Vikran Engineering India IPO got 23.6 times share demand at close

Vikran Engineering India IPO got 23.6 times share demand at close

Vikran Engineering, an Indian infrastructure EPC firm, witnessed a remarkable surge in demand for its initial public offering (IPO) shares, with a 23.6 times oversubscription at the close of the first day. The IPO, which opened on August 26 and closed on August 29, saw an overwhelming response from investors, highlighting the company's growing appeal in the market.

The IPO price band was set at ₹92-97 per share, with a fresh issue of shares estimated at around ₹721 crore and an offer-for-sale section valued at ₹51 crore by the promoter. The company plans to use the proceeds from the fresh issue to fund working capital needs and for general corporate purposes.

Vikran Engineering's growth trajectory is closely aligned with flagship government programs such as the Revamped Distribution Sector Scheme (RDSS), the National Solar Mission, Jal Jeevan Mission, and Swachh Bharat Mission. The company's successful track record in earlier programs like DDUGJY, IPDS, and Saubhagya underscores its execution capabilities and credibility in delivering on large government-backed mandates.

The company's strategic focus on capitalizing on government initiatives, coupled with its asset-light model and pan-India presence, positions it well to benefit from India's infrastructure boom. Vikran Engineering has a diversified order book, with a significant portion of its revenue coming from the power transmission, water infrastructure, and railway sectors.

The IPO subscription status was 15% on day 1, with the retail portion subscribed at 20% and the NII portion booked at 25%. Qualified Institutional Buyers (QIBs) portion is yet to receive bids. The company has received bids for 89,98,992 shares against 5,87,39,128 shares on offer, at 10:18 IST, according to data on BSE.

Vikran Engineering's strong technical and engineering capabilities, along with its diversified order book and consistent financial performance, make it an attractive investment opportunity. However, investors should be cautious about potential risks such as competitive bidding, client dependence, execution challenges, and high working capital needs.

References:
[1] https://www.livemint.com/market/ipo/vikran-engineering-ipo-gmp-vikran-engineering-ipo-review-vikran-engineering-ipo-details-vikran-engineering-ipo-price-11756175868688.html