The Maharashtra based engineering and infrastructure solution provider Vikran Engineering Ltd.'s Rs 772-crore IPO comprises of a fresh issue of up to Rs 721 crore and an offer-for-sale of Rs 51 crore. The company has fixed the price band in the range of Rs 92 to Rs 97 per equity share. Investors can place bids starting from a minimum of 148 shares and in multiples thereafter.NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.Deven Choksey ReportVikran Engineering Ltd.'s initial public offering opened for subscription today and concludes on Aug. 29. The Maharashtra based engineering and infrastructure solutions company has fixed the price band in the range of Rs 92 to Rs 97 per equity share.Investors can place bids starting from a minimum of 148 shares and in multiples thereafter.The Rs 772-crore IPO comprises of a fresh issue of up to Rs 721 crore and an offer-for-sale of Rs 51 crore.The allotment for Vikran Engineering IPO is expected to be finalized on Sep. 01.The shares will be listed on both the National Stock Exchange and the BSE on Sep 03.Pantomath Capital Advisors Ltd., Systematix Corporate Services Ltd. are the book-running lead managers for the public issue while Bigshare Services Pvt. Ltd is the registrar to the offer.Objects of the offer Funding working capital requirements of the company.General corporate purposes.Risks:Bidding and Completion Risk Exposure The business is highly dependent on projects secured through competitive bidding and timely execution, where if it fails to qualify, win, or complete contracts may materially impact financial performance and growth prospects.Vigilance Action Two-Year Ban The Railway Board, based on CORE/Vigilance findings, passed an order dated July 26, 2024, banning the Company for two years for alleged integrity breach and illegal gratification. The Company has challenged this order before the Hon’ble Delhi High Court, which has stayed its operation on August 13, 2024; the matter remains sub judice with the next hearing scheduled on September 26, 2025. Business Dependence on Tenders and Asset Management The Company’s operations are working-capital intensive with receivables, inventories, and contract assets forming over 83% of total assets, making cash flows sensitive to project delays. Heavy reliance on government tenders further exposes the business to policy changes, payment risks, and contract uncertainties impacting financial performance.Overdue Receivables Impact on Cash Flows Delays in recoveries, ongoing disputes (including the ₹292.9 million RSDCL claim), and potential write-offs heighten working capital pressure, impacting cash flows, financial condition, and results of operations.Statutory Dues & Receivables Risk A significant portion of the Company’s receivables has remained overdue beyond the credit period, with certain amounts under dispute, posing risks to cash flow and recoverability. Further, past delays in payment of statutory dues, though subsequently cleared, highlight compliance risks that could invite regulatory action and adversely impact liquidity and financial condition.Outlook: Vikran Engineering, is an Indian EPC Company established in 2008, specializing in executing power transmission and distribution projects, along with expertise in water and railway infrastructure projects. Till date it has completed over 45 projects across 14 states with a total contract value of Rs 19,199 million. The Company strategically utilizes third-party equipment's to maintain its asset light business model and scale up its operations rapidly with change in project demand and requirements, without worrying for asset management and can focus on its core project activities. As of March 31, 2025, its overall order stood at Rs 20,443 ,million., providing strong revenue visibility for upcoming few years. Moreover, the Company aims to diversify its revenue base by expanding into railways, metros, solar, and water irrigation projects, to drive improvement in margins and overall profitability. Moreover, it plans to leverage its deep expertise and execution capabilities for executing industrial and renewable EPC projects to scale rapidly. Its revenue and Ebitda has grown at 32.2% and 41.8% CAGR over FY23-25, led by its strong operational excellence and efficient capital allocation structure, through which it has consistently delivered high-value projects for government entities, public sector undertakings, and private enterprises, meeting rigorous regulatory and quality benchmarks. Through its initial issue it plans to raise Rs 7.2 billion, for funding the working capital requirement of Rs 5.4 billion and residual amount for general corporate purposes. We believe with strong tailwinds in power transmission and distribution segment; the company is well positioned to capitalize on the future growth through its deep expertise in timely executing the projects by deploying its asset light model. Vikran’s initial issue is available at 17.3x TTM EV/Ebitda which is much lower to its peer average of 32.0x TTM EV/Ebitda. We believe the issue is attractively priced, as its growth in terms of revenue and Ebitda, has trended in a similar range of its peers, while it is available at a much lower valuation. We assign a “Subscribe” rating to the issue.Click on the attachment to read the full report:Gem Aromatics Share Price: Stock Makes Lacklustre Debut After IPO, Lists At 2.5% PremiumDISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. 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