The shares of Vikran Engineering made a muted stock market debut on September 3, listing at Rs 99 apiece on NSE. This marks a premium of a little over 2 percent over the IPO price of Rs 97 apiece.
After debut, the stock declined nearly 4 percent to close at Rs 95.20 apiece.
On BSE, the shares listed with nearly 3 percent premium over the IPO price at Rs 99.70 apiece.
The listing premium is lower than grey market estimates. Ahead of listing, the unlisted shares of the company were trading with more than 7 percent grey market premium (GMP) over the IPO price at Rs 104 apiece, according to data on Investorgain.
The Rs 772-crore maiden public issue of the company saw strong investor interest during its three days of public bidding, being subscribed more than 24 times between August 26 and August 29. The company had set a price band of Rs 92-97 per share for the IPO.
The Mumbai-based company intends to utilise proceeds from the fresh issue to the tune of Rs 541 crore for funding working capital requirements and the rest for general corporate purposes. It provides end-to-end services from conceptualisation, design, supply, installation, testing, and commissioning on a turnkey basis.
Should you buy, sell or hold?
Vikran Engineering is well-positioned in the Indian infrastructure and renewable energy sectors, which are growing quickly due to significant government support, said Akhilesh Desai, Research Analyst at Ajcon Global Services.
"Short-term investors might consider booking profits if the premium exceeds 15-20%. Long-term investors should regularly monitor earnings and invest only if they are confident in the company's future growth," he said.
"With a consistent track record of executing large-scale projects along with asset-light model for marquee government and public sector clients and PAN India presence, Vikran Engineering Limited is well-positioned to capitalize on opportunities in the high-growth infrastructure sector. Considering its scalability, financial strength, and sectoral tailwinds, investors may continue to hold the issue for long term post listing," said Narendra Solanki, Head Fundamental Research- Investment Services, Anand Rathi Shares and Stock Brokers.
Not just short-term listing gains but long-term partnership between engineering growth and real estate expansion are expected from Vikran Engineering's robust order book and investor interest, said Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara.
"With proceeds earmarked for working capital and corporate purposes, the company is well-placed to strengthen its role in India’s infrastructure ecosystem. For the real estate sector, such engineering players are critical enablers—supporting construction, project delivery, and urban development," the analyst added.
Medium to long-term investors may stand to gain as engineering and construction players continue to play a crucial role in determining the future of India's economy, Maurya said.
"At current pricing, the offering may be best suited for investors with a medium- to long-term horizon who can absorb cyclical volatility in exchange for potential structural rewards," said Harshal Dasani Business Head, INVasset PMS. "At a post-issue valuation of over Rs 2,500 crore and a P/E of ~32x FY25 earnings, the IPO appears fully priced, leaving little buffer for execution slippages or cost overruns," he added.
Swastika Investsmart meanwhile had said investors may consider the IPO for listing gains and long-term horizon.
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