is the Vikran Engineering IPO pricing range?

92–97 rupee per share.

What is the Vikran Engineering IPO subscription status?

As of August 25, the anchor is fully subscribed for the pre-open. Expect a huge demand.

Is it safe for small investors to purchase Vikran Engineering’s IPO?

Yes, in the long run; a strong industry, fair price, but weigh the risks.

Conclusion

The Vikran Engineering IPO provides small investors with a route to significant profits notwithstanding slower 2025 SME gains, thanks to its strategic placement in India’s expanding infrastructure and renewable sectors. Despite risks like execution delays, it’s a strong “subscribe” for long-term holders with a ₹1,500 crore order book, a steady GMP of +₹17, and strong financials (33% PAT increase). This could, in fact, turn modest savings into great aspirations in an economy that is aiming for 7% growth; if your risk tolerance permits, apply through demat.

Disclaimer: This post is only for informational reasons and does not provide financial, investing, tax, or legal advice. Before making decisions, seek advice from a trained specialist. Risks associated with investing include the possibility of principle loss. Data is subject to change and is based on publicly available information as of August 2025. Both the publisher and the author disclaim all responsibility for any damages or losses.

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