Anlon and Vikran listing tepid

Two listings today and both were kind of lacklustre and tepid, reflecting the overall moods of the market.

Anlon Health today got listed – and it was very muted as expected – as against the IPO price of Rs.92, it got listed at Rs.91.10 and remains range bound in the same levels.

The issue had met with a tepid response – with retail portion seeing the max at 47.29x, HNIs at 10.61x and QIBs at 1.07x, with overall subscription at 7.12x.

Anlon Health is a Rajkot, Gujarat based manufacturer of active pharmaceutical ingredients (API) and finished dosage formulation for loxoprofen sodium dihydrate used in pain and inflammation management. Company has 400 MTPA installed capacity, and from the IPO proceeds, it plans to add 700 MTPA capacity, which will increase installed capacity to 1,100 MTPA, by Mar 2027.

Our IPO Analysis conclusion for this - Anlon Health’s healthy margins are overshadowed by poor working capital. With capacity increase take some time, stock can be tracked post listing. For now, we do not recommend the IPO.

The other IPO that got listed was Vikran Engineering. As against the IPO price of Rs.97, it got listed on the BSE at Rs.99.70 and rose to an intraday high at Rs.101.73 and is now trading at Rs.100 levels.

The IPO did well with an overall subscription of 23.59x with HNIs portion highest at 58.58x, QIBs at 19.45x and retail at 10.97x.  

Vikran Engineering is an engineering, procurement and construction (EPC) company, undertaking power transmission and distribution (T&D) and water infrastructure projects, split 70:30 of Rs. 900 cr topline. Outstanding Order Book rose to Rs. 2,442 cr, as of 30.6.25, up 19% QoQ, leading to a book-to-bill ratio of 2.7x.

Our conclusion in the IPO Analysis - Vikran Engineering’s poor working capital management and declining RoE are unattractive. But high single digit net margin and attractive valuation vis-à-vis peers makes it a subscribe, but only for the short term.