grow your investment.
Vikram Engineering IPO Review 2025 – Complete Analysis with Details,
Vikram Engineering Limited is coming up with its Initial Public Offering (IPO) in the Indian market. The company is a fast-growing player in infrastructure projects, especially in power transmission, distribution, and water infrastructure. In this article, we will provide a complete Vikram Engineering IPO review, including IPO details, company overview, strengths, risks, financial performance, peer comparison, valuations, and grey market premium (GMP).
IPO Size: ₹772 crore
Fresh Issue: ₹721 crore
OFS (Offer for Sale): ₹51 crore by promoter Rakesh Ashok Markhedkar
IPO Open Date: August 26, 2025
IPO Close Date: August 29, 2025
Price Band: ₹92 – ₹97 per share
Lot Size: 148 shares
Minimum Investment: ₹13,616 (at lower band), ₹14,356 (at upper band)
Allotment Date: September 1, 2025
Listing Date: September 3, 2025
Utilization of Funds:
₹541 crore for working capital requirements
Remaining for general corporate purposes
Business Overview of Vikram Engineering
Vikram Engineering Limited is an Engineering, Procurement, and Construction (EPC) company that provides end-to-end services for infrastructure projects. Its operations include conceptualization, design, supply, installation, testing, and commissioning.
Key Business Verticals:
Power Transmission & Distribution
Executes high-voltage transmission lines up to 765 kV and substations up to 400 kV.
Worked on schemes like RGGVY, DDUGJY, and Saubhagya Yojana.
Water Infrastructure
Provides turnkey solutions for surface and underground drinking water projects.
Works on water distribution networks, rainwater harvesting, and Jal Jeevan Mission projects.
Railway Infrastructure
Specializes in railway electrification projects, overhead electrification, and traction substations.
The company has executed projects for government entities, PSUs, and private players across 22 states and is currently active in 16 states.
Industry Outlook.
Power Sector: India allows private participation through Tariff-Based Competitive Bidding (TBCB), increasing competition and investment.
Water Sector: More than 90% of pure water projects are executed through EPC contracts, creating opportunities for companies like Vikram Engineering.
Railways: The National Rail Plan 2030 aims to make the Indian railway system future-ready and increase freight traffic share to 45%.
These government initiatives provide long-term growth potential for EPC companies.
Strengths of Vikram Engineering.
Strong Revenue Growth – Revenue CAGR of 32.17% (FY23–FY25).
Diversified Order Book – Order book worth ₹2,442.44 crore as of June 30, 2025.
Pan-India Presence – Projects across 16 states with 190+ sites.
Asset-Light Business Model – Uses leased equipment, resulting in lower fixed costs and a high asset turnover ratio of 111.27 (FY25).
In-house Technical Capabilities – Experienced design and engineering teams ensuring timely project execution.
Experienced Management – Promoter and MD, Rakesh Ashok Markhedkar, has over 34 years of EPC experience.
Risks and Weaknesses.
Dependence on Competitive Bidding – Failure to win contracts may impact growth.
Regulatory Issues with Railways – Temporary ban (2024) stayed by Delhi High Court; outcome pending.
High Working Capital Requirement – ₹680.22 crore, 50% of total assets.
Declining Order Book – FY25 order book smaller than FY24.
Customer Concentration Risk – Top 5 customers contributed 69.48% revenue in FY25.
Weak Debt Service Coverage Ratio (DSCR) – Less than 1 in the last three years.
Financial Performance.
Revenue Growth: CAGR of 32.17% (FY23–FY25).
EBITDA: Increased from ₹79.7 crore (FY23) to ₹160.24 crore (FY25).
EBITDA Margin: 17.5% in FY25 (best among peers).
PAT: Grew from ₹42.84 crore (FY23) to ₹77.82 crore (FY25).
ROE: Declined to 16.63% in FY25 (due to equity infusion).
ROCE: 23.34% in FY25 vs 30.43% in FY24.
Debt to Equity Ratio: Reduced from 1.18 to 0.58.
Cash Flows: Negative operating cash flows in FY24 and FY25 due to high working capital needs.
Peer Comparison.
Compared with Kalpataru Projects, KEC International, Techno Electric, SPML Infra, Bajel Projects, and Trans Rail Lighting:
Revenue: Much smaller scale than Kalpataru and KEC.
EBITDA Margin: 17.5% (highest among peers).
PAT Margin: 8.44% (strong profitability).
Order Book to Revenue Ratio: 223.22% – lower than some peers.
ROCE & ROE: Better than most peers except Trans Rail.
Debt to Equity: 0.58, reasonable compared to peers.
Valuation of Vikram Engineering IPO.
P/E Ratio: 32.15x – slightly higher than Trans Rail but lower than major peers.
Valuations look fair considering strong growth potential and high profitability margins.
Grey Market Premium (GMP).
The Vikram Engineering IPO GMP shows some positive sentiment in the grey market. However, investors should note that GMP is not an accurate predictor of listing gains, as it depends on market sentiment, subscription numbers, and overall conditions.
Analyst Recommendations.
Canara Bank Securities: Subscribe (for high-risk investors).
Arihant Capital: Subscribe (strong growth potential & government initiatives).
SBI Securities: Neutral (prefers to monitor post-listing performance).
Conclusion – Should You Invest in Vikram Engineering IPO?
The Vikram Engineering IPO review highlights that the company operates in high-growth infrastructure segments with strong government focus. It has shown robust revenue growth, healthy margins, and efficient capital utilization.
However, risks like regulatory litigation, working capital stress, and customer concentration cannot be ignored. Investors with a high-risk appetite and long-term horizon may consider subscribing, while conservative investors should wait and watch.
Disclaimer: This article is for educational purposes only and not a buy or sell recommendation. Please do your own research or consult a financial advisor before investing.
Recommended
All Time Plastics IPO Review |
IPO GMP, Analyst Ratings,
Business and more.
All time plastics company that manufactures
plastic consumer goods....
Best Mutual Funds 2025 India:
A Data-Backed Guide.
We spent 7 months analyzing over 1500
mutual funds across 50+ parameters...
How to Create BEST Mutual
Fund PORTFOLIO 2025?
When it comes to building wealth through
mutual funds, one of the most common...
What Are ETFs and Why They
Might Be Better Than
Mutual Funds?
In recent years, the popularity of ETFs
(Exchange-Traded Funds) in India has...
Top AI Stocks in India To watch
in 2025.
In today’s discussion, we will look at the
top five AI (Artificial Intelligence) ...
Related Articles
