Vikran Engineering Limited is coming to the market with a ₹772 crore Initial Public Offering (IPO). The company works in the Engineering, Procurement, and Construction (EPC) space and executes turnkey projects for power, water, and railway infrastructure across India. The IPO opens on 26 August 2025 and closes on 29 August 2025, with a price band of ₹92–₹97 per share. Shares are expected to list on both NSE and BSE on 3 September 2025.
What does Vikran Engineering do?
Vikran Engineering provides end-to-end EPC services—from design and procurement to installation, testing, and commissioning—mainly for:
Power (transmission & distribution, including high-voltage substations),
Water (underground water distribution, surface water schemes, overhead tanks, networks),
Rail (railway electrification and related works).
In short, it’s a project executor for core infrastructure. The company positions itself as a fast-growing EPC player with a pan-India footprint.
Chittorgarh.
Track record & presence
As of June 30, 2025, Vikran reports:
45 projects completed across 14 states, worth about ₹919 crore (cumulative), and
44 ongoing projects across 16 states, forming a pending order book of around ₹2,442 crore within a larger aggregate of awarded orders.
Multiple sources confirm 44 ongoing projects in 16 states and highlight a strong order book and pan-India presence.
The company says it follows an asset-light model—a lot of equipment is taken on rent, helping control fixed costs and improve return ratios, which is common in EPC for nimble execution.
Business India.
Vikran Engineering IPO
IPO opens: Aug. 26
IPO closes: Aug. 29
Issue size: 7.9 crore shares
Total issue worth: Rs 772 crore
Tentative allotment date: Sept. 1
Tentative listing date: Sept. 3
Face value: Rs 1 per share
Issue type: Bookbuilding IPO
Listing platform: BSE, NSE
From your collected figures:
Revenue (Sales):
• FY2023: ₹524 crore
• FY2024: ₹786 crore
• Last year: ₹916 crore
Return on Equity (ROE):
• FY2023: 32%
• FY2024: 25%
• FY2025: 16%
Interpretation in simple terms: revenue is growing well, but ROE is trending lower as the company scales and likely builds working capital and execution capacity for more/bigger projects. That’s normal in EPC phases where growth needs cash and margins can swing project-to-project.
Debt & leverage (your data)
Debt:
• FY2023: ₹154 crore
• FY2024: ₹183 crore
• Latest: ₹273 crore
Debt-to-equity: ~0.58x (your figure)
EPC needs bonding and working capital; leverage is present but not extreme by sector standards. Still, rising debt means investors should watch cash flows and execution discipline.
Business mix
~80% of revenue from Government/PSU clients, ~20% from private, so the business is government-heavy.
Sectors served: Power, Water, Rail.
Management says it operates pan-India and bids for turnkey jobs.
Government dependence is double-edged: strong pipeline visibility and payments backed by the state, but tender competition is high, and working-capital cycles can stretch.
Size, positioning & competition
You mentioned Vikran is among the smaller players in the EPC peer set (a small-cap). In such a crowded field, competition is intense, and players with deeper pockets can bag large projects. However, Vikran’s 44 ongoing projects and order book diversity show it already has meaningful execution underway.
IPO details at a glance
Issue size: ₹772 crore (Fresh issue ~₹721 crore + OFS ~₹51 crore)
Use of funds: ₹541 crore for working capital; ₹180 crore for general corporate purposes (rounded figures consistent with disclosures)
Price band: ₹92–₹97 per share
Lot size: 148 shares
Minimum investment (retail): ₹13,616 for 1 lot
Maximum (retail): 13 lots = ₹1,86,628
Offer type: Mainboard, Book Building
Promoters, founder & leadership
Founder / Promoter / Chairman & Managing Director: Rakesh Ashok Markhedkar
Whole-time Directors (Promoters): Avinash Markhedkar, Nakul Markhedkar
COO: Dibyendu Ray
CFO: Ashish Bahety
Pre-issue, promoters collectively held ~81.78%. Rakesh A. Markhedkar is the sole promoter selling a small portion via OFS.
Ahead of the offer, Vikran raised about ₹232 crore from anchor investors, including well-known domestic names—an indicator of institutional interest. Separately, the grey market premium (GMP) has been reported around ~17% near the open, suggesting positive listing expectations (note: GMP is unofficial and volatile).
Why the company says it’s different (strengths)
Strong growth runway in core infra: Government programs like National Infrastructure Pipeline, Jal Jeevan Mission, and Gati Shakti support multi-year demand in power, water, and rail EPC.
Pan-India execution + diversified order book: Ongoing projects across 16 states, with sector split across power, water, and rail. This reduces single-client or single-sector risk.
Asset-light, rent-heavy model: Keeps capex low, helps returns and scalability when managed well.
Business India
Experienced leadership: Founder-CMD with 30+ years in EPC; seasoned COO and CFO.
Key risks & weaknesses (keep it simple)
High competition: EPC is crowded; price-based bidding can pressure margins. (Your noted weakness.)
Working capital heavy: Execution needs cash; rising debt must be watched. (Your numbers show debt up to ~₹273 crore.)
Government dependency (~80%): Policy/tender timing and payments impact cash cycles.
Bid win-rate volatility: Public data shows the success rate of bids fell to ~20% in FY25 from ~42% in FY23—investors should track whether win-rates stabilise as the company targets larger, more complex jobs.
How the IPO money will be used
₹541 crore for working capital—to back execution and let the company bid for larger projects.
₹180 crore for general corporate purposes—systems, people, and other growth enablers.
This is consistent with disclosures summarised in broker notes and media reports.
Chittorgarh
Simple valuation & expectation lens (no-jargon)
At the top end of the band (₹97), the post-issue market cap is guided around ₹2,409–2,502 crore, per research notes built on the RHP. For a small-cap EPC with fast growth in revenue but moderating ROE and rising working-capital needs, a fair listing outcome usually depends on:
The quality of the order book (mix of power/water/rail, margin profile),
Execution speed (on-time delivery limits cost overruns), and
Cash conversion (how quickly receivables turn into cash).
Chittorgarh
Should beginners consider it?
If you like infra/EPC stories and you understand that EPC is a low-margin, high-execution business, Vikran offers:
A visible pipeline (44 ongoing projects),
Government-led demand tailwinds in power/water/rail, and
Experienced leadership following an asset-light approach.
What to watch before you apply:
Working capital cycle and debt trend post-IPO (does cash flow improve?).
Bid win-rates and project margins on new awards.
Client concentration and payment timelines for government contracts.
Quick reference: IPO timetable & terms
Open: 26 Aug 2025 | Close: 29 Aug 2025
Allotment: 1 Sep 2025 | Listing: 3 Sep 2025
Price band: ₹92–₹97 | Lot: 148 shares
Minimum (retail): ₹13,616 | Maximum (retail, 13 lots): ₹1,86,628
Issue size: ₹772 crore (Fresh ₹721 cr + OFS ₹51 cr)
Likely listing on: NSE & BSE
Final One-Minute Summary
What it is: Small-cap EPC company doing power, water, and rail projects across India.
Growth: Sales climbed from ₹524 cr (FY23) → ₹786 cr (FY24) → ₹916 cr (FY25) (your data). ROE cooled from 32% → 25% → 16% as the company scaled.
Pipeline: 44 ongoing projects in 16 states; strong order book and pan-India presence.
IPO terms: ₹92–₹97 band, ₹772 cr size, 26–29 Aug issue window, listing 3 Sep on NSE & BSE; 148-share lot (₹13,616 min).
Use of funds: Mainly working capital (~₹541 cr) + general purposes (~₹180 cr).
People: Founder/CMD: Rakesh Ashok Markhedkar; Promoters: Rakesh, Avinash & Nakul Markhedkar; COO: Dibyendu Ray; CFO: Ashish Bahety.
Pros: Infra tailwinds, diversified order book, asset-light model, experienced team.
Cons: High competition, government dependency, working-capital intensity, recent drop in bid success rate.
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