if you have been eyeing the infrastructure sector for your next investment, the Shreeji Vikran Engineering Ltd IPO might just be the opportunity you were waiting for. With a strong foothold in the engineering and construction space, this company is stepping into the spotlight with a solid track record and ambitious growth plans. Let’s break down what makes this IPO interesting in simple, straightforward terms.

What Does Shreeji Vikran Engineering Do?

Shreeji Vikran Engineering Ltd operates in the vital infrastructure space, mainly focusing on Engineering, Procurement, and Construction (EPC) projects. Think of them as the go-to company that does everything from planning to building big government projects—like power transmission lines, water pipelines, railway electrification, and solar energy plants. Their business model is smart and cost-effective—they lease equipment rather than buy it, which means lower fixed costs and more financial flexibility.

Industry Snapshot: How Does This Company Fit In?

The infrastructure and engineering sector is buzzing, with lots of government projects aimed at improving India’s power and water networks. On average, companies in this sector trade at a Price-to-Earnings (PE) ratio of about 30 to 35. This means investors are willing to pay 30 to 35 times the company’s earnings to own a share, reflecting the sector’s growth expectations.

Meet the Promoters

Behind Vikran Engineering are promoters with deep roots in the EPC arena — Rakesh Ashok Markhedkar, Avinash Markhedkar, and Nakul Markhedkar. These gentlemen are steering the company with years of experience, managing to build a strong pipeline of projects and a reliable reputation.

Who Are Their Clients?

One of the biggest strengths is their client base. Working mostly on government contracts gives them stability that many private companies envy. Their top clients include big names like NTPC (India’s largest power company), Power Grid Corporation, and various State-Level Power Utilities across the country. This has ensured a steady flow of orders and revenues, which is crucial in the infrastructure space.

Financial Health: Growing and Getting Stronger

The numbers tell a healthy story. For the fiscal year that ended in March 2025:

• Revenue jumped to ₹915.85 crore from ₹785.95 crore the previous year, showing a solid 16.5% growth.

• Profit after tax (PAT) grew slightly to ₹77.82 crore.

• They efficiently manage their assets and debts, borrowing to fund expansion but keeping it under control.

The company boasts a decent return on equity (ROE) of 16.63%, indicating good utilization of investors’ money.

How Does Vikran Stack Up Against Peers?

Compared to other players in the industry, Vikran looks like a value pick:

Vikran’s share price relative to earnings is lower than the sector average — indicating potential upside — while its profit margins are healthier than many peers.

What About Listing Gains?

The grey market premium (GMP) for this IPO is around ₹18-20 per share over the issue price, indicating strong market interest. This suggests that the shares could list at about ₹115 on the stock exchange, which translates to approximately an 18-20% gain on listing day (tentatively 3rd September 2025). These signs point to potential quick listing gains for investors applying at IPO price.

AG Analyst Advice: Apply for This IPO for Listing Gains

Based on the company’s solid financials, experienced promoters, strong government clientele, and healthy grey market signals, the advice is to apply for this IPO to benefit from potential listing gains. The company’s attractive valuation compared to peers and steady growth trajectory make it an appealing investment opportunity for both new and seasoned investors.

Disclaimer

Investment in the securities market is subject to market risks. Investors should carefully read the prospectus and consult financial advisors before making any investment decisions. Past performance is not indicative of future results.