K2 Infragen IPO booked 85% on day 1: Check subscription status, price, lot size and other key details

K2 Infragen Ltd IPO opened to a tepid demand from the investors on Thursday, March 28. The initial public offer of the engineering and construction firm was booked 76% on the first day of launch.

The public issue received bids for a total of 18.76 lakh shares compared to 22.1 lakh shares on offer, according to the NSE data.

K2 Infragen looks to raise around ₹40.54 crore through the maiden public offer on the NSE SME platform.

The qualified institutional buyers’ (QIBs) category was booked 86% with bids for 5.4 lakh shares compared to 6.31 lakh shares on offer for the segment. The non-institutional investors (NIIs) category was booked 74% as investors applied for 3.5 lakh shares against 4.74 lakh shares set aside for the segment. The retail investors submitted bids for 9.86 lakh shares against 11.05 lakh shares reserved for the segment, reflecting a booking of 89%.

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K2 Infragen IPO dates

K2 Infragen Ltd IPO opened for subscription on March 28 (Thursday) on NSE SME platform. Bidding will close on April 3.

The company is expected to finalise the IPO share allotment on April 4. Investors can check the share allotment status on the website of IPO registrar Kfin Technologies Ltd. K2 Infragen is expected to initiate refunds and Demat transfers on April 5.

Shares of K2 Infragen Ltd are expected to be listed on the NSE SME platform on April 8.

K2 Infragen IPO price, issue size, lot size and other details

K2 Infragen public issue comprises a fresh issue of 34 lakh equity shares of face value of ₹ 10 each. Of the total issue, 2.4 lakh equity shares have been reserved for market maker, Rikhav Securities.

The net issue size is 31.5 lakh equity shares of which around 15% has been reserved for non-institutional investors, not less than 35% for retail investors and the rest for qualified institutional buyers including anchor investors.

The IPO price band has been fixed at ₹111-119 per share. The minimum lot size is 1,200 shares for retail investors. The minimum amount of investment is ₹142,800 for retail investors. The minimum lot size for HNI is 2 lots (2,400 shares).

Expert Global Consultants Pvt Ltd is the book running lead manager of IPO. Kfin Technologies Ltd is the registrar for the K2 Infragen IPO issue.

K2 Infragen IPO purpose

K2 Infragen has proposed to utilise IPO proceeds to finance working capital requirements, capital expenditure and general corporate purposes.

The company finances its working capital requirements through bank finances and internal accruals. It has proposed to utilise ₹16 crore of IPO proceeds for meeting working capital needs.

To expand its manufacturing capabilities to support existing and new customers, the company looks to make capital expenditure towards installation of additional machinery. It has proposed to use ₹8.31 crore to purchase additional machinery.

About K2 Infragen

K2 Infragen is an integrated engineering, procurement and construction firm with a focus on Power Engineering and Project Engineering.

The company has various projects across eight states such as Uttar Pradesh, Rajasthan, Madhya Pradesh, Karnataka, Haryana, Gujarat, Punjab and Delhi.

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