K2 Infragen makes strong debut, shares list at 40% premium to IPO price

K2 Infragen Ltd, an integrated engineering, procurement and construction firm, made a strong debut on stock exchanges on Monday as its shares listed at a premium of 40% on the NSE SME platform.

K2 Infragen shares opened for trading at ₹167 per share against the issue price of ₹119 per share, showing a bumper premium of 40% over the issue price.

The market valuation of the company stood at around ₹210 crore at the listing price against ₹150 crore at the issue price.

According to exchange data, around 12.67 lakh shares changed hands in early deals.

K2 Infragen shares declined by 5% to hit the lower limit of ₹158.65 on NSE later as investors resorted to profit-taking after a bumper listing.

K2 Infragen is an engineering, procurement and construction firm focusing on power engineering and project engineering. The company serves as a contract EPC player, has various projects across eight states such as Uttar Pradesh, Rajasthan, Madhya Pradesh, Karnataka, Haryana, Gujarat, Punjab and Delhi.

What will the company do with IPO proceeds?

K2 Infragen looks to utilise IPO proceeds to meet working capital needs, financing capital expenditure and fund other general corporate purposes.

The company launched an initial public offering on March 28 to raise around ₹40.5 crore from public shareholders. The issue comprised a fresh issue of 34,06,800 equity shares of face value of ₹10 each. The IPO closed on April 3.

The K2 Infragen IPO received a strong response from investors with a total subscription level of 51.47 times. Applications for 11.37 crore shares worth ₹1,353.80 crore were received against 22.10 lakh shares on offer.

The qualified institutional buyers’ category was subscribed 23.37 times. Non-institutional investors’ portion was booked a huge 113 times. The retail investors’ category was booked over 40 times.

K2 Infragen had reserved around 15% of the net issue for non-institutional investors, not less than 35% for retail investors and the rest for qualified institutional buyers including anchor investors. The net issue size was 31,57,200 equity shares. aAs many as 2,49,600 equity shares were set aside for market maker, Rikhav Securities.

The IPO, a book-built issue, was priced at ₹111-119 per share. The minimum lot size was 1,200 shares for retail investors. The minimum investment was ₹142,800 for retail investors.

K2 Infragen looks to utilise IPO proceeds to meet working capital needs, financing capital expenditure and fund other general corporate purposes.

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