Indian equity markets reversed early losses to trade positively by mid-day Wednesday. The Sensex gained 139.35 points (0.17%) to 80,297.23, while the Nifty 50 advanced 57.45 points (0.23%) to 24,637.05.

Sector Performance

Metal stocks led the rally with Tata Steel surging 4.93% to ₹166.20, JSW Steel climbing 3.27% to ₹1,078.10, and Hindalco advancing 2.49% to ₹738.90. However, IT stocks weighed on indices, with Infosys declining 1.29% to ₹1,479.40 and TCS falling 0.42% to ₹3,098.50.

Market Breadth

Market breadth remained positive with 2,517 stocks advancing against 1,431 declines. The recovery reflected renewed buying interest in metal stocks and cautious optimism surrounding potential GST reforms as investors awaited outcomes from the ongoing GST Council meeting discussing a proposed two-slab structure.

Vikran Engineering's Market Debut

Amidst this market scenario, Vikran Engineering marked its debut on the stock exchange with a positive start. The company's shares commenced trading at ₹99.00 per share, representing a modest premium over its initial public offering (IPO) price of ₹97.00.

Market Reception

The stock's opening price reflects a gain of ₹2.00 or approximately 2.06% from its IPO price, indicating a favorable initial reception from investors.

IPO Details

Vikran Engineering had set its IPO price at ₹97.00 per share. The listing price of ₹99.00 demonstrates that the market's initial valuation aligns closely with the company's pricing strategy for its public offering.

Looking Ahead

As Vikran Engineering begins its journey as a publicly-traded entity, market participants will be watching its performance closely. The company's ability to execute its business strategies and deliver on its growth plans will likely influence its stock price movements in the near term.

Note: Stock prices can be volatile, especially during the initial days of trading, and may change rapidly.

Vikran Engineering, a company specializing in turnkey EPC projects, has concluded its Initial Public Offering (IPO) with robust subscription rates across investor categories. However, despite the strong interest, market indicators suggest a potentially modest debut on the stock exchanges.

IPO Details and Subscription

The Rs 772 crore IPO of Vikran Engineering witnessed an impressive subscription rate of nearly 25 times across all investor categories. The offering was priced at Rs 97 per share and comprised a fresh issue of Rs 721 crore along with an offer for sale worth Rs 51 crore. This pricing structure positions the company with an approximate market capitalization of Rs 2,500 crore.

Company Profile and Financial Performance

Vikran Engineering, backed by notable investors Ashish Kacholia and Mukul Aggarwal, has established itself in key infrastructure sectors. The company's expertise lies in executing turnkey EPC (Engineering, Procurement, and Construction) projects across power transmission, water supply, and railway electrification.

The company has demonstrated strong financial growth:

• Revenue grew at a Compound Annual Growth Rate (CAGR) of 32%, reaching Rs 916.00 crore.
• Net profit increased from Rs 43.00 crore to Rs 78.00 crore.

Current Projects and Order Book

Vikran Engineering boasts a robust project pipeline:

• An unexecuted order book valued at Rs 2,442.00 crore
• Currently executing 44 ongoing projects with a cumulative worth of Rs 5,120.00 crore

Market Expectations and Valuation

Despite the strong subscription numbers, market sentiment suggests a cautious outlook:

• The grey market premium indicates potential listing gains of around 4%, which can be considered modest.
• The IPO was valued at 22 times earnings, compared to the 31-39 times valuation range of listed peers.

Potential Concerns

Investors and analysts have highlighted a few areas of concern:

1. Working capital requirements for the company's operations
2. A regulatory ban imposed by the Railway Board, which could impact future projects and growth

While Vikran Engineering's IPO has garnered significant interest from investors, the market appears to be taking a measured approach to its listing. The company's strong order book and financial growth are balanced against sectoral challenges and regulatory issues, setting the stage for an interesting market debut.