Vikran Engineering IPO GMP Aug 25, 2025

Company Introduction

Vikran Engineering Limited is a leading Engineering, Procurement, and Construction (EPC) company in India. The company specializes in the power transmission and distribution sector, delivering projects up to 400 kilovolts (kV). Their services include design, supply, civil works, construction, testing, and commissioning of power substations and distribution networks. With a diversified portfolio and a strong presence in the domestic market, Vikran Engineering has shown rapid growth and aims to empower India’s infrastructure development.

Grey Market Premium (GMP) Signals for Vikran Engineering IPO

The Grey Market Premium (GMP) is a crucial indicator of investor interest before the official IPO listing. For the Vikran Engineering IPO, GMP signals have been strong with reports showing a 17% premium over the issue price. Some sources even indicate potential GMP levels around ₹22 above the upper price band, suggesting an estimated listing price of approximately ₹119 against the upper issue price of ₹97.

This robust Grey Market Premium reflects positive sentiment and demand in the unofficial market segments including Kostak (advance purchase) and Subject-to-Sauda (conditional contracts), common in India’s Grey Market trading for Upcoming IPOs.

IPO Details and Key Dates

• IPO Opening Date: August 26, 2025
• IPO Closing Date: August 29, 2025
• Issue Price Band: ₹92 to ₹97 per share
• Lot Size: 148 shares (Minimum Investment ₹14,356 approx.)
• Issue Size: ₹772 crore
• Basis of Allotment Date: September 1, 2025
• Refunds Initiation: September 2, 2025
• Listing Date: September 3, 2025

Business & Financial Performance

Vikran Engineering has displayed consistent financial growth over recent years. For the financial year ending March 31, 2025, the company reported:

• Revenue from operations: ₹916 crore, a growth of over 16% year-on-year
• Net profit (PAT): ₹78 crore, a growth of approximately 4% year-on-year
• EBITDA: ₹160 crore with an expanded margin of 17.5%
• Return on Equity (ROE): 16.63%
• Return on Capital Employed (ROCE): 23.34%

The company’s capital-efficient operations and growing order book position them well in the competitive EPC sector.

Why Investors Are Interested in Vikran Engineering IPO

• Strong Market Position: A reputed player in the power transmission and infrastructure sector.
• Growth Potential: Expansion in the energy infrastructure segment aligned with government initiatives.
• Robust Financial Metrics: Improving profitability with healthy margins and returns.
• Demand in Grey Market: High GMP signaling strong listing gains.
• Diversified Project Portfolio: Minimizes dependency risk and leverages multiple market segments.

Risks to Watch

• Dependence on Government Contracts: Susceptible to policy and budgetary changes impacting order inflows.
• Working Capital Intensive Operations: May lead to liquidity challenges affecting financial flexibility.
• Market Competition: Competitive bidding in EPC projects can pressure margins.
• Execution Risks: Delays or cost overruns in project completion as typical sector risks.

Final Takeaway

The Vikran Engineering IPO scheduled for late August 2025 is attracting significant investor attention as reflected in its strong Grey Market Premium. The company’s consistent financial growth, solid market reputation, and positive industry outlook make it a notable candidate for subscriber interest among Upcoming IPOs. However, investors should consider the inherent sector risks and the unregulated nature of GMP trading before forming expectations.

IPO GMP Disclaimer

Note: Grey Market Premium (GMP) is an unofficial, unregulated measure of pre-listing interest and is not endorsed by official market authorities. GMP figures, including Kostak and Subject-to-Sauda trades, should be viewed as indicative signals rather than guaranteed returns. Investors must conduct due diligence and exercise caution before relying on GMP for investment decisions.