Vikran Engineering's Initial Public Offering (IPO) has witnessed robust investor interest, achieving full subscription within just two hours of opening. The Rs 772.00 crore IPO, which began accepting subscriptions on August 26, saw overwhelming demand across investor categories.

Subscription Details

By 12:46 pm on the first day of the IPO:

• Overall subscription: 1.10 times
• Retail investors' quota: 1.22 times subscribed
• Non-institutional investors' quota: 2.10 times subscribed

Grey Market Premium

In the grey market, Vikran Engineering's shares are trading at a premium of 17% over the IPO price.

• IPO Price: Rs 97.00 per share
• Implied listing price: Approximately Rs 113.49 per share

Company Overview

Vikran Engineering is an engineering, procurement, and construction (EPC) firm with a diverse portfolio:

• Operational segments: Energy, water infrastructure, railway, and solar
• Completed projects: 45 across 14 states
• Executed contract value: Rs 1,920.00 crore
• Current projects: 44 with a total order value of Rs 5,120.00 crore

Financial Performance

The company has shown growth in its recent financial results:

• Revenue: Increased by 16.5% to Rs 916.00 crore
• Profit After Tax (PAT): Grew by 4% to Rs 78.00 crore

Analyst Recommendations

Both Reliance Securities and Canara Bank Securities have recommended subscribing to the IPO, citing:

• Strong execution track record
• Alignment with government infrastructure initiatives

However, they also noted potential risks:

• Stretched working capital cycles
• Recent ban from railway electrification projects

IPO Details

• Issue size: Rs 772.00 crore
• Subscription opened: August 26

The strong initial response to Vikran Engineering's IPO reflects investor confidence in the company's business model and growth prospects. However, potential investors should carefully consider both the opportunities and risks associated with this investment before making a decision.

Vikran Engineering, a prominent player in the engineering, procurement, and construction (EPC) sector, has set the stage for its initial public offering (IPO) with an attractive price band and a notable grey market premium.

IPO Details

• Price Band: ₹92 to ₹97 per equity share
• Subscription Period: August 26 to August 29
• Grey Market Premium: Approximately 23% over the issue price

Offer Structure

The IPO comprises two components:

• Fresh issue worth ₹721.00 crore
• Offer for sale amounting to ₹51.00 crore

A significant portion of the fresh issue proceeds, ₹541.00 crore, is earmarked for funding the company's working capital requirements.

Company Overview

Vikran Engineering operates as an EPC firm with a diverse project portfolio spanning across:

• Energy sector
• Water infrastructure
• Railway projects
• Solar sector

Project Track Record

The company boasts an impressive track record:

• Completed 45 projects across 14 states
• Total executed contract value: ₹1,920.00 crore
• Currently maintaining 44 ongoing projects worth ₹5,120.00 crore

Key Clients

Vikran Engineering's client roster includes major players in the power and infrastructure sectors:

• NTPC
• Power Grid Corporation of India
• Various state power distribution companies

Financial Performance

The company has shown strong financial growth:

Market Sentiment

The 23% grey market premium indicates positive investor sentiment towards the IPO, suggesting strong market interest in Vikran Engineering's public offering.

As Vikran Engineering prepares to enter the public market, investors will be closely watching this IPO, given the company's strong project pipeline and financial growth trajectory in the EPC sector.