Mumbai-Based Vikran Engineering Files DRHP With SEBI To Raise ₹1,000 Crore In Upcoming IPO

Mumbai-based Vikran Engineering Limited (VEL), a company in the field of Engineering, Procurement, and Construction (EPC) sector has recently filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI), with a target to raise Rs 1,000 crore through its upcoming initial public offering (IPO).

Details of the IPO

The public issue of the company will consist of a fresh issue of shares worth up to Rs 900 crore. The offer for sale (OFS) will be amounting to Rs 100 crore, primarily from promoter Rakesh Ashok Markhedkar.

The fresh issue proceeds to the extent of Rs 625.5 crore will be used for Funding working capital requirements of the Company and general corporate purposes.

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.

Financial Highlights

In the fiscal year 2024, the company's revenue from operations surged by 49.56 per cent to Rs 791.43 crore in FY 2024, up from Rs 529.18 crore in FY 2023.

In addition, the profit after tax of the company increased by 74.67 per cent, soaring to Rs 74.83 crore from Rs 42.84 crore in the previous year.

Furthermore, the company reported a 236.94 per cent CAGR growth in profit after tax and a 130.02 per cent CAGR growth in EBITDA between FY 2022 and FY 2024.

Book-running lead managers

Pantomath Capital Advisors Private Limited and Systematix Corporate Services Limited will serve as the book-running lead managers for the public issue.

About the company

The company was founded by industry veterans Rakesh Ashok Markhedkar and Avinash Markhedkar, Vikran Engineering Limited and operates as a key player in the power, water, and railway infrastructure sectors.