Mukul Agrawal, Ashish Kacholia-backed Vikran Engineering shares rise 5% from IPO price. Time to cash out or double down?

Shares of Vikran Engineering climbed on their first day of trading Wednesday, rising about 5% from the IPO price in a Rs 772-crore offering backed by marquee investors Mukul Agrawal and Ashish Kacholia, although the gains fell short of grey-market expectations.

The stock listed at Rs 99.70 on the BSE, 2.8% above its IPO price of Rs 97, and at Rs 99 on the NSE, a 2% premium. Momentum held throughout the session, with shares advancing to an intraday high of Rs 101.73 on the BSE and Rs 101.77 on the NSE, up 4.9% from opening levels.

The performance fell short of the last grey market premium (GMP) of Rs 7, which had implied an expected upside of 7.2%.

Investor interest vs market reality

While the IPO drew heavy investor demand, subscribed nearly 25 times across qualified institutional buyers, non-institutional investors, and retail bidders, post-listing trading did not fully reflect this enthusiasm. GMP signals had already suggested a modest gain of 4–7%, which slipped steadily through the subscription period.

Priced at Rs 97 per share, the issue comprised a Rs 721-crore fresh issue and a Rs 51-crore offer for sale, valuing the company at about Rs 2,500 crore post-listing.

Analyst views

Shivani Nyati, Head of Wealth at Swastika Investmart, described the debut as “modest,” with listing gains of just 2.7% above the issue price. She noted that Vikran Engineering operates as “a leading EPC player in power transmission, water infrastructure, and railway electrification projects, with an asset-light model and a strong execution track record.”The company has “robust growth visibility backed by a Rs 2,442 crore order book, supported by government infrastructure spending,” Nyati said, recommending investors hold with a stop-loss near Rs 89 “to safeguard against volatility, as execution of the strong order pipeline could drive medium-term upside.”

Backed by marquee investors

Founded in 2008 and headquartered in Thane, Vikran Engineering counts marquee backers including Ashish Kacholia, Mukul Agrawal, and The Wealth Company (via India Inflection Opportunity Fund).

The company specializes in turnkey EPC projects in power transmission, water supply, and railway electrification, with completed projects across 14 states and ongoing work worth Rs 5,120 crore as of June 2025.

Financials and valuation

Revenue grew at a 32% CAGR between FY23 and FY25, reaching Rs 916 crore, while net profit climbed to Rs 78 crore from Rs 43 crore. The company follows an asset-light model by leasing equipment, aiding margins and returns.

Brokerage houses had mixed pre-listing views. SBI Securities pegged the issue at a FY25 P/E of 32.1x, noting Vikran’s “highest profitability margins” among peers like Kalpataru Projects International and KEC International but maintained a “Neutral” stance.

Anand Rathi called the IPO “fully priced” but rated it “Subscribe for Long Term” based on scalability and sector tailwinds. Reliance Securities cited strong credentials and government-aligned growth, recommending “Subscribe.”

Also read | Ashish Kacholia-invested Vikran Engineering shares list at 3% premium over IPO price(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)