K2 Infragen Limited (NSE SME)
Mar 28, 2024 - Apr 3, 2024
| Price | ₹111 - ₹119 |
| Premium | ₹63 |
|---|---|
| Lot size | 1200 |
| Allotment | Apr 4, 2024 |
| Listing | Apr 8, 2024 |
| Category | Lot(s) | Qty | Amount | Reserved |
|---|---|---|---|---|
| Retail | 1 | 1200 | 142800 | 921 |
| HNI | 2 | 2400 | 285600 | 395 |
Last updated on 03-Apr-2024 17:02:03
| Category | Offered | Applied | Times |
|---|---|---|---|
| QIB | 631200 | 14752800 | 23.37 |
| NIB | 474000 | 54160800 | 114.26 |
| RETAIL | 1105200 | 43006800 | 38.91 |
| Total | 2210400 | 111920400 | 50.63 |
| Retail Apps | 35839 | © IPO Premium | |
| HNI Interest Cost Per Share (7 Days) | |||||
|---|---|---|---|---|---|
| @7% ₹18.25 | @8% ₹20.86 | @9% ₹23.47 | @10% ₹26.08 | @11% ₹28.68 | @12% ₹31.29 |
Anchor Details
| Name of Anchor | No. of Shares | % Portion | Amount (cr) |
|---|---|---|---|
| NAV Capital VCC - NAV Capital Emerging Star Fund | 4,21,200 | 44.49% | 5.01 |
| VIKASA INDIA EIF I FUND - INCUBE GLOBAL OPPORTUNITIES | 1,68,000 | 17.74% | 2.00 |
| BENANI CAPITAL- BENANI CAPITAL SCHEME 1 | 1,65,600 | 17.49% | 1.97 |
| EMINENCE GLOBAL FUND PCC- EUBILIA CAPITAL PARTNERS FUND I | 1,06,800 | 11.28% | 1.27 |
| VPK GLOBAL VENTURES FUND - VPK GLOBAL VENTURES FUND - SCHEME 1 | 85,200 | 9.00% | 1.01 |
| Total | 9,46,800 | 100.00% | 11.27 |
IPO Reservation
| Investor Category | Shares Offered | No. of Shares |
|---|---|---|
| Retail | 32.44% | 1105200 |
| NII (HNI) | 13.91% | 474000 |
| QIB | 18.53% | 631200 |
| Anchor | 27.79% | 946800 |
| Market Maker | 7.33% | 249600 |
| Total | 100.00% | 3406800 |
K2 Infragen Limited, formerly known as K2 Powergen Private Limited, is an established engineering, procurement, and construction (EPC) company founded in 2015. With two distinct divisions, the company specializes in delivering comprehensive solutions across various sectors. In its EPC division, K2 Infragen offers end-to-end project management services encompassing planning, procurement, and construction execution for a diverse range of projects including water supply, railroad, road construction, and civil infrastructure. Additionally, the company's EPC services extend to project structuring, personnel planning, and logistics management, ensuring efficient and timely project completion. Complementing its EPC operations, the trading division focuses on procuring and trading non-ferrous metals through auction procedures, enhancing the company's versatility and market presence. With a dedicated team of 61 employees as of March 22, 2024, K2 Infragen Limited continues to uphold its commitment to excellence, innovation, and client satisfaction in the field of engineering and construction services.
K2 Infragen IPO Details
| Issue Size | 3,406,800 shares (aggregating up to ₹40.54 Cr) |
| Fresh Issue | 3,406,800 shares (aggregating up to ₹40.54 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 9,211,594 |
| Share holding post issue | 12,618,394 |
| Market Maker portion | 249,600 shares Rikhav Securities |
K2 Infragen IPO Anchor Investors Details
K2 Infragen IPO raises Rs 11.27 crore from anchor investors. K2 Infragen IPO Anchor bid date is March 27, 2024.
| Bid Date | March 27, 2024 |
| Shares Offered | 946,800 |
| Anchor Portion Size (In Cr.) | 11.27 |
| Anchor lock-in period end date for 50% shares (30 Days) | May 4, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | July 3, 2024 |
Key Performance Indicator
| KPI | Sep-23 | Mar-23 | Mar-22 |
|---|---|---|---|
| ROCE | 19.91% | 46.22% | -4.98% |
| RONW | 23.96% | 81.32% | -232.56% |
| D/E | 0.87 | 1.71 | 15.4 |
| EPS (basic & diluted) | 6.83 | 18.04 | -6.04 |
| P/BV | 4.32 | ||
| P/E (Pre IPO) | 9.68 |
Company Financials
K2 Infragen Limited Financial Information (Restated Consolidated)
K2 Infragen Limited's revenue increased by 103.25% and profit after tax (PAT) rose by 463.79% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period | 30 Sep 2023 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Assets | 6,378.79 | 5,690.40 | 2,591.14 | 2,220.52 |
| Revenue | 5,967.98 | 7,490.08 | 3,685.20 | 3,568.05 |
| Profit | 607.45 | 1,132.32 | -311.26 | 22.49 |
| Net Worth | 2,535.32 | 1,392.45 | 133.84 | 115.49 |
| Reserves | 1,611.24 | 1,165.10 | -96.26 | -46.56 |
| Amount in ₹ Lakhs | ||||
Strength Factors
Proven Management Team: The company benefits from a management team with an established track record, indicating their expertise, experience, and ability to effectively navigate challenges and capitalize on opportunities. This strength factor instills confidence in investors, stakeholders, and clients, reassuring them of the company's leadership capabilities and strategic direction.
Successful Completion of Projects: The company has a demonstrated history of successfully completed projects, showcasing its competence, reliability, and commitment to delivering high-quality results. This track record not only enhances the company's reputation but also attracts new clients and opportunities, leading to sustained business growth and profitability.
In-House Integrated Model: By employing an in-house integrated model, the company maintains greater control over project execution, resource allocation, and quality assurance. This integrated approach streamlines processes, minimizes dependencies on external entities, and fosters seamless collaboration across various project phases. Consequently, the company can optimize efficiency, mitigate risks, and deliver superior value to clients, enhancing its competitive advantage in the market.
Risk Factors
Revenue Concentration in Uttar Pradesh: The company's heavy reliance on revenue generated from Uttar Pradesh, constituting 97.81% of total revenue as of September 30, 2023, exposes it to significant regional risks. Any adverse developments, such as regulatory changes, economic downturns, or political instability in Uttar Pradesh, could severely impact the company's business operations, financial performance, and overall stability.
High Debt Equity Ratio and Borrowings: The company's high debt equity ratio and borrowings from commercial banks pose a substantial financial risk. A heavy debt burden increases financial leverage and interest obligations, potentially limiting the company's financial flexibility and ability to invest in growth initiatives. Moreover, failure to comply with repayment terms or other covenants in financing agreements could lead to default, creditor actions, and further financial distress.
Financial Reporting Discrepancies and Non-Compliances: The existence of discrepancies and non-compliances in the company's financial reporting, records, and statutory dues with taxation and other regulatory authorities indicates governance and compliance risks. Such issues may attract penalties, fines, legal proceedings, and reputational damage, adversely affecting the company's financial position, investor confidence, and long-term viability. Additionally, regulatory scrutiny and enforcement actions could disrupt business operations and hinder growth prospects.
K2 Infragen IPO Lead Manager(s)
- Expert Global Consultants Private Limited
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: k2infragen.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/