Vikran Engineering made a rather muted debut. The stock is listed at Rs 99 on the National Stock Exchange, a premium of mere 2% to the issue price. The stock is listed at Rs 99.70 on the BSE, a premium of 2.7%.
Vikran Engineering IPO: GMP trend
Vikran Engineering was trading at Rs 101.1 in the grey markets a day ahead of its. On August 25, 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. However, this soon fell significantly.
Vikran Engineering IPO: Subscription dates
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: Price band and allotment
The company set the price band in a range of Rs 97 per equity share. The allotment for Vikran Engineering IPO was finalised on September 1.
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
Vikran’s initial issue is available at 17.3x EV/EBITDA, which is much lower than its peer average of 32.0x EV/EBITDA. “We believe the issue is attractively priced, as its growth in terms of revenue and EBITDA has trended in a similar range to its peers, while it is available at a much lower valuation. We assign a ‘Subscribe’ rating to the issue,” said Deven Choksey Research.