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.

Vikran Engineering Ltd., a Mumbai-based company specializing in end-to-end engineering services, has announced its Initial Public Offering (IPO) with a price band of Rs 92-97 per share. The IPO is scheduled to open on August 26 and close on August 29, offering investors a window to participate in the company's public listing.

IPO Details

The IPO comprises two components:

• A fresh issue of shares worth up to Rs 721.00 crore
• An offer-for-sale (OFS) of Rs 51.00 crore

Use of Proceeds

Vikran Engineering has outlined its plans for utilizing the funds raised through the fresh issue:

• Rs 541.00 crore will be allocated for working capital requirements for fiscal years 2025 and 2026
• The remaining amount will be used for general corporate purposes

Key Dates

Company Overview

Vikran Engineering Ltd. is a prominent player in the engineering services sector, focusing on power, water, and railway infrastructure. The company serves a diverse clientele, including notable names such as:

• NTPC Ltd.
• Power Grid Corp.
• Eastern Central Railway

Management and Promoter Participation

Rakesh Ashok Markhedkar, the Chairman and Managing Director of Vikran Engineering, is the sole promoter participating in the offer-for-sale component of the IPO.

Investor Considerations

Potential investors should note that this IPO presents an opportunity to invest in a company with a strong presence in critical infrastructure sectors. However, as with all investments, it is advisable to carefully review the company's financials, growth prospects, and risk factors before making an investment decision.

The IPO's price band and the company's focus on essential sectors like power, water, and railway infrastructure may attract investor interest. The allocation of a significant portion of the proceeds towards working capital requirements suggests that Vikran Engineering is positioning itself for potential growth and expansion in the coming years.