Vikran Engineering shares make a muted debut; stock lists at 3% premium

Shares of Vikran Engineering made a muted Dalal Street debut on Wednesday, September 01 as the stock was listed a Rs 99.70 on BSE, a premium of 2.78 per cent over its issue price of Rs 97. Similarly, stock kicked-off its maiden trading session with a premium of 2.06 per cent over the given issue price at Rs 99 on NSE.

Listing of Vikran Engineering has been on the expected lines. Ahead of listing, shares of Vikran Engineering were commanding a grey market premium (GMP) of Rs 6.5 per share, suggesting a listing pop of 6-7 per cent for the investors. However, the GMP stood around Rs 20-21 when the IPO had opened for bidding.

The IPO of Vikran Engineering was open for bidding between August 26 and August 29. It had offered its shares in the price band of Rs 92-97 per share with a lot size of 148 shares. The company raised a total of Rs 772 crore from its IPO, which was a fresh share sale of Rs 721 and an offer-for-sale (OFS) of 52,57,731 equity shares.

The issue was overall subscribed 23.59 times, attracting bids worth nearly Rs 13,450 crore, with more than 19.62 lakh applications. The portion for qualified institutional bidders (QIBs) was booked 19.45 times, while the quota for non-institutional investors (NIIs) was subscribed 58.58 times. The allocation for retail investors was subscribed 10.97 times.

Incorporated in 2008, Thane-based Vikran Engineering is an engineering, procurement, and construction (EPC) company. Its projects include underground water distribution and surface water extraction, overhead tanks, and distribution networks. It is active in power transmission, water infrastructure, railway infrastructure and solar energy sector.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to it. Pantomath Capital Advisors and Systematix Corporate Services served as the book running lead managers for Vikran Engineering IPO and Bigshare Services was appointed as the registrar of the issue.