VIKRAN ENGINEERING IPO

Snapshot of the VIKRAN ENGINEERING IPO

Important Dates for VIKRAN ENGINEERING IPO Applicants

• Opening Date: 26 Aug 2025
• Closing Date: 29 Aug 2025
• UPI Payment Deadline: 29 Aug 2025 (5 PM)
• Allotment Announcement: 01 Sep 2025
• Refund Processing: 02 Sep 2025
• Demat Credit: 02 Sep 2025
• Stock Market Listing: 03 Sep 2025
• Mandate Validity End: 15 Sep 2025
• Anchor Investor Lock-in Release (50%): 01 Oct 2025
• Anchor Investor Lock-in Release (Remaining): 30 Nov 2025

*Dates may be revised as per official updates.

Exploring Vikran Engineering: A Company Profile

Founded in 2008, Vikran Engineering is a rapidly growing Engineering, Procurement, and Construction (EPC) company headquartered in Thane, Maharashtra. The company operates across India, specializing in turnkey infrastructure projects that are crucial for the nation’s development. Its core services include power transmission lines (up to 765 kV), substations (both Air-Insulated and Gas-Insulated up to 400 kV), comprehensive water supply solutions, and railway electrification projects.

Vikran Engineering boasts a significant operational footprint, having successfully completed 44 projects and currently executing 34 more across over 17 Indian states. This extensive reach highlights its capacity and capability in handling diverse and large-scale infrastructure assignments. The company caters primarily to prominent government and public sector entities, a testament to its reliability and quality of work. Its esteemed clientele includes names like NTPC Limited, Uttar Pradesh Water Supply and Sanitation Mission, Andhra Pradesh Central Power Distribution Corporation Limited, MP Power Transmission Company Ltd, and South Bihar Power Distribution Company Ltd.

Financially, Vikran Engineering has demonstrated robust growth. For FY2024, the company reported a revenue of ₹243.2 crore and a net profit of ₹27.89 crore. Over the past five years, it has achieved an impressive 19% Compound Annual Growth Rate (CAGR) in sales and an outstanding over 80% CAGR in net profit, showcasing its strong operational efficiency and profitability trajectory.

Industry Landscape and Growth Prospects

India’s Engineering, Procurement, and Construction (EPC) sector, though fragmented, is on a significant growth trajectory, primarily fueled by the government’s ambitious infrastructure development agenda. The National Infrastructure Pipeline (NIP) is a cornerstone of this growth, with a massive outlay of ₹147 lakh crore. This initiative alone is projected to generate approximately ₹92 lakh crore in EPC opportunities, providing a substantial demand pipeline for companies like Vikran Engineering.

A remarkable 62% of NIP projects are being implemented through the EPC model, further solidifying the sector’s importance. Investment growth in infrastructure is projected at 1.3-1.4 times between fiscals 2026-30 compared to 2019-25, indicating sustained expansion. Government initiatives such as PM Gati Shakti and a strong focus on renewable energy projects are expected to drive further investments. Transportation projects form the largest segment of opportunity, closely followed by power and water infrastructure, aligning perfectly with Vikran Engineering’s diversified project portfolio.

IPO Proceeds: Issue Size and Fund Allocation

The IPO comprises both a fresh issue and an Offer for Sale (OFS). The fresh issue component aims to infuse new capital into the company, while the OFS provides an opportunity for existing shareholders to dilute their stake. The substantial fresh issue component indicates the company’s intent to fund its growth initiatives and strengthen its financial position, building on its impressive five-year financial performance characterized by a 19% CAGR in sales and over 80% CAGR in net profit.

Strategic Utilisation of IPO Funds

The capital raised through the fresh issue portion of the IPO will be strategically deployed to support Vikran Engineering’s future growth and operational stability. The company has outlined its key objectives for the utilisation of these funds:

A significant portion of the funds, 75%, is allocated towards augmenting the company’s working capital requirements. This is crucial for an EPC company, as it ensures smooth project execution, timely procurement of materials, and efficient management of day-to-day operations. The remaining 25% is earmarked for general corporate purposes, providing the company with flexibility to pursue various strategic initiatives, including business expansion, technological upgrades, or other operational necessities.

Distinct Advantages of Vikran Engineering

• Diversified Project Portfolio: The company benefits from a robust and diversified project mix across critical sectors like power, water infrastructure, and railway electrification, reducing dependence on a single sector.
• Strong Execution Track Record: With a successful completion of 44 projects and 34 ongoing projects spread across 17 states, Vikran Engineering demonstrates proven execution capabilities and a wide operational presence.
• Established Client Relationships: It has built strong, enduring relationships with major government and public sector clients, providing a stable revenue base and repeat business opportunities.
• Robust Financial Growth: The company has exhibited significant financial growth, marked by a healthy CAGR in sales and an exceptional CAGR in net profit over the past five years, reflecting efficient management and profitability.
• Successful Pre-IPO Funding: Vikran Engineering has successfully raised over ₹100 crore in pre-IPO funding rounds, indicating investor confidence and strong financial backing prior to its public offering.

Key Considerations and Potential Risks for Investors

• High Dependence on Government Contracts: A significant portion of Vikran Engineering’s revenue is derived from government and public sector contracts, making it susceptible to changes in government policies, budgetary allocations, and project priorities.
• Working Capital-Intensive Operations: The nature of EPC projects often requires substantial working capital, which, if not managed efficiently, could impact the company’s liquidity and financial health during various stages of project execution.
• Regulatory and Environmental Compliance: Operating in the infrastructure sector involves navigating complex regulatory frameworks and adhering to stringent environmental compliance standards, with potential risks from non-compliance or changes in regulations.
• Project Execution Delays: Infrastructure projects are prone to unforeseen challenges such as site conditions, land acquisition issues, or delays in obtaining approvals, which could lead to project overruns and impact profitability.
• Client Concentration Risk: While having established government clients is a strength, a high reliance on a few large clients for a significant portion of revenue could introduce concentration risk, where the loss of or reduced business from a major client could have a material adverse effect.

Live Subscription Status for VIKRAN ENGINEERING IPO

Subscription statistics based on the latest available information as of 5:00 PM on August 29, 2025:

*GMP figures are unofficial and may vary; exchange data is more reliable.

Seamlessly Participate in the VIKRAN ENGINEERING IPO

The VIKRAN ENGINEERING IPO presents an opportunity for investors to participate in the growth story of a dynamic EPC company contributing significantly to India’s infrastructure development. Prospective investors are encouraged to conduct thorough due diligence and consider all aspects before making an investment decision.

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes.