Vikran Engineering’s ₹1,000 Crore IPO: Backed by Ashish Kacholia and Mukul Agrawal, A Strong Bet on India’s Infrastructure Future

Vikran Engineering Ltd, based in Mumbai, has submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth ₹1,000 crore.

Vikran Engineering is an Engineering, Procurement & Construction (EPC) company that focuses on projects related to power, water, and railways. They provide a range of services from planning and design to supply, installation, testing, and commissioning, all on a turnkey basis. The company uses an asset-light approach, enabling it to take on more projects without needing to invest heavily in fixed assets.

Led by Chairman Rakesh Ashok Markhedar and Avinash Markedkar, who have over 30 years of experience in the EPC field, Vikran Engineering works with several notable organizations, including NTPC Ltd, Power Grid Corporation of India Ltd, and various state power and water distribution companies.

In fiscal year 2022, Vikran’s order book grew significantly from ₹517.34 crore to ₹2,114.80 crore. For fiscal 2024, the company’s revenue rose by 49.56% to ₹791.43 crore, up from ₹529.18 crore in the previous year. Additionally, profit after tax increased by 74.67%, reaching ₹74.83 crore compared to ₹42.84 crore in fiscal 2023.

IPO Details

The IPO consists of a fresh issue of shares worth ₹900 crore and an offer for sale (OFS) of up to ₹100 crore from promoter Rakesh Ashok Markhedkar. The funds raised from the fresh issue, amounting to ₹625.5 crore, will be used for the company’s working capital needs and general corporate expenses.

Pre-IPO investors include India Inflection Opportunity Fund (IIOF) (5.82%), Ashish Kacholia (2.14%), Mukul Agrawal (1.48%), and Negen AIF, along with other family offices and high-net-worth individuals. The book-running lead managers for the IPO are Systematix Corporate Services Ltd and Pantomath Capital Advisors Private Ltd.