Vikran Engineering IPO:  GMP, Pros, Cons, and Financial Track Record 

By Finchetak.com August 25, 2025 — Vikran Engineering is coming up with a ₹772 crore IPO that will open for subscription from August 26 to August 29, 2025. The company has fixed the price band at ₹92–₹97 per share. Market sentiment is already strong, with the issue showing premium signs in the grey market. 

Vikran Engineering IPO – Grey Market Premium (GMP)

• As of August 25, 2025, the GMP stands around ₹17–₹18 per share, which is about 17–18% above the upper issue price of ₹97. This points to a possible listing price near ₹114–₹115.

• A few days earlier, the GMP had touched ₹22, showing strong investor demand at that time.
  
  

• Currently, the GMP trend suggests steady but slightly moderated enthusiasm compared to last week.

• Revenue has grown steadily, nearly doubling in three years.
  
  

• Profit after tax has also improved, though the jump from FY 24 to FY 25 was modest.
  
  

• Net worth has more than tripled, showing strong financial health.
  
  

• The company maintains a moderate debt-to-equity ratio of 0.58 and good return ratios, with ROE around 16.6% and ROCE at 23.3%.
  
  

Business Strengths

• Diversified Projects: Active in power, water, railways, and solar EPC sectors.
  
  

• Strong Order Book: Over ₹5,000 crore worth of projects, giving good revenue visibility.
  
  

• Asset-Light Model: Rents equipment instead of owning, which helps reduce costs.
  
  

• Reputed Clients: Works with leading government companies like NTPC and Power Grid.
  
  

• Experienced Leadership & Investor Backing: Strong promoter holding and support from well-known investors.
  
  

Risks and Challenges

• High Valuation: The IPO valuation is higher than industry averages, which could limit long-term returns.
  
  

• Dependence on Government Projects: A large part of revenue comes from government contracts, which may face delays in payments or approvals.
  
  

• Working Capital Needs: Large projects require heavy upfront spending, creating cash flow pressure.
  
  

• Execution Risk: With multiple projects across states, delays or cost overruns are possible.
  
  

• Regulatory Concerns: A past integrity issue flagged by authorities could affect new project awards.
  
  

Conclusion

Vikran Engineering has shown solid growth in revenue and profit over the past three years, backed by a large and diversified order book. The company’s asset-light model and reputed clients add to its strengths. However, high valuation, dependence on government contracts, and execution challenges remain key risks.