Vikraman Engineering IPO: Unpacking Financial Health, Key Dates, Valuation & Grey Market Premium (GMP)
Welcome, everyone. This article will provide a detailed look into an upcoming mainboard IPO. We will cover its issue size, application dates, business overview, financial health, and risk-to-reward aspects. Stay tuned for daily IPO and Grey Market Premium (GMP) updates. For timely information, you can also join the Telegram group linked in the comments.
Vikraman Engineering IPO: Issue Details & Important Dates
The Vikraman Engineering IPO has an issue size of ₹800 crore. This IPO is a Book Built issue and will be listed on both BSE and NSE. The total issue consists of both a Fresh Issue and an Offer for Sale (OFS). The Fresh Issue component is valued at ₹772 crore, with ₹721 crore directly going to the company. An Offer For Sale (OFS) of ₹51 crore will see funds go to promoters and existing shareholders.
Key Application and Listing Dates
The IPO is scheduled to open for subscription on August 26th and will close on August 29th. This provides three days for application: August 26th, August 28th, and August 29th. The face value of each share is set at ₹1. The upper price band for the IPO is ₹97, and applicants should apply at this price for allocation. A minimum of 148 equity shares constitute one lot for application.
The allocation of the total issue size is as follows: 50% for Qualified Institutional Buyers (QIBs), including anchor investors (whose details will be available late on August 25th); 35% for Retail Individual Investors (RIIs), requiring a minimum application amount of ₹15,000; and 15% for High Net Worth Individuals (HNIs), comprising both Big HNI and Small HNI categories.
Important post-application dates include the allotment date on September 1st (Monday of the next week). Refunds for non-allotted applications are scheduled for September 2nd, the same day shares will be credited to successful applicants’ Demat accounts. The company’s listing on BSE and NSE is set for September 3rd.
Minimum Application Amounts:
To apply for one lot in the Retail category, an amount of ₹14,356 is required. For the Small HNI category, the requirement is ₹984, and for the Big HNI category, it is ₹14,920.
Deep Dive into Vikraman Engineering’s Financial Health
Assessing a company’s financial health is crucial. The company has provided financial data for FY23, FY24, and FY25.
Assets: In FY23, the company’s assets stood at ₹712.71 crore. This increased to ₹960 crore in FY24 and further to ₹1355 crore in FY25. This demonstrates consistent year-on-year growth in the company’s assets.
Revenue: Similarly, the company has shown consistent revenue growth. Revenue was ₹529 crore in FY23, rising to ₹791 crore in FY24, and further to ₹922 crore in FY25.
Profit After Tax (PAT): The profit after tax was ₹43 crore in FY23, growing significantly to ₹75 crore in FY24. In FY25, the profit reached ₹78 crore. While the growth from FY24 to FY25 was not as exponential as the previous year, the company continues to report healthy profits.
EBITDA: The company’s EBITDA was ₹79 in FY23, increasing to ₹133 in FY24, and reaching ₹160 in FY25.
Net Worth: Net worth saw substantial growth, from ₹131 crore in FY23 to ₹291 crore in FY24, and currently stands at ₹468 crore in FY25.
Reserves & Surplus: Reserves and surplus also show a positive trend, increasing from ₹130 crore in FY23 to ₹291 crore in FY24, and further to ₹450 crore in FY25.
Borrowings (Debt): The company’s total borrowings were ₹455 crore in FY23, which then decreased to ₹183 crore in FY24. However, in the current fiscal year (FY25), borrowings have increased to ₹273 crore. Despite this increase, the debt-to-equity ratio remains below 1, which is a positive indicator. Further reduction in this ratio would be beneficial for the company in the future. Overall, the company’s balance sheet appears strong.
Fundamental Metrics & Valuation Analysis
The company’s fundamentals appear robust:
- Return on Equity (ROE): 16%
- Return on Capital Employed (ROCE): 23%
- Debt-to-Equity Ratio: 0.58
- Return on Net Worth: 16.63%
- Profit After Tax Margin: 8.44%
- EBITDA Margin: 7.50%
- Price-to-Book Ratio: 3.81
Valuation Comparison: The Price-to-Earnings (P/E) ratio for Vikraman Engineering IPO, based on the cutoff price, is 23. To put this in perspective, let’s look at its peer competitors:
- Bajel Projects Ltd: P/E of 158
- Kalpataru Projects International Ltd: P/E of 35
- Techno Electric Engineering: P/E of 40
- SMPL Infra Projects: P/E of 37
- KEI International Ltd: P/E of 30
The average P/E of these peer competitors is 35. With Vikraman Engineering’s P/E at 23, the company’s valuation appears reasonable, leaving some scope for growth. This favorable valuation is contributing to the healthy Grey Market Premium (GMP) observed even before the IPO opens.
Vikraman Engineering IPO Grey Market Premium (GMP) & Listing Expectations
As of August 24th, the Grey Market Premium (GMP) for Vikraman Engineering IPO is ₹18. Given the upper price band of ₹97, the estimated listing price would be ₹97 + ₹18 = ₹115. This suggests a potential listing gain of approximately 19% (specifically, around 18.5%). Based on these figures, a single lot could yield a listing gain of approximately ₹2700.
However, it is crucial to consider the subscription levels on the first and second days, the momentum of the Grey Market Premium, and overall market conditions before making an application decision.
Conclusion
We hope this detailed analysis helps you understand the Vikraman Engineering IPO better. For any further doubts or queries, please feel free to ask in the comments section. Stay connected for ongoing updates on this IPO.
