Vikran Engineering's ₹772 crore IPO has been subscribed 5.24 times and will close on August 29. The Grey Market Premium (GMP) indicates listing gains of up to 12%. Experts recommend subscribing to it for long-term investment due to its b order book and sector opportunities.
Vikran Engineering IPO GMP: Vikran Engineering's ₹772 crore IPO opened on August 26 and will close on August 29. According to NSE, the issue received bids 5.24 times by the second day, with the highest participation from Non-Institutional Investors. In the grey market, shares are trading at ₹109, above the issue price of ₹97. Experts have deemed it attractive for long-term investment, considering its order book exceeding ₹2,000 crore and the sector's growth prospects.
IPO Receives Strong Response
According to data available on the National Stock Exchange, the IPO has received an overwhelming response. By August 28, the second day, the IPO was subscribed 5.24 times. The company offered 5,87,39,128 shares, against which bids were received for 30,76,74,240 shares.
Non-Institutional Investors showed the most interest in this IPO. This category has received a subscription of 11.03 times so far. Retail investors also participated enthusiastically, with their portion subscribed 5.23 times. As for Qualified Institutional Buyers, only 91 percent of bids have been received.
Indications from Grey Market Premium
Vikran Engineering's shares are also active in the grey market. unofficially, the share was trading at ₹109 on Friday. This is approximately ₹12 higher than the upper end of the IPO price band of ₹97, indicating a premium of 12.37 percent. If this trend persists on the listing day, investors could potentially gain around ₹1776 per lot.
Investment Terms and Amount
To invest in the IPO, investors must apply for at least one lot, which consists of 148 shares. At the upper price band, one lot will cost ₹14,356. A retail investor can apply for a maximum of 13 lots, totaling 1,924 shares, for a total amount of ₹1,86,628.
Allotment and Listing Schedule
The company has stated that share allotment may take place on September 1. Vikran Engineering's shares are scheduled to be listed on both BSE and NSE exchanges on September 3. Bigshare Services is the registrar for this issue. The lead managers for the IPO are Pantomath Capital Advisors and Systematics Corporate Services.
Company's Business and Order Book Status
Vikran Engineering is a company operating in the infrastructure sector. The company currently has a b order book exceeding ₹2,000 crore. This figure is approximately double its estimated revenue for FY2025. The company works on water recycling and power-related projects. With the government's increasing focus on these areas, Vikran Engineering is expected to greatly benefit from future tenders.
