Vikran Engineering Limited finalizes share allotment for its Rs 772 crore initial public offering today, September 1, 2025, following exceptional investor demand that saw the infrastructure EPC company’s issue oversubscribed 23.59 times across all categories. The Mumbai based company, which operates in power transmission, water infrastructure, and railway electrification sectors, will list its shares on BSE and NSE on Tuesday, September 3, with grey market indicators suggesting a modest premium over the issue price of Rs 97 per share.
Stellar Subscription Numbers Drive Investor Interest
The infrastructure giant witnessed remarkable investor enthusiasm during its three day subscription window from August 26 to 29, receiving bids for 138.59 crore shares against 5.87 crore shares on offer. Non institutional investors emerged as the most aggressive bidders, oversubscribing their reserved category by an impressive 58.58 times, while qualified institutional buyers subscribed 19.45 times and retail investors participated 10.97 times their allocated portions.
The overwhelming response reflects strong market confidence in Vikran Engineering’s diversified business model and robust order book worth Rs 24,400 crore as of June 30, 2025. The company provides comprehensive engineering, procurement, and construction services across critical infrastructure sectors, positioning itself strategically in India’s rapidly expanding infrastructure development landscape.
Notable investors including ace investor Ashish Kacholia and Mukul Agarwal have backed the company, further boosting investor confidence. The company had successfully raised Rs 231.6 crore from anchor investors before opening the public subscription, setting a positive tone for the IPO performance.
Step by Step Guide to Check Allotment Status
Investors eagerly awaiting their allotment results can verify their status through multiple official channels starting today. The process involves checking through BSE, NSE, or the registrar Bigshare Services website using either PAN number or application number.
Through BSE Website: Visit the BSE investor services page and navigate to the IPO application status section. Select Equity as the issue type, choose Vikran Engineering Limited from the dropdown menu, enter your PAN or application number, complete the security verification, and click search to view your allotment status.
Through NSE Platform: Access the NSE IPO allotment verification page and select Equity and SME IPO bid details option. Choose VIKRAN from the symbol list, input your credentials including PAN and application number, and submit to check your allocation details.
Via Registrar Portal: Navigate to Bigshare Services official website and locate the IPO allotment status section at the bottom of the homepage. Select Vikran Engineering from the company dropdown once available, choose your preferred identification method between application number, beneficiary ID, or PAN number, and proceed to view your results.
Grey Market Premium Signals Modest Listing Gains
Current grey market trends indicate a premium of Rs 6 per share over the upper price band of Rs 97, suggesting potential listing gains of approximately 6.19 percent for successful allottees. While this represents a relatively modest premium compared to recent blockbuster IPOs, market experts view it as sustainable given the company’s fundamentals and current market conditions.
The moderate grey market premium aligns with the company’s valuation metrics, which show a price to earnings ratio of approximately 22 times, considerably lower than industry peers like Techno Electric and Engineering trading at 40.17 times and Transrail Lighting at 30.73 times. This competitive valuation provides room for potential appreciation post listing.
Company Fundamentals Support Long Term Growth
Vikran Engineering has demonstrated exceptional financial performance with revenue, EBITDA, and PAT growing at compound annual rates of 32 percent, 42 percent, and 35 percent respectively between fiscal years 2023 and 2025. The company maintains healthy margins with EBITDA at 17.5 percent and PAT at 8.44 percent in FY25, alongside improved debt to equity ratio of 0.58 times.
| Financial Metrics | FY25 Performance | Industry Average |
|---|---|---|
| EBITDA Margin | 17.5% | 14.2% |
| PAT Margin | 8.44% | 7.1% |
| Debt to Equity | 0.58x | 0.92x |
| ROCE | 23.34% | 18.5% |
| ROE | 16.63% | 14.8% |
Founded in 2008 and acquired by the Markhedkar family in November 2014, the company has evolved from a regional player to a nationally recognized infrastructure solutions provider. Chairman and Managing Director Rakesh Ashok Markhedkar leads the organization alongside promoters Avinash A. Markhedkar and Nakul Markhedkar, bringing extensive industry expertise to drive strategic growth initiatives.
Proceeds Allocation and Future Expansion Plans
The fresh issue component of Rs 721 crore will primarily fund working capital requirements worth Rs 541 crore, with the remaining amount allocated for general corporate purposes. This capital infusion positions Vikran Engineering to capitalize on the expanding infrastructure opportunities across power transmission, renewable energy, and railway electrification sectors.
The company has successfully executed projects for government entities, public sector undertakings, and private corporations across multiple states. Its achievements include completing over 200 kilometers of transmission lines, establishing distribution networks, and executing railway track electrification projects. Recent milestones include securing the first 500 MVA, 400 kV Power Transformer Substation order from PGCIL at Muzaffarpur and the prestigious 132 kV GIS Substation order from MSETCL for the bullet train project.
Key operational capabilities include: • Design and construction of substations up to 765kV capacity • Solar PV project implementation and asset light operational approach • End to end EPC services from conceptualization to commissioning • Testing and commissioning services meeting stringent regulatory standards • Multi sector presence across power, water, and railway infrastructure
Market Outlook and Investment Considerations
The successful IPO subscription reflects broader market optimism toward infrastructure sector investments, particularly companies with established track records and diversified project portfolios. Vikran Engineering benefits from India’s massive infrastructure development push, with government initiatives driving demand for power transmission upgrades, railway electrification, and water infrastructure projects.
Industry analysts project sustained growth opportunities as India continues investing heavily in infrastructure modernization. The company’s strategic positioning in high growth segments, combined with its proven execution capabilities and competitive cost structure, provides multiple growth drivers for the coming years.
Retail investors who secured allotment at the upper price band of Rs 97 per share with minimum lot size of 148 shares would have invested Rs 14,356. With expected listing gains based on current grey market premiums, the investment could potentially appreciate to Rs 15,244 on listing day, though actual performance will depend on broader market conditions and investor sentiment.
Long term investors should consider the company’s strong order book visibility, improving financial metrics, and strategic positioning in critical infrastructure sectors when making investment decisions. The relatively attractive valuation compared to listed peers provides additional comfort for investors seeking exposure to the infrastructure growth story. Share your views on Vikran Engineering IPO performance and whether you plan to hold or book listing gains in the comments section below.
