Vikran Engineering IPO: Should you subscribe?

Summary: Vikran Engineering is a small but fast-growing EPC player dealing with power, water supply, rail electrification and solar EPC projects. While it offers strong order visibility, there are risks related to its working capital intensity and a legal overhang. Is the IPO worth subscribing to? Take a look at its risks and strengths below. Vikran Engineering IPO will open for subscription on August 26, 2025 and close on August 29, 2025. The EPC player is raising Rs 721 crore from a fresh issue, and the offer also comprises an offer-for-sale of up to Rs 51 crore. We break down the company’s business, financials, strengths, risks and valuation to help you make an informed decision. What the company does Vikran is an engineering, procurement & construction (EPC) firm that executes end-to-end projects, from design and supply to installation, testing and commissioning, across power transmission, extra high voltage substations, water distribution, rail electrification, solar EPC and smart metering. The company operates across 22 states with nearly 190 project sites and a supplier base of more than 3,500 vendors that help in procurement and logistics. Track record and valuation Financially, Vikran has grown at a brisk pace. Between FY23 and FY25, revenues rose 32 per cent annually, while profits climbed 35 per cent per annum. Margins have also held up well, with EBIT margins of 17 per cent in FY25—the highest among its peers. Debt levels have moderated, with the debt-to-equity ratio improving to 0.6 in FY25 from 1.6 in FY23. At the upper end of the price band (Rs 97), the stock is valued at 32 times its FY25 earnings and 2.1 times the book value. Comparatively, peers trade at a median P/E of 36.7 times and an average P/B of 4 times. Vikran Engineering IPO details Total IPO size (Rs cr) 772 Offer for sale (Rs cr) 51 Fresh issue (Rs cr) 721 Price band (Rs) 92-97 Subscription dates August 26– 29, 2025 Pur