The VIkran Engineering IPO has yet to have a confirmed date of announcement. As a book-built issue, VIkran Engineering plans to raise approximately ₹1,000 crores through this IPO. This includes a fresh issue of ₹900 crores and an offer for sale (OFS) of up to [.] equity shares, each with a face value of ₹1. The allocation is structured with a retail quota of 35%, Qualified Institutional Buyers (QIBs) receiving 50%, and High Net-worth Individuals (HNIs) having a set 15% as per the Draft Red Herring Prospectus (DRHP). The shares will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Based in Mumbai, VIkran Engineering has submitted its DRHP to the Securities and Exchange Board of India (SEBI) for an IPO valued at ₹1,000 crores, which includes ₹900 crores from fresh issue and an OFS worth ₹100 crores from the promoter, Rakesh Ashok Markhedkar. The company has garnered interest from prominent pre-IPO investors, including the India Inflection Opportunity Fund, Ashish Kacholia, Mukul Agarwal, and various family offices and HNI investors.
Bigshare Services is appointed as the registrar for the public issue, while Pantomath Capital Advisors and Systematix Corporate Services serve as the book-running lead managers for the IPO.
The company aims to allocate ₹625.5 crores of the fresh issue proceeds to fund working capital requirements, with the remainder directed towards general corporate purposes.
Founded in 2015 by Rakesh Ashok Markhedkar, IIkran Engineering boasts an extensive experience of over 34 years in executing various projects across approximately 22 states in India, showing a significant revenue increase in the financial year 2024. The company reports a Return on Capital Employed (ROCE) of 31% and a Return on Equity (ROE) of 30%. Furthermore, non-current assets rose from ₹10.72 crores in 2022 to ₹18.13 crores in 2023, while current assets increased significantly from ₹351.70 crores to ₹467.04 crores.
VIkran Engineering specializes in power transmission and railway infrastructure and has expanded into water infrastructure, telecommunications, and track laying. The company possesses unique strengths, including geographical and sector diversification, experienced promoters, a scalable operational framework, and a robust financial risk profile. It has successfully completed 45 km of transmission projects across various states, establishing a strong presence in the market.
VIkran Engineering IPO Prospectus:
| DRHP Draft Prospectus: | Available upon request |
| RHP Draft Prospectus: | To Be Updated Soon |
Financial Overview of VIkran Engineering
Amount (₹ in Crores)
| Period Ended | Revenue | Expenses | Profit After Tax |
| 2022 | ₹479.57 | ₹470.21 | ₹6.60 |
| 2023 | ₹529.18 | ₹476.51 | ₹42.94 |
| 2024 | ₹791.44 | ₹688.69 | ₹74.62 |
VIkran Engineering IPO Valuation for FY2024
The valuation metrics for the VIkran Engineering IPO include key indicators such as Earnings Per Share (EPS), Price/Earnings (P/E) Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV).
| Earnings Per Share (EPS): | 4.92 (Basic) |
| Price/Earnings (P/E) Ratio: | N/A |
| Return on Net Worth (RoNW): | 25.69% |
| Net Asset Value (NAV): | ₹17.20 |
Peer Comparison Overview
| Company | EPS | P/E Ratio | RoNW % | NAV | Income |
| Bajel Projects Ltd | 0.37 | 689.32 | 0.76% | 49.11 | ₹1,169.21 Cr. |
| Kalpataru Projects International Ltd | 31.37 | 42.11 | 10.09% | 314.74 | ₹19,626.43 Cr. |
| Techno Electric & Engineering Company Ltd | 24.94 | 64.25 | 12.41% | 201.01 | ₹1,502.38 Cr. |
| SPML Infra Ltd | (1.42) | NA | (0.35)% | 94.63 | ₹1,318.97 Cr. |
| KEC International Limited | 13.49 | 75.61 | 8.47% | 159.31 | ₹19,914.17 Cr. |
Objectives of the Issue
- To fund working capital requirements of the company;
- For general corporate purposes.
IPO Lead Managers (Merchant Bankers)
- Pantomath Capital Advisors Private Limited
- Systematix Corporate Services Limited
