The proceeds from the fresh issue to the extent of Rs 625.5 crore will be used for Funding working capital requirements of the Company; and general corporate purposes
FinTech BizNews Service
Mumbai, 1 October , 2024: Mumbai-based Vikran Engineering Limited an Engineering, Procurement & Construction (EPC) company engaged in power, water & railway infrastructure, has filed has filed its draft red herring prospectus (DRHP) with the market regulator, Securities and Exchange Board of India (SEBI), to raise Rs 1,000 crore through an initial public offering (IPO).
The IPO is a mix of fresh issue of shares up to Rs 900 crore and an offer for sale (OFS) of up to Rs 100 crore by Promoter Selling Shareholders Rakesh Ashok Markhedkar.
The proceeds from the fresh issue to the extent of Rs 625.5 crore will be used for Funding working capital requirements of the Company; and general corporate purposes.
Vikran Engineering Limited is one of the fast-growing Indian Engineering, Procurement & Construction (EPC) company and provides end-to-end services from conceptualisation, design, supply, installation, testing, and commissioning on a turnkey basis. It follows an asset light model by executing more orders with lower investment in fixed asset.
The Company has presence across multiple sectors including power, water, and railway infrastructure and is led by its CMD, Mr Rakesh Ashok Markhedar and Avinash Markedkar both having over 3 decades of experience in the EPC sector.
In the power sector it has completed projects under various schemes upto 400kV for power transmission, upto 765 kV for Extra High Voltage Substations, including constructing a 132 KV transmission line. It also has experience in Solar EPC of ground mounted solar projects and smart metering In the water sector the companies projects include underground water distribution besides surface water extraction, overhead tanks and distribution networks
As of August 31, 2024, it had executed work across 22 states & successfully completed 44 projects across 11 states with 34 ongoing projects across 17 states.
Some of its clients include NTPC Limited, Power Grid Corporation of India Limited, South Bihar Power Distribution Co. Ltd., North Bihar Power Distribution Co. Ltd., Transmission Corporation of Telangana Limited, Madhya Pradesh Power Transmission Company Limited, Madhya Pradesh Madhya Kshetra Vidyut Vitran Company Limited, District Water and Sanitation Mission (PHED) and State Water and Sanitation Mission (SWSM).
The company’s order book grew from ₹ 517.34 crore in FY22 to ₹ 2114.80 crore in FY24. As per the CRISIL report mentioned in the DRHP, VEL is the fastest growth in profitability with a 236.94% CAGR growth in PAT and 130.02% CAGR growth in EBITDA between fiscal 2022 to 2024.
Vikran Engineering’s revenue from operations increased by 49.56 % to Rs 791.43 crore for Fiscal 2024 from Rs 529.18 crore for Fiscal 2023. Profit after tax increased by 74.67% to Rs 74.83 crore for Fiscal 2024 from Rs 42.84 crore for Fiscal 2023.
The Company is backed by pre-IPO investors such as India Inflection Opportunity Fund, Ashish Kacholia, Mukul Agarwal, Negen AIF besides other family offices and HNI Investors.
Pantomath Capital Advisors Private Limited and Systematix Corporate Services Limited are the book-running lead managers.
