Ashish Kacholia-backed Vikran Engineering IPO fully subscribed on Day 1; check GMP and other details

The ₹772-crore initial public offering (IPO) of Vikran Engineering, backed by ace investors Ashish Kacholia and Mukul Agrawal, started on a robust note, with the issue fully subscribed within a few hours of opening. The IPO of the infrastructure EPC company was subscribed 1.7 times by 2:45 p.m., attracting bids for 9.98 crore shares against the 5.87 crore shares offered across categories, the exchange data showed.

The issue garnered strong demand from non-institutional investors (NIIs) and retail individuals, with the quota reserved for them receiving 3.37 times and 1.8 times subscription, respectively. The portion reserved for qualified institutional buyers (QIBs) was booked 0.26 times.

According to the RHP filed with Sebi, the Mumbai-based company has reserved half of the issue for qualified institutional buyers (QIBs), up to 15% for non-institutional investors (NIIs), and the remaining 35% for retail investors.

In the grey market, Vikran Engineering shares were commanding a premium of ₹18 per share over the issue price. The grey market premium (GMP) dropped from ₹21 in the previous session.

The Vikran Engineering IPO will close on August 29. The allotment of shares is likely to be finalised on September 1, while the tentative listing date on the BSE and NSE is September 3.

The issue comprises a fresh issue of 7.43 crore shares worth ₹721 crore and an offer for sale (OFS) of 0.53 crore shares aggregating to ₹51 crore by the company’s Chairman and Managing Director, Rakesh Ashok Markhedkar. The price band for the IPO is ₹92-97 per share, and the market capitalisation of the company is pegged at around ₹2,502 crore at the upper end of the issue price.

The engineering, procurement, and construction company intends to use IPO proceeds from the fresh issuance to the extent of ₹541 crore for meeting working capital requirements, with the balance allocated for general corporate purposes.

Raises ₹231.60 crore from anchor investors

Ahead of the IPO opening, Vikran Engineering raised ₹231.60 crore from 14 anchor investors. The company informed the bourses that it allocated 2.39 crore equity shares at ₹97 per share to anchor investors, including domestic mutual funds, insurance companies, global fund houses, and domestic AIFs.

Some of the marquee institutions that participated in the anchor round are Nippon India Equity Opportunities Fund, 360 One Equity Opportunity Fund, Bank of India Mutual Fund, ITI Mutual Fund, SBI General Insurance Company Limited, and Bengal Finance & Investments Pvt Ltd, among others, the exchange data showed.

Out of the total allocation of equity shares to the anchor investors, around 36.70% of the total anchor book size was allocated to domestic mutual funds.

Announces 5% dividend

Ahead of the opening of the IPO, Vikran Engineering also declared a dividend of 5% of profits to its equity shareholders during its Annual General Meeting (AGM) held on August 25, 2025.

The company’s revenue from operations increased by 16.53% from ₹785.95 crore in FY24 to ₹915.85 crore in FY25, primarily due to higher income from EPC services and an increase in awarded projects. Profit after tax also rose by 3.99% from ₹74.83 crore in FY24 to ₹77.82 crore in FY25.

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