K2 Infragen makes bumper debut, shares lists at 40% premium

Tanushree Jaiswal Tanushree Jaiswal 8th April 2024 - 02:45 pm
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On April 8, K2 Infragen Limited made impressive debut on NSE SME platform, with its shares listing at ₹ 167, reflecting substantial premium of ₹ 48, or 40 percent, over issue price of ₹ 119. While listing gains were commendable, they slightly trailed grey market premium, where shares were trading at premium of ₹ 63. This marked significant milestone for company, which witnessed overwhelming investor interest during its initial public offering (IPO) phase.

K2 Infragen IPO garnered considerable attention from investors, with oversubscription of more than 46.35x. public offer received massive response, attracting 11,40,14,400 share applications against offered 24,60,000 shares. Established in 2015, K2 Infragen operates as engineering, procurement, & construction (EPC) firm, with two primary divisions - EPC & Trading. EPC segment undertakes contract-based projects across various sectors such as water supply, railroads, roads, & civil construction, while trading business focuses on procuring & trading non-ferrous metals through auction procedures in open market.

Company intends to utilize proceeds from IPO to meet working capital requirements, capital expenditure, & for general corporate purposes. IPO, which was entirely fresh equity issue of 34.06 lakh shares, aimed to raise approximately ₹ 40.54 cr. Expert Global Consultants Private Limited acted as book running lead manager for IPO, with Kfin Technologies Limited serving as registrar.
K2 Infragen's strong financial performance & robust growth prospects further fueled investor interest. Between March 31, 2022, & March 31, 2023, company witnessed remarkable increase in profit after tax (PAT) by 463.79% & revenue by 103.25%. This impressive track record, coupled with its strategic focus on power engineering & project engineering, positioned K2 Infragen as attractive investment opportunity.

Successful listing of K2 Infragen highlights growing appetite for SME stocks among investors & underscores company's potential for expansion & value creation in market. As stock debuted at premium on NSE SME platform, it signals positive momentum & investor confidence in K2 Infragen's growth trajectory. With its strong fundamentals & promising outlook, K2 Infragen is poised to emerge as key player in engineering & construction sector, delivering value to shareholders & stakeholders alike.

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