Vikran Engineering Limited, an EPC and infrastructure company, is making headlines with its recent dividend announcement and upcoming Initial Public Offering (IPO). The company has declared a 5% dividend for its equity shareholders and is poised to launch its IPO, aiming to raise Rs 772.00 crore.

Dividend Announcement

During its Annual General Meeting held on August 25, Vikran Engineering Limited announced a 5% dividend on profits to its equity shareholders. This announcement comes just one day before the company's IPO opening, potentially boosting investor confidence.

Anchor Investment Success

Ahead of its public offering, Vikran Engineering has successfully raised Rs 232.00 crore from anchor investors. The company allotted 2.38 crore equity shares at Rs 97.00 each to 14 institutions, including:

• Nippon India
• 360 One
• Bank of India Mutual Fund
• ITI Mutual Fund
• SBI General Insurance
• Bengal Finance & Investments

Notably, domestic mutual funds secured 36.7% of the anchor allotment, indicating strong institutional interest in the company.

IPO Details

The IPO is scheduled to open on August 26 and close on August 29. Here are the key details of the offering:

Allocation Structure

The IPO has a structured allocation for different categories of investors:

• Qualified Institutional Buyers (QIBs): 50%
• Non-Institutional Investors (NIIs): 15%
• Retail Investors: 35%

Backing and Use of Proceeds

Vikran Engineering is backed by notable investors, including The Wealth Company, Ashish Kacholia, and Mukul Aggarwal. The company plans to use the net proceeds from the IPO to fund working capital requirements and for general corporate purposes.

The combination of a dividend announcement, successful anchor investment, and a structured IPO indicates Vikran Engineering's strategic approach to entering the public market. Investors will be watching closely as the IPO unfolds in the coming days.

Vikran Engineering Ltd. has successfully raised Rs 231.6 crore from anchor investors, marking a strong start to its initial public offering (IPO) process. The company allocated 2.38 crore shares at Rs 97 each to 14 anchor investors, setting the stage for its upcoming public offering.

Anchor Allocation Highlights

• Total Funds Raised: Rs 231.6 crore
• Number of Shares Allotted: 2.38 crore
• Price per Share: Rs 97

The anchor book saw significant interest from both foreign and domestic investors:

• Societe Generale-ODI received the highest allocation at 11.5%
• Bank of India Small Cap Fund secured 10% of the anchor portion
• Four domestic mutual funds collectively obtained 36.70% of the anchor portion through 11 schemes

IPO Details

Vikran Engineering's IPO is scheduled to open on August 26 and close on August 29. The company aims to raise up to Rs 772 crore through this offering, which comprises:

• Fresh issue of Rs 721 crore
• Offer for sale of Rs 51 crore

The price band for the IPO has been set at Rs 92-97 per share. Retail investors can participate with a minimum investment of Rs 13,616.

Use of Proceeds

The company plans to utilize Rs 541 crore from the IPO proceeds to fund its working capital requirements for fiscal years 2025 and 2026.

Recent Financial Performance

Vikran Engineering has demonstrated strong financial growth:

The company's EBITDA margins expanded to 17.5%, reflecting improved operational efficiency.

As Vikran Engineering prepares to enter the public market, the strong response from anchor investors suggests positive sentiment towards the company's growth prospects and financial performance. Investors interested in the IPO should carefully review the company's prospectus and consider their financial goals before making an investment decision.

Conclusion

Vikran Engineering's successful anchor book building and strong financial performance indicate a promising start to its IPO journey. However, as with any investment, potential investors should conduct thorough research and consider their risk tolerance before participating in the offering.