| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 92 to ₹ 97 | 148 | 26th Aug, 2025 –29th Aug, 2025 | ₹772.00 Cr |
Vikran Engineering Ltd
Vikran Engineering Limited (VEL) is an Indian Engineering, Procurement and Construction (EPC) company, boasting a diversified project portfolio, with the majority of revenue from energy and water infrastructure verticals. The company provides end-to-end services from conceptualisation, design, supply, installation, testing and commissioning on a turnkey basis. VEL has its presence spanning across multiple sectors, including power, water and railway infrastructure. Within the power sector, VEL has presence in both power transmission and power distribution. In the water sector, its projects include underground water distribution and surface water extraction, overhead tanks, and distribution networks. The company also has experience in Solar EPC of ground-mounted solar projects and smart metering. As of June 30, 2025, the company have completed 45 projects across 14 states with a total executed contract value of Rs. 19,199 million. As of June 30, 2025, VEL has 44 ongoing projects across 16 states, aggregating orders of Rs. 51,202 million, of which the order book is Rs. 24,424 million. As of FY25, the company derives 73.9% of its revenue from power T&D, 26.8% from water infrastructure and 0.3% from railway and infra. VEL covers the following projects in its business verticals: Power T&D, involving construction of high-voltage transmission lines (up to 765 kV), substations (up to 400 kV, both AIS and GIS), power distribution networks, and smart metering; Water Infrastructure, providing turnkey solutions such as drinking water supply systems, water distribution networks, rainwater harvesting, and multi-village rural water supply schemes under the Jal Jeevan Mission, with 12 ongoing projects across multiple states; and Railway Infrastructure, where the company is engaged in railway electrification, overhead electrification (OHE 25kV), signalling, underground EHV cable works, and traction substations.
Objective of the Vikran Engineering Ltd IPO
The company proposes to utilize net proceeds towards funding the following objects:
- Funding working capital requirements of the company; and
- General corporate purposes.
Out of the total issue of Rs. 7,720 million, Rs. 510 million constitutes OFS, which will not be received by the company.
Rationale To Vikran Engineering Ltd IPO
Robust order book with capital-efficient, asset-light business model to drive scalable growth
VEL’s robust financial performance and competitive advantage are a result of its strategic business model and strong market position. A key driver is its diversified order book, which helps mitigate risk by securing projects across multiple critical infrastructure sectors, including power transmission, water, and railways. This strategic diversification ensures a stable and continuous flow of business, as the company’s dependence on the health of any single industry decreases. The effect of this approach is a remarkable financial track record, evidenced by a 32.2% CAGR in revenue and a 34.8% CAGR in profit from FY23 to FY25. This financial strength is further amplified by the company’s commitment to an asset-light model, enabling the company to avoid high fixed costs and freeing up capital. This strategic choice is reflected in its exceptional fixed asset turnover ratio of 101.27 in FY25, demonstrating its ability to generate high revenue with minimal capital expenditure. The combination of a diversified portfolio and a capital-efficient, asset-light model provides the company with the financial resilience and operational flexibility needed to capitalise on India’s booming infrastructure market and sustain its growth trajectory.
Well-positioned to capitalise on policy-driven infrastructure push
Vikran Engineering’s alignment with government infrastructure priorities is materially strengthened by its integrated in-house capabilities and broad operational reach. The company’s team of engineers and designers enables it to provide end-to-end turnkey execution, supported by a Centralised Project Monitoring and Control Group (CPMG) that ensures projects are delivered with quality, efficiency, and cost control. These technical strengths are reinforced by its pan-India presence across 16 states with 190 sites and stores, ensuring on-ground support, resource optimisation, and faster project turnaround. Together, these create an execution platform that is both efficient and scalable, enabling the company to take on complex, multi-location EPC projects with confidence. This integrated model directly complements the significant policy-driven infrastructure push in India, where schemes like Jal Jeevan Mission, Saubhagya, DDUGJY, IPDS, and high-speed rail electrification are generating sustained project opportunities. The company’s proven ability to execute across power transmission, water, and railway infrastructure positions it as a credible partner for government agencies.
Valuation of Vikran Engineering Ltd IPO
Vikran Engineering is one of the fastest-growing EPC player in terms of revenue growth. The company has executed projects for government entities, public sector undertakings and private companies. Its focus on operational efficiency and efficient cost structure has enabled VEL to deliver high-value projects that meet stringent regulatory and quality standards. Vikran Engineering’s large and diversified order book, supported by its asset-light execution model, provides strong revenue visibility while minimising capital intensity and enhancing return ratios. This financial strength is complemented by its in-house engineering capabilities and extensive pan-India presence, which allow the company to efficiently bid for and execute projects under government-led infrastructure schemes. Looking ahead, the company plans to expand selectively into solar EPC (100MW+ turnkey projects), irrigation, metro, and overseas markets (Africa and the Middle East) where electrification and infrastructure needs remain acute. This diversification, combined with steady government support, places Vikran as a credible beneficiary of India’s infrastructure growth cycle, while also opening long-term avenues in adjacent EPC verticals. Financially, the company has demonstrated strong growth momentum, with both revenue and PAT delivering robust double-digit expansion over FY23-FY25. Profitability has also improved, as reflected in EBITDA margins rising from 15.2% in FY23 to 17.5% in FY25. The balance sheet has strengthened, with leverage reducing significantly, improving from 1.2x in FY23 to 0.6x in FY25. However, return ratios moderated, with ROE and ROCE declining to 16.6% and 21.2% in FY25 from 32.7% and 26.4% in FY23, respectively, largely due to the sizeable equity infusion undertaken between FY24-FY25. On the upper price band, the issue is valued at a P/E ratio of 22.3x based on FY25 earnings, which is trading at a discount, compared to its peers. Thus, considering the company’s favourable market positioning, we recommend a “SUBSCRIBE” rating for this issue.
What is the Vikran Engineering Ltd IPO?
The initial public offer (IPO) of Vikran Engineering Limited offers an early investment opportunity in Vikran Engineering Ltd . A stock market investor can buy Vikran Engineering Ltd IPO shares by applying in IPO before All Vikran Engineering Ltd shares get listed at the stock exchanges. An investor could invest in Mangal Electrical Ltd IPO for short term listing gain or a long term.
How to apply for the Vikran Engineering Ltd IPO through StoxBox?
To apply for the Vikran Engineering Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Vikran Engineering Ltd IPO open?
Vikran Engineering Ltd IPO is opening on 26th Aug 2025. Apply Now
What is the lot size of the Mangal Electrical Ltd IPO?
The Lot Size of Mangal Electrical Limited IPO is 26 equity shares. Login to your account now.
When is the Vikran Engineering Ltd allotment date?
The allotment Date for Vikran Engineering Ltd IPO is 26th Aug 2025. Login to your account now.
When is the Vikran Engineering IPO listing date?
The listing Date for Vikran Engineering Ltd IPO is 3rd Sep 2025. Login to your account now
What is the minimum investment required for the Vikran Engineering Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,356. Login to your account now
What is the maximum investment allowed for the Vikran Engineering Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 1,86,628. Login to your account now
What are the risks associated with investing in the Vikran Engineering Ltd IPO?
- The company has reported negative operating cash flows in FY24 and FY25 despite being PAT positive. Continued shortfalls in cash generation could strain liquidity, limit growth investments, and adversely impact financial stability.
- As of June 30, 2025, the company’s order book was Rs. 24,424 million. However, inclusion of projects in the order book cannot be considered indicative of future revenue, as such projects may be delayed, modified, or cancelled due to factors such as customer payment delays, regulatory approvals, or changes in project scope.
- Nearly 82.4% of the order book value is contributed by the company’s top ten customers, 56.1% by its top five and 13.4% by its top one customer, highlighting potential concentration risk.
When will the Vikran Engineering Ltd IPO shares be credited to my Demat account?
The Mangal Electrical Ltd IPO be credited to the account on allotment date which is 2nd Aug 2025. Login to your account now
Where can I find the Vikran Engineering Limited IPO prospectus?
The prospectus of Vikran Engineering Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
