Vikran Engineering IPO GMP hints at 12% listing pop on day 3. Should you subscribe? Key details here

Vikran Engineering’s initial public offering is witnessing strong demand on the third and final day of bidding on Friday, with overall subscription at 5.62 times so far, driven by retail and non-institutional investors. A grey market premium of Rs 12 points to a potential 12% listing gain, leaving investors to weigh whether the issue is worth backing.

By 10:10 a.m. on Friday, retail investors had bid 5.57 times their allotted quota, while the non-institutional investor (NII) category saw 12.02 times subscription. The qualified institutional buyer (QIB) portion had received 91% bids so far.

Vikran Engineering GMP

The last reported grey market premium (GMP) stood at Rs 12 as of 8:59 AM on day 3. With the IPO’s upper price band fixed at Rs 97 per share, the implied listing price comes to Rs 109, an expected 12.37% gain per share.

Vikran Engineering price band and lot size

The price band for the issue is Rs 92–97 per share. The lot size is 148 shares, requiring a minimum retail investment of Rs 14,356 at the upper end of the band. Small NIIs must bid for at least 14 lots (2,072 shares) amounting to Rs 2,00,984, while large NIIs must subscribe for 70 lots (10,360 shares), translating to Rs 10,04,920.

Vikran Engineering issue details

The Rs 772 crore issue comprises a fresh issue of 7.43 crore shares worth Rs 721 crore and an offer for sale of 0.53 crore shares aggregating Rs 51 crore. Bidding opened on August 26 and will close on August 29. The allotment is expected on September 1, with tentative listing on the BSE and NSE scheduled for September 3.

Anchor investors

Ahead of the IPO, Vikran Engineering raised Rs 231.60 crore from anchor investors on August 25.

Use of proceeds

The company plans to deploy Rs 541 crore from the net proceeds of the IPO towards funding working capital requirements. The remainder will be used for general corporate purposes.

IPO book runners and registrar

Pantomath Capital Advisors Pvt. Ltd. is the book-running lead manager for the IPO, while Bigshare Services Pvt. Ltd. is the registrar.

About Vikran Engineering

Founded in 2008, Vikran Engineering Ltd is an engineering, procurement, and construction (EPC) firm engaged in power transmission and distribution, water infrastructure, railway projects, and solar energy. The company has executed 45 projects across 14 states, with a total value of Rs 19,199.17 million, and has 44 ongoing projects across 16 states worth Rs 51,202.07 million. Its order book stood at Rs 24,424.39 million as of June 30, 2025.

Vikran Engineering counts NTPC Ltd, Power Grid Corporation of India, and Transmission Corporation of Telangana among its government sector clients. As of June 30, the company employed 761 permanent staff.

Financials

The company’s revenue grew 17% in fiscal 2025 compared with the previous year, while profit after tax rose 4%.

Should you subscribe?

Brokerages remain divided but lean positive. Reliance Securities said Vikran Engineering’s “strong execution track record, alignment with the government’s infrastructure initiatives, and asset-light business model” make the IPO attractive.

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Canara Bank Securities also recommended subscribing, citing “rapid growth in order execution and experienced promoters,” but flagged risks including stretched working capital cycles and “a recent ban on railway electrification projects imposed by the Railways’ vigilance wing” that could weigh on future order flows.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)