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Infrastructure and EPC firm Vikran Engineering is set to launch its initial public offering (IPO) on August 26, aiming to raise INR 772 crore. The IPO, which will close on August 29, has a price band of INR 92 to INR 97 per share. The proceeds from the fresh issue, amounting to INR 721 crore, will be primarily used to fund the company's working capital needs, crucial for its large and growing order book. This public issue comes as the company reports strong financial performance, with revenues growing by over 16% in the last fiscal year. The IPO is a strategic move to leverage India's robust infrastructure development and capitalize on the government's significant capital expenditure in the sector.
Engineering, Procurement, and Construction (EPC) company Vikran Engineering is gearing up for its maiden public offering, with its INR 772 crore IPO opening on Tuesday, August 26. The Mumbai-based firm, which specializes in providing end-to-end services for large-scale infrastructure projects, will have a price band of INR 92 to INR 97 per share. The IPO is a combination of a fresh issue of shares worth INR 721 crore and an offer for sale (OFS) of INR 51 crore by its promoter. The capital raised will be used to fund the company's working capital requirements and support its expansion. Advertisement
Vikran Engineering's decision to go public is well-timed with India's burgeoning infrastructure sector, which is receiving strong government impetus through schemes like the National Infrastructure Pipeline (NIP) and PM Gati Shakti. The company has established a strong presence in the power, water, and railway sectors. It has completed key projects across 14 states, including a 400 kV transmission line for Madhya Pradesh Power Transmission Company and railway electrification work for the Ministry of Railways. As of June 30, 2025, the company's confirmed order book stood at INR 2,442 crore, a testament to the robust demand for its services.
The IPO provides investors with an opportunity to buy into a company with a solid financial track record. In the last fiscal year, the company's revenue from operations increased by 16.53% to INR 916 crore, while profit after tax grew by 4% to INR 78 crore. The company's business model, which caters heavily to government and public sector clients like NTPC and Power Grid Corporation of India, provides a stable and predictable revenue stream, distinguishing it from private sector-dependent companies.
Vikran Engineering will be competing in a highly competitive market against established players like Larsen & Toubro (L&T), Tata Projects, and KEC International. The IPO is being managed by Pantomath Capital Advisors and Systematix Corporate Services, with Bigshare Services acting as the registrar. The proceeds from the fresh issue will be primarily used to meet working capital requirements for its 44 ongoing projects across 16 states, which have an aggregate value of over INR 5,120 crore, positioning the company for significant growth in the coming years.
Source: PTI
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