Vikran Engineering shares to list tomorrow, GMP signals muted market debut

Vikran Engineering

The shares of Vikran Engineering are set to debut on stock markets tomorrow, September 3. Grey market estimates signal towards a muted listing for the Mumbai-based company.

Ahead of listing, the unlisted shares of the company were trading with a little over 4 percent grey market premium (GMP) over the IPO price at Rs 101.1 apiece, according to data on Investorgain. This is significantly lower than the 13 percent GMP quoted by the site when the IPO opened for public bidding.

According to IPO Watch, the unlisted shares of the company were trading with over 5 percent GMP in the grey market.

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.

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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