Vectras Enprocon Ltd. IPO: Price Band, Issue Size, Financials and Risks

Vectras Enprocon Ltd. is launching a ₹53.05 crore small and medium enterprise, or SME, initial public offering, or IPO, at a price band of ₹99 to ₹105 per share. The issue opens on October 30, 2026, closes on November 3, 2026, and is scheduled to list on November 6, 2026. It comprises a ₹42.59 crore fresh issue and a ₹10.46 crore offer for sale, or OFS. Fresh-issue proceeds will go to the company, while OFS proceeds will go to the selling shareholders.

What Vectras Enprocon does

Vectras Enprocon is a Gujarat-based engineering, procurement and construction, or EPC, provider serving India’s midstream and downstream oil and gas sector. Its activities include designing, procuring, constructing, testing and commissioning combined oil and gas stations, cross-country pipelines and distribution pipelines.

The company also undertakes related civil, electrical, instrumentation, cathodic-protection, inspection and safety-auditing work. These assignments form part of its offering across oil and gas infrastructure projects, including station-related and pipeline construction work.

Vectras Enprocon has recently entered the external midstream and downstream pipeline segment. Its business remains weighted towards combined-station work and Gujarat-based projects. The company is also principally exposed to private-sector customers, which is relevant to its order flow, project execution and collection cycle.

The EPC model requires coordination across procurement, construction, testing and commissioning. Execution outcomes can therefore be influenced by material availability, specialised equipment lead times, subcontractor performance, site coordination and customer approvals. The company’s work also carries safety, regulatory and environmental considerations associated with oil and gas infrastructure.

Milestones and order-book position

In 2024, Vectras Enprocon received startup recognition from the Department for Promotion of Industry and Internal Trade in the construction and construction-engineering sectors. The company reported operational turnover of ₹54.31 crore in that year, followed by ₹80.48 crore in fiscal 2025 and ₹119.80 crore in fiscal 2026.

Vectras Enprocon converted from Vectras Enprocon Private Limited to Vectras Enprocon Limited in 2025. The conversion preceded the proposed public issue.

As of September 30, 2026, the company reported an unexecuted order book of ₹183.28 crore across 34 projects. The order book covers combined station, pipeline and allied works. It provides visibility on work that remains to be executed, but its conversion into revenue and cash collections will depend on project progress, customer requirements, billing and payment timelines.

Customer concentration is a material feature of the business. The top 10 customers contributed 97.29% of recent revenue, and the company does not have long-term contracts with these customers. Changes in orders, execution schedules or payments from major customers could affect revenue and cash flow.

Financial trajectory and cash-flow context

Reported total revenue increased from ₹54.32 crore in FY2024 to ₹80.48 crore in FY2025 and ₹119.80 crore in FY2026. Profit after tax, or PAT, rose from ₹5.81 crore in FY2024 to ₹10.17 crore in FY2025 and ₹15.43 crore in FY2026. Total assets increased from ₹21.47 crore in FY2024 to ₹46.50 crore in FY2025 and ₹74.94 crore in FY2026.

PAT margin was 10.70% in FY2024, 12.64% in FY2025 and 12.88% in FY2026. The company reported negative operating cash flows in each of FY2024, FY2025 and FY2026 despite reporting profits in those periods.

Cash-flow movement is pertinent for an EPC company because projects can require expenditure on materials and execution before customer payments are received. Vectras Enprocon identifies delayed customer payments, financing availability and higher interest costs as factors that could affect margins, operations and cash generation. Its working-capital requirement will remain relevant alongside reported revenue and profit growth.

IPO structure and proposed use of proceeds

The IPO has a price band of ₹99 to ₹105 per share and a lot size of 1,200 shares. At the upper end of the price band, the minimum application amount is ₹1.26 lakh. Allotment is scheduled for November 4, 2026, and refunds are scheduled for November 5, 2026.

The ₹53.05 crore issue combines a ₹42.59 crore fresh issue with a ₹10.46 crore OFS. The fresh issue raises capital for the company. The OFS represents shares sold by selling shareholders, who will receive those proceeds.

The company proposes to use net proceeds from the fresh issue for repayment or prepayment of certain outstanding borrowings, long-term working-capital requirements and general corporate purposes. The stated allocations include ₹14.00 crore towards repayment or prepayment of borrowings, ₹20.00 crore towards long-term working capital and ₹1.00 crore towards general corporate purposes. These are proposed uses and not completed spending.

The issue reservation includes 50% for qualified institutional buyers, or QIBs, 15% for non-institutional investors, or NIIs, and 35% for retail investors. Up to 60% of the QIB portion is allocated to anchor investors, with a 33.33% domestic mutual fund reservation within the anchor allocation. Subscription has not opened as of October 29, 2026.

Valuation and operating indicators

At the upper price band, the reported pre-IPO price-to-earnings, or P/E, ratio is 10.20 times, based on earnings per share, or EPS, of ₹10.29. The reported price-to-book ratio is 3.36 times.

Return on equity, or ROE, is reported at 21.52%, while return on capital employed, or ROCE, is 19.69%. Return on net worth, or RoNW, is also reported at 21.52%. The company reports an earnings before interest, tax, depreciation and amortisation, or EBITDA, margin of 20.21%, a PAT margin of 12.65% and a debt-to-equity ratio of 0.67 times.

These metrics should be read alongside the reported financial trajectory, negative operating cash flows over the three financial years, working-capital needs and customer concentration. In project-led EPC work, the timing of procurement, execution, billing and collection can influence the relationship between reported profit and operating cash flow.

Risks and monitoring points

The company faces project-execution risks, including procurement delays, material-price volatility, equipment lead times, subcontractor performance, coordination failures and quality-control issues. Regulatory, environmental, safety, geopolitical and natural-disaster disruptions may also affect oil and gas infrastructure work.

The concentration of revenue among a limited set of customers is significant. The absence of long-term contracts means that lower orders, project delays or payment delays from major customers could affect business activity and cash flow. The company also remains concentrated in Gujarat and combined-station work, while its entry into the external pipeline segment is recent.

Investors can monitor order-book conversion across the 34 reported projects and changes in the mix of combined-station and pipeline assignments.

Investors can monitor operating cash flow, receivable collections and long-term working-capital requirements following the fresh issue.

Investors can monitor customer concentration, the geographic spread of projects and the proportion of work from private-sector customers.

Investors can monitor borrowing levels, interest costs and progress on the proposed repayment or prepayment of borrowings.

Complete numeric snapshot

IPO terms and schedule

Key performance indicators and valuation

Category reservations and anchor allocation

Proposed use of fresh issue proceeds

Subscription status (29 Oct 2026)

The issue has not opened for subscription yet. Category-wise bidding data will update once the issue opens on 30 Oct 2026.