Ashish Kacholia-backed Vikran Engineering files draft papers for Rs 1,000-crore IPO

Vikran Engineering IPO

Vikran Engineering targets to raise Rs 1,000 crore via initial public offering. It has filed preliminary papers with the capital markets regulator SEBI.

The IPO is a mix of fresh issuance of equity shares worth Rs 900 crore, and an offer-for-sale of shares worth Rs 100 crore by promoter Rakesh Ashok Markhedkar.

Promoters - Markhedkar family own 81.78 percent shareholding in the company, while the 18.22 percent stake is held by public shareholders including India Inflection Opportunity Fund (5.82 percent), Ashish Kacholia (2.14 percent), Everest Finance & Investment Company (2.14 percent), and Mukul Mahavir Agrawal (1.48 percent).

The Maharashtra-based company that offers EPC services to power, water and railway infrastructure segments intends to use fresh issue proceeds for working capital requirements (amounted to Rs 625.5 crore), and general corporate purposes.

Also read: Varindera Constructions plans to mobilise Rs 1,200 crore via IPO, files draft papers with SEBI

Vikran Engineering, which generates 98 percent business from energy and water infrastructure verticals, has completed 44 projects worth Rs 1,895.8 crore across 11 states in India, and has 34 ongoing projects worth Rs 3,957.1 crore across 17 states as of August 2024. NTPC, Power Grid Corporation of India, South Bihar Power Distribution Company, Transmission Corporation of Telangana, Madhya Pradesh Power Transmission Company, State Water and Sanitation Mission, and Assam Power Distribution Company are some its clients.

It has recorded healthy financial performance in the past years, with net profit growth at a 236.94 percent CAGR, and revenue at a 28.74 percent CAGR during FY22-FY24. EBITDA (earnings before interest, tax, depreciation and amortisation) increased at a CAGR of 130 percent in the same period.

Also read: Rahee Infratech files DRHP for Rs 420 crore IPO

The company competes with listed peers like Bajel Projects, Kalpataru Projects International, Techno Electric & Engineering Company, SPML Infra, and KEC International.

Pantomath Capital Advisors, and Systematix Corporate Services are the book running lead managers to the issue.