Vikran Engineering Files for Rs 1,000 Crore IPO to Expand Operations

Vikran Engineering, an EPC company, has filed a draft prospectus with Sebi to raise Rs 1,000 crore through an IPO. The funds will be used for working capital and corporate purposes. The offering includes Rs 900 crore of new shares and Rs 100 crore from a promoter sale.

Vikran Engineering, a Mumbai-based EPC company, has officially filed a draft prospectus with the Securities and Exchange Board of India (Sebi) to raise Rs 1,000 crore through an Initial Public Offering (IPO).

The IPO will consist of a fresh issue of shares worth up to Rs 900 crore, complemented by an Offer For Sale (OFS) worth up to Rs 100 crore from the promoter, according to the draft prospectus.

The proceeds from the fresh issue will see Rs 625.5 crore allocated to funding the company's working capital needs, alongside general corporate purposes.

Pre-IPO investors backing Vikran Engineering include India Inflection Opportunity Fund and Ashish Kacholia.

As a rapidly growing EPC company, Vikran Engineering covers end-to-end services from conceptualization to commissioning on a turnkey basis. By August 31, 2024, they had accomplished work in 22 states, completing 44 projects across 11 of them, with 34 ongoing projects in 17 states.

The company's order book increased significantly to Rs 2,114.80 crore in FY24 from Rs 517.34 crore in FY22.

Notably, Vikran Engineering's revenue from operations surged 49.56 percent to Rs 791.43 crore in fiscal 2024, compared to Rs 529.18 crore the previous year. Profit after tax saw remarkable growth of 74.67 percent, reaching Rs 74.83 crore for fiscal 2024, up from Rs 42.84 crore the previous year.

The IPO will be managed by book-running lead managers Pantomath Capital Advisors and Systematix Corporate Services.

(With inputs from agencies.)