Vikran Engineering shares surge 14% after winning order worth nearly the same as its market cap

Shares of newly listed Vikran Engineering Ltd. surged as much as 14% on Wednesday, December 23, in response to a large order win that it announced after market hours on Tuesday.

The company had announced to the exchanges that it has received a major work order worth ₹2,035.26 crore from Onix Renewables Limited for the development of a 600 MW AC solar power project.

Size of the order won by Vikran Engineering is nearly the same as its overall market capitalisation, which currently stands at ₹2,500 crore.

The contract involves turnkey EPC works, including design, engineering, procurement, supply, erection, testing and commissioning of the solar plants across multiple locations in Maharashtra. The order also includes the supply of solar PV modules and inverters.

According to the company’s regulatory filing, the project is to be executed within a period of 12 months. The order value stands at ₹2,035.26 crore excluding GST, and approximately ₹2,216.4 crore including applicable taxes.

Vikran Engineering clarified that the contract does not fall under related-party transactions, and neither the promoter nor promoter group has any interest in the awarding entity.

Ahead of the announcement, shares of Vikran Engineering closed at ₹86.65 on the NSE, down 3.42%.