Vikran Engineering's Initial Public Offering (IPO) has gotten off to a robust start, with investors showing significant interest on the first day of subscription. The IPO, which opened on August 26, was oversubscribed 2.38 times, driven primarily by strong demand from non-institutional and retail investors.

IPO Details

The IPO comprises a fresh issue of shares worth Rs 721 crore and an offer-for-sale component of Rs 51 crore. Vikran Engineering has set the price band for its shares at Rs 92-97 per share. For retail investors, the minimum investment required is Rs 13,616 for a lot of 148 shares.

Subscription Status

The strong initial response to the IPO indicates investor confidence in Vikran Engineering's business model and growth prospects. The oversubscription of 2.38 times on the first day itself is a positive sign for the company.

Grey Market Premium

The grey market, often considered an unofficial indicator of investor interest, is showing a premium of Rs 13 for Vikran Engineering shares. This suggests a potential listing gain of 13.40%, with an implied listing price of Rs 110.00.

Company Profile

Vikran Engineering, based in Mumbai, is a provider of turnkey engineering services across various infrastructure sectors. The company's key focus areas include:

1. Power infrastructure
2. Water infrastructure
3. Railway infrastructure

The company boasts a notable client roster, including major public sector entities such as:

• NTPC (National Thermal Power Corporation)
• Power Grid Corporation of India
• Eastern Central Railway

IPO Timeline

Investors and market watchers should note the following key dates:

Note: Listing will be on both BSE and NSE

Outlook

The strong initial response to Vikran Engineering's IPO, coupled with its diverse portfolio of infrastructure projects and reputable client base, suggests investor confidence in the company's business model. However, as with all investments, potential investors are advised to carefully review the company's financials, growth strategy, and risk factors before making an investment decision.

As the IPO progresses, it will be interesting to see if the subscription levels maintain or surpass the first day's momentum. The eventual listing price and post-listing performance will be closely watched by investors and market analysts alike.

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.