What you Must know about K2 Infragen IPO?

About K2 Infragen IPO

K2 Infragen Limited established in 2015, previously operated under the name K2 Powergen Private Limited. Specializing in engineering, procurement and construction services, the company includes two primary divisions. Firstly, the Engineering, Procurement and Construction or EPC division oversee contract projects, managing planning, construction and procurement aspects across various sectors including railroad, road construction, water supply and civil engineering.

Within the EPC division services extend to project structuring, personnel planning, scheduling and logistics to ensure efficient project execution. This includes a spectrum of construction services ranging from engineering and procurement to the construction of diverse projects under build to order or build operate leasing models including structures like buildings, transmission lines, boundary walls and water projects. These services also entail comprehensive planning, surveying, project management, and quality supervision.

Secondly, the company's Trading division engages in the procurement and trading of materials, particularly non ferrous metals leveraging open market channels and auction procedures. As of March 22, 2024, K2 Infragen Limited has a workforce totaling 61 employees demonstrating its commitment to operational excellence and service delivery across its diverse portfolio.

Key Highlights of the K2 Infragen IPO

Here are some of the highlights of the K2 Infragen IPO:
 

• K2 Infragen IPO will be open from 28 Mar 2024 to 3 Apr 2024. K2 Infragen IPO has a face value of ₹10 per equity share and the price band for the K2 Infragen IPO has been fixed between ₹111- ₹119 per share.
• The IPO of K2 Infragen comprises solely a fresh issue component, with no portion allocated for offer for sale (OFS).
• As part of the fresh issue portion of the IPO, K2 Infragen IPO will issue a total of 34.07 lakh shares, at the upper price band of the IPO of ₹119 per share to raise fresh funds of ₹40.54 crores.
• Since K2 Infragen IPO does not include an offer for sale (OFS) component, the total IPO size is equivalent to the fresh issue size of the IPO, which amounts to ₹40.54 crore.
• Ms. Priya Sharma, Mr. Pankaj Sharma, Mr. Rajesh Tiwari, Mr. Rajiv Khandelwal and Mr. Sarvajeet Singh are the promoters of the company. Before the listing, promoter holding in the company stood at 53.29%, post listing on 8 April 2024, promoter holding will be diluted to 40.36%.
• The raised funds will be used for working capital requirements, Capital Expenditure and General corporate purposes.
• Expert Global Consultants Private Limited serves as the book running lead manager for the K2 Infragen IPO, while Kfin Technologies Limited has been appointed as the registrar for the issue. Rikhav Securities will be the market maker for the K2 Infragen IPO.

K2 Infragen IPO Allocation

During the K2 Infragen IPO, the net offer proceeds will be allocated among various categories of investors, including Qualified Institutional Buyers, retail investors, and Non Institutional Investors or High Net Worth Individuals (HNIs). The allocation breakdown for the IPO of K2 Infragen is as follows

Lot sizes for investing in the K2 Infragen IPO

The minimum lot size for K2 Infragen IPO investment is 1200 shares, equivalent to ₹142,800 (1200 shares x ₹119 per share), which is also the maximum lot for retail investors to apply. For K2 Infragen IPO HNI/NII investors can invest in a minimum of 2 lots, totaling 2,400 shares with a minimum value of ₹2,85,600. Check the breakdown of lot sizes and amounts for retail and HNI investors.

Key Dates for K2 Infragen IPO?

K2 Infragen IPO will open for subscription on Thursday, 28 March 2024 and close on Wednesday, 3 April 2024. The bidding period for the K2 Infragen IPO will be from 28 Mar 2024, starting at 10:00 AM, until 3 April 2024, closing at 5:00 PM. For K2 Infragen IPO cut off time for UPI Mandate confirmation is 5:00 PM on the closing day of the IPO, which falls on wednesday 3 Apr 2024.

Financial Highlights of K2 Infragen IPO

key financial figures of K2 Infragen IPO for the last three completed financial years

Profits for K2 Infragen IPO have been on a rollercoaster ride over the past three years. In FY21, they stood at ₹22.49 Lakhs showing a decent start. However, things took a downturn in FY22 with profits dropping to -₹311.26 Lakhs indicating losses. But the recent financial year FY23 saw a remarkable turnaround with profits skyrocketing to ₹1132.32 Lakhs. This surge represents a huge leap from FY21, indicating a strong comeback and improvement in the company's financial health.

K2 Infragen IPO Vs Peer Comparison

When compared with its peers, K2 Infragen appears to be in a stronger position due to its superior performance in terms of Earnings Per Share (EPS). K2 Infragen boasts the highest EPS among its peers, standing at 18.04. In contrast, Advait Infratech Ltd follows K2 Infragen with an EPS of 15.59. This indicates that K2 Infragen is outperforming its competitors in generating earnings relative to its outstanding shares.