blog/article/Vikran Engineering IPO: ₹772 Cr Issue at ₹92–97 Price band Opens on Aug 26, 2025

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Vikran Engineering IPO: ₹772 Cr Issue at ₹92–97 Price band Opens on Aug 26, 2025

Aug 21, 2025


Vikran Engineering Limited is designed to launch its initial public offer (IPO) on 26 August 2025, set to close on 29 August 2025. The IPO aims to raise ₹772 crore through a combination of fresh equity shares and a proposal for sale. The price band for IPO has been fixed at ₹92 to ₹97 per equity share. 


Company Overview


Vikran Engineering, rapidly expanded Indian Engineering, Procurement and Construction (EPC), which was established in 2008, is a company. The company specializes in providing end-to-end services including concept, design, supply, installation, tests and commissions on a turnkey basis. Its diverse project portfolio mainly focuses on the vertical of energy and water infrastructure, each contributing about 49% of its revenue, which highlights their high growth capacity.


Within the power sector, there is a strong appearance in both the power transmission and distribution of dishes engineering, with 400kV power transmission and 765kV additional high voltage (EHV) substation projects. This includes projects like 132 KV Transmission Line Construction and Bay Extension Projects for railway electrification. 


In the water sector, their projects include underground water distribution, surface water drainage, overhead tanks and distribution networks. The company also specializes in the solar EPC for ground-mounted solar projects and smart metering. By June 30, 2025, Vikran Engineering had successfully executed 45 projects in 14 states, with a total executed contract price ₹19,199.17 million. He currently has 44 ongoing projects in 16 states, with a total order price of 51,202.07 million, and an order book of 24,424.39 million. 


Notable customers in the government sector include NTPC Limited, Power Grid Corporation of India Limited and various state power distribution companies. Vikran Engineering Promoters are Rakesh Ashok Mercahadkar, Avinash Markhadkar and Nakul Markhadkar, who collectively held 81.78% of Pre-IPO Capital. Rakesh Ashok Markhedkar, Chairman and Managing Director, is the only promoter to participate in the sale proposal.

Financial performance and evaluation


Vikran Engineering has demonstrated consistent financial growth. Its revenue from operations increased by 16.53% from ₹791 crore in FY24 to ₹922 crore in FY25. The total income grew from ₹529 crore in FY23 to ₹922 crore in FY25. Profit After Tax (PAT) has also shown improvement, rising from ₹42 crore in FY23 to ₹77 crore in FY25. 

Its Net Worth expanded significantly from ₹131.14 crore in FY23 to ₹467.87 crore in FY25, indicating financial strength. As of March 31, 2025, the company's Debt/Equity ratio stood at 0.58. According to the latest financial reports, Vikran Engineering has a Return on Equity (ROE) of 35.43% and a Return on Capital Employed (ROCE) of 35.67%. At the IPO price band of ₹92–97 per share, the valuations appear reasonable considering the earnings and growth momentum.


Vikran Engineering IPO Details and Structure


Vikran Engineering IPO has been structured as a book-made issue, aimed at  772.00 crores. This includes a new issue of 7.43 crore shares, which collects up to 721 crore, and a proposal for sales (offs) of 0.53 crore shares, an amount of 51 crores by promoter Rakesh Ashok Markhedkar. The income of the new issue is mainly made to increase the working capital requirements of the company, with 541 crore allocated for this purpose in the financial years 2025 and 2026, the remaining for general corporate purposes. The purpose of this strategic allocation is to support future project execution and continuous development. 


The membership window for the IPO is from August 26, 2025 to August 29, 2025. The allocation with listing on both anticipated BSE and NSE on 1 September 2025 on 1 September 2025 has been temporarily determined. 


Pantomath Capital Advisors Pvt. Ltd. and Systematics Corporate Services Limited Book-Hanging Lead Manager, while Bigger Services Pvt. Limited Registrar for this issue. Investors will closely look at the listing after the Vikran engineering share price movement, reflecting the market spirit.


Major Key risk to watch


Reliance on third-party logistics: Vikran depends a lot on external logistics partners to provide material and machinery to project sites across India. Any delay, disruption or refusal of service can be severely affected by the project time limit, cost efficiency and profitability.


Cost of raw materials: Engineering and manufacturing firms such as Vikran are brought into contact with steel, cement and other major material prices. If the cost of raw materials is interrupted, the cost structure and margin of the company may have adverse effects.


Tender-operated business with government risk: About 46% of its revenue comes from government tenders, in addition to PSU and private sector contracts. Any recession in public sector expenses, changes in policy, or failure to win tender can barely stop the contract or renaissance -flow.


Working capital intensity and cashflow pressure: Like most EPC players, Vikran projects require significant investment in materials, labor and equipment, and revenue is often felt only after a certificate or billing delay. The company requires the ongoing capital to operate, which is right what is the goal of advancing the new IPO issue.


Should you apply?


The Vikran Engineering IPO comes at a time when India’s infrastructure sector is booming, backed by government push and rising private capex. The company has shown revenue growth, a decent order book, and a growing presence in EPC contracts. However, thin margins, high receivables, and dependence on government spending make this a higher-risk bet compared to more established peers.


The Vikran Engineering IPO taps into India’s infrastructure boom and carries ambition but also risks. While some are being managed via fresh capital, others like tender dependence, raw material volatility, and regulatory approvals are structural and require close monitoring. Investors should weigh these factors carefully, alongside valuation and growth prospects, if they plan to take a long-term stake in the company.


For aggressive investors looking to ride the infrastructure boom, this IPO may offer medium-term opportunities. But for conservative investors, it may be wiser to wait until the company proves its ability to translate growth into consistent free cash flows.

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