Vikran Engineering Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Vikran Engineering Limited IPO aimed at raising ₹1,000 crore. The IPO comprises a fresh issue of ₹900 crore and an Offer for Sale (OFS) of ₹100 crore by promoter Rakesh Ashok Markhedkar.
Vikran Engineering Limited IPO Details
- Issue Size: ₹1,000 crore
- Fresh Issue: ₹900 crore
- Offer for Sale (OFS): ₹100 crore by promoter Rakesh Ashok Markhedkar
- Face Value: Re. 1 per equity share
- Price Band: To be announced
- Lot Size: To be announced
- IPO Opening & Closing Dates: To be announced
- Listing Exchanges: BSE and NSE
- IPO Type: Book Building
- Registrar: Bigshare Services Pvt Ltd
- Book Running Lead Managers (BRLMs): Pantomath Capital Advisors and Systematix Corporate Services
Vikran Engineering Limited IPO Dates
- IPO Open Date: To be announced
- IPO Close Date: To be announced
- Allotment Date: To be announced
Promoters of Vikran Engineering Limited
Vikran Engineering Limited is promoted by the Markhedkar family, with Mr. Rakesh Ashok Markhedkar as the Chairman and Managing Director. He is supported by family members who hold key positions and significant shareholdings in the company.
1. Rakesh Ashok Markhedkar
- Role: Chairman & Managing Director
- Background: Founder of Vikran Engineering in 2015, Mr. Markhedkar has 34 years of experience in the infrastructure sector. Under his leadership, the company has expanded its presence across 22 Indian states, specializing in power transmission, water infrastructure, and railway electrification.
2. Avinash Ashok Markhedkar
- Role: Director
- Background: Appointed as a director on November 2, 2015, Avinash has been instrumental in the company’s growth. He is involved in strategic decision-making and oversees various operational aspects.
3. Nakul Markhedkar
- Role: Director
- Background: Appointed on February 1, 2024, Nakul represents the next generation of leadership within the company. He is actively involved in business development and operational management.
4. Vipul Markhedkar
- Role: Promoter Group Member
- Background: While not a director, Vipul holds a significant stake in the company and contributes to its strategic initiatives.
5. Kanchan Markhedkar
- Role: Promoter Group Member
- Background: Kanchan is part of the promoter group, holding a notable share in the company and supporting its governance.
Shareholding Structure (Pre-IPO)
As of the latest filings, the shareholding distribution is as follows:
Promoters
- Rakesh Ashok Markhedkar: 59.02%
- Nakul Markhedkar: 7.24%
- Avinash Markhedkar: (Data not specified)
Promoter Group
- Vipul Markhedkar: 7.24%
- Kanchan Markhedkar: 7.24%
Total Promoter & Promoter Group Holding: 81.78% of the company’s paid-up equity share capital.
The Markhedkar family’s leadership and substantial ownership underscore their commitment to Vikran Engineering’s growth and strategic direction.
Vikran Engineering Limited IPO GMP
As of now, the Grey Market Premium (GMP) for Vikran Engineering Limited’s IPO has not been officially disclosed. This is primarily because the company has not yet announced the IPO’s price band, opening and closing dates, or lot size. Without these critical details, grey market trading for this IPO has not commenced.
The GMP is an informal indicator of investor sentiment and potential listing gains, but it is not a guaranteed predictor of the stock’s performance upon listing. Investors should exercise caution and not rely solely on GMP figures when making investment decisions.
For the most accurate and up-to-date information on Vikran Engineering Limited’s IPO, including GMP once available, consider monitoring reputable financial news platforms and official announcements from the company.
About Vikran Engineering Limited
Vikran Engineering Limited is a prominent Engineering, Procurement, and Construction (EPC) company based in Thane, Maharashtra, India. Established in 2008, the company has rapidly expanded its operations across various infrastructure sectors, including power transmission and distribution, water infrastructure, railway and metro electrification, and renewable energy projects.
Company Overview
- Founded: 2008
- Headquarters: Thane, Maharashtra, India
- Promoter & Chairman: Mr. Rakesh Ashok Markhedkar
- Employee Strength: Approximately 500–1,000 employees
- Operational Presence: Active in 22 Indian states
Projects:
- Completed: 44 projects
Core Services
- Power Transmission Lines: Construction of high-voltage transmission lines up to 765 kV.
- EHV (GIS/AIS) Substations: Turnkey solutions for high-voltage substations, including Gas Insulated Substations (GIS) and Air Insulated Substations (AIS) up to 400 kV.
- Power Distribution: Electrification projects for rural and remote areas, ensuring seamless access to energy.
- Solar Power: Turnkey solar photovoltaic (PV) projects up to 100 MWp and balance of system (BoS) projects for solar power plants up to 300 MWp.
- Railway and Metro Electrification: Design and execution of overhead electrification (OHE), traction substations, and transmission networks.
- Water Infrastructure: Turnkey solutions for water treatment plants, distribution networks, and rainwater harvesting systems.
Milestones & Achievements
- 2014: Acquisition by the Markhedkar family, leading to a strategic transformation of the company.
- 2016: Received the “Fastest Growing Indian Company Excellence Award” by the International Achievers Conference.
- 2018: Honored with multiple Excellence Awards by the Chief Minister of Bihar.
2020:
- Secured a 500 MVA, 400 kV power transformer substation order from Power Grid Corporation of India Limited (PGCIL) at Muzaffarpur.
- Awarded its first railway electrification order by the Central Organization for Railway Electrification (CORE).
- Received a prestigious 132 kV GIS substation order from Maharashtra State Electricity Transmission Company Limited (MSETCL) for the Bullet Train project.
2021:
- Chairman Mr. Rakesh Markhedkar received the “Leading Director Award 2021” for Strategies & Outstanding Achievements by Greentech Foundation.
- Secured a significant order worth ₹723.86 crore from Andhra Pradesh Central Power Distribution Corporation Limited (APCPDCL) under the YSR Vvyavasayam Vidyut Pathakam.
- 2022: Entered the water infrastructure segment with a ₹254.34 crore project in Betul district, Madhya Pradesh, as part of the “Prime Minister Har Ghar Jal Yojana.”
2023:
- Chairman Mr. Rakesh Markhedkar was honored with the “World’s Best Performing Business Leaders Award 2023” in the mid-segment category by WCRCINT.
Financial Highlights
Here are the financial highlights of Vikran Engineering Limited for the fiscal years ending March 31, 2023, and March 31, 2024:
| Financial Metric | 2023 | 2024 | Growth (%) |
|---|---|---|---|
| Revenue from Operations | ₹524.31 Cr | ₹785.95 Cr | 49.87% |
| Profit After Tax (PAT) | ₹48.84 Cr | ₹74.83 Cr | 74.68% |
| Total Assets | ₹712.47 Cr | ₹959.79 Cr | 34.68% |
| Total Borrowings | ₹154.92 Cr | ₹183.39 Cr | 18.36% |
| Order Book | ₹517.34 Cr | ₹2,114.80 Cr | 308.83% |
Key Observations:
- Revenue Growth: The company’s revenue increased by approximately 49.87% from FY 2023 to FY 2024, indicating robust business expansion.
- Profitability: Profit After Tax saw a significant rise of 74.68%, reflecting improved operational efficiency and cost management.
- Asset Base: Total assets grew by 34.68%, suggesting substantial investment in business operations and infrastructure.
- Borrowings: Total borrowings increased by 18.36%, which may indicate funding for expansion projects or working capital requirements.
- Order Book: The order book experienced a remarkable growth of 308.83%, highlighting a strong pipeline of upcoming projects and business opportunities.
These financial metrics underscore Vikran Engineering Limited’s strong performance and growth trajectory in the EPC sector.
Key Performance Indicator (KPI)
| KPI | Values |
|---|---|
| ROE | 25.69% |
| ROCE | 30.37% |
| Debt/Equity | 0.63 |
| RoNW | 25.69% |
| PAT Margin | 9.46 |
Objects of the Issue (Vikran Engineering Limited IPO)
1) Funding Working Capital Requirements:
- A significant portion of the net proceeds from the fresh issue, amounting to approximately ₹625.5 crore, will be allocated to meet the company’s working capital needs for fiscal years 2025 and 2026. This funding aims to support the execution of ongoing projects and facilitate the acquisition of new contracts, ensuring smooth operational continuity.
2) General Corporate Purposes:
- The remaining proceeds will be utilized for general corporate activities, which may include strategic initiatives, capital expenditures, and other business development activities that contribute to the company’s growth and operational efficiency.
Strengths of Vikran Engineering Limited IPO
Robust Financial Performance
- VEL has demonstrated consistent revenue growth, with a Compound Annual Growth Rate (CAGR) of 33% over the past three fiscal years. In FY24, the company reported a revenue of ₹785.95 crore and a Profit After Tax (PAT) of ₹74.83 crore, reflecting a 74.68% increase from the previous year.
Diversified Order Book
- As of August 31, 2024, VEL had an order book of ₹3,957.06 crore, with 34 ongoing projects across 17 states. This diversification mitigates risks associated with regional or sectoral downturns.
Experienced Management Team
- The company is led by Mr. Rakesh Ashok Markhedkar, who brings over three decades of experience in the power transmission and distribution sector. He is supported by a team of qualified professionals, ensuring effective day-to-day operations.
Strong Clientele and Government Backing
- VEL has established relationships with major government and public sector clients, including NTPC Limited, Uttar Pradesh Water Supply and Sanitation Mission, and Andhra Pradesh Central Power Distribution Corporation Limited. These associations reduce counterparty credit risk.
Improved Capital Structure
- The company’s capital structure has improved, with a long-term debt to tangible net worth ratio of 0.07x in FY24, down from 0.35x in the previous year. This indicates a reduction in financial leverage and associated risks.
Risks of Vikran Engineering Limited IPO
Tender-Based Business Model
- VEL’s operations are primarily driven by tenders from government authorities, public sector undertakings, and private sectors. Delays or a lack of tenders, along with adverse changes in government policies, could materially impact the company’s revenue and profitability.
Working Capital Intensive Operations
- The company’s operations are working capital intensive, with a debtor collection period of 200 days in FY24. While this improved from the previous year, it still indicates potential liquidity challenges during project execution.
Dependence on Third-Party Logistics
- VEL relies on third-party logistics providers for transportation of products and machinery to project sites. Any delay or disruption in these services could adversely affect project timelines and financial performance.
Exposure to Raw Material Price Fluctuations
- The company is susceptible to fluctuations in the cost of raw materials. While price escalation clauses in contracts mitigate some risks, significant price increases could impact profitability.
Regulatory and Environmental Compliance Risks
- VEL’s infrastructure projects are subject to various regulatory and environmental compliances. Non-compliance or changes in regulations could lead to project delays or increased costs.
Vikran Engineering Limited IPO Contact Details
Corporate Office (Registered & Operational Headquarters)
- Address:
401, Odyssey IT Park, Road No. 9, Wagle Industrial Estate, Thane, Maharashtra – 400604, India - Phone:
022 6869 3200 - Email:
info@vikrangroup.com - Website:
www.vikrangroup.com
📧 Email Format for Employees
For direct communication with specific departments or personnel, Vikran Engineering Limited utilizes the standardized email format:
- Format:
[name]@vikrangroup.com
For example, the email address for Mr. Rakesh Markhedkar, Chairman & Managing Director, is:
📱 Social Media Presence
Stay updated with the latest news and developments by following Vikran Engineering Limited on their official social media platforms:
- Facebook:
Vikran Engineering & Exim Pvt. Ltd. - LinkedIn:
VIKRAN Engineering Ltd.
Vikran Engineering Limited IPO Registrar
The registrar for Vikran Engineering Limited’s IPO is Bigshare Services Private Limited. They are responsible for managing the allotment process, handling refunds, and maintaining investor records.
📌 Contact Details for Bigshare Services Pvt Ltd
- Website: https://ipo.bigshareonline.com/IPO_Status.html
- Phone: +91-22-6263 8200
- Email: ipo@bigshareonline.com
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