Vikran Engineering IPO subscribed over 5x, closes today; here's what Anil Singhvi thinks

Vikran Engineering IPO: The three-day subscription window for Vikran Engineering’s Rs 772 crore initial public offering (IPO) closes today. The issue has seen a decent response from investors so far, with total bids exceeding 5.24 times the shares on offer by the end of Day 2.

Data from the National Stock Exchange (NSE) shows that the IPO received bids for over 30.76 crore shares against 5.87 crore shares available. The highest demand has come from non-institutional investors (NIIs), whose portion was subscribed 11.03 times, followed by retail investors, who bid for 5.23 times their quota. The qualified institutional buyers (QIB) category was subscribed 91 per cent as of Thursday.

The IPO includes a fresh issue of 74.3 million equity shares and an offer for sale (OFS) of 5.3 million shares by promoter Rakesh Ashok Markhedkar. The price band is set at Rs 92–97 per share, with a lot size of 148 shares. At the upper end, a minimum application costs Rs 14,356, while the maximum allowed for retail investors is 13 lots or Rs 1.86 lakh.

Market expert Anil Singhvi has advised only high risk-taking investors to consider applying, with a long-term view. He spotted positives such as experienced promoters, an asset-light model, a profitable track record, and strong pre-IPO backers. However, he also flagged concerns including high receivables, working capital pressure, and negative cash flows.

Final subscription figures will be announced after market hours today, with allotment likely early next week. The listing is expected in early September, depending on market conditions.