Vikran Engineering is expected to list at a price of Rs 101.1 on the bourses, as the grey market premium indicates. This implies a premium of 4.23% to the issue price, indicating a profit of Rs 606.8 on a single lot. The company set the price band in a range of Rs 97 per equity share.
The issue opened on August 26 for bidding. The subscription period stretched to four days, ended on August 29. The book build issue of Rs 772 crore was a combination of fresh issue of 7.43 crore shares aggregating to Rs 721 crore and an offer for sale of 0.53 crore shares aggregating to Rs 51 crore.
Vikran Engineering IPO: Allotment and listing
The allotment for Vikran Engineering IPO was finalised on September 1. The IPO will be debuting in the secondary markets on September 03, as per the tentative schedule. It will be listed on NSE and BSE.
Vikran Engineering IPO: GMP
The stock was trading at a price of Rs 118 in the grey market premium, fetching a premium of Rs 21 to the issue price on August 25. However, this soon fell significantly ahead of the listing to Rs 101.1. This is a premium of mere 4.1% to the issue price.
The GMP is an unofficial place where shares change hands illegally ahead of listing. The markets regulator SEBI cautions people about trading in the illegal market.
Vikran Engineering IPO: Lot size
Vikran Engineering’s lot size for a retail application is 148 shares, amounting to Rs 14,356. The lot size investment for a small NII is 14 lots of 2,072 shares, aggregating to Rs 2 lakh, and for a big NII, it is 70 lots of 10,360 shares, totalling Rs 10 lakh.
Vikran Engineering IPO: Book runners and registrar
Pantomath Capital Advisors is working as the book-running lead manager for the issue, while Bigshare Services handled the work of the registrar of the IPO.
About Vikran Engineering
Vikran Engineering is an Engineering, Procurement, and Construction (EPC) company. The company’s projects include underground water distribution and surface water extraction, overhead tanks, and distribution networks. The company’s clients in the government sector include NTPC, Power Grid Corporation of India, South Bihar Power Distribution, North Bihar Power Distribution Co., and many more.
Vikran Engineering IPO: Expert take
“On the valuation front, based on annualised FY25 earnings, the company is seeking a P/E of 32.1 times, and a post-issue market capitalisation of around Rs 2,501.7 crore, making the issue appear fully priced,” said Anand Rathi Research in an IPO note.
With a consistent track record of executing large-scale projects along with an asset-light model for marquee government and public sector clients and a PAN India presence, Vikran Engineering is well-positioned to capitalise on opportunities in the high-growth infrastructure sector. “Considering its scalability, financial strength, and sectoral tailwinds, we assign a ‘Subscribe for Long term’ rating for the IPO,” added the report.