Upcoming IPO: Ashish Kacholia, Mukul Agrawal-backed Vikran Engineering files draft papers with SEBI for ₹1,000-cr IPO

Upcoming IPO: Vikran Engineering Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Vikran Engineering, based in Mumbai, operates as an Engineering, Procurement & Construction (EPC) firm, focusing on power, water, and railway infrastructure projects. The company offers comprehensive services covering conceptualisation, design, supply, installation, testing, and commissioning on a turnkey basis. It adopts an asset light approach, allowing it to fulfil more orders with minimal investment in fixed assets.

The company has a strong presence in various sectors, such as power, water, and railway infrastructure, and is guided by its CMD, Rakesh Ashok Markhedar, and Avinash Markedkar, both of whom have accumulated over 30 years of experience in the EPC industry.

Some organisations it serves are NTPC Ltd, Power Grid Corporation of India Ltd, South Bihar Power Distribution Co. Ltd, North Bihar Power Distribution Co. Ltd, Transmission Corporation of Telangana Limited, Madhya Pradesh Power Transmission Company Limited, Madhya Pradesh Madhya Kshetra Vidyut Vitran Company Limited, District Water and Sanitation Mission (PHED) and State Water and Sanitation Mission (SWSM).

In FY22, the company's order book rose to ₹2114.80 crore from ₹517.34 crore. Vikran Engineering's revenue from operations for fiscal 2024 increased by 49.56% to ₹791.43 crore compared to ₹529.18 crore in fiscal 2023. Profit after tax also saw a 74.67% increase to ₹74.83 crore for fiscal 2024 from ₹42.84 crore for fiscal 2023.

Issue details

The IPO comprises a combination of a fresh issue of shares amounting to ₹900 crore and an offer for sale (OFS) of up to ₹100 crore by promoter selling shareholders Rakesh Ashok Markhedkar.

The funds generated from the fresh issue, up to ₹625.5 crore, will be allocated towards financing the company's working capital needs and general corporate purposes.

Pre-IPO investors include India Inflection Opportunity Fund (IIOF) (5.82%), Ashish Kacholia (2.14%), Mukul Agrawal (1.48%), and Negen AIF, in addition to other family offices and high net worth individuals, are supporting the company.

The book-running lead managers are Systematix Corporate Services Ltd and Pantomath Capital Advisors Private Ltd.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.