K2 Infragen
Book Building issueSME₹40.54 Cr issue
+40.34%
Listing gain over issue price
Issue size
₹40.54 Cr
1 lot at cut-off
₹1,42,800
Lot size
1,200shares
Open
28 Mar 2024
Close
03 Apr 2024
Allotment
04 Apr 2024
Listing
08 Apr 2024
Listing performance
Issue price
₹119
Listed at
₹167
Listing-day close
₹173.25
Latest price
₹37.85
Close on 23 Oct 2026
Listing gain
+40.34%
Return since issue
-68.19%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 Mar 2024 – 03 Apr 2024
- Listing date
- 08 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹119 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Total issue size
- ₹40.54 Cr
- Market cap at offer price
- ₹150 Cr
- Promoter holding
- 55.29% → 40.36% pre-issue → post-issue
- ISIN
- INE0DEZ01013
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Expert Global Consultants Pvt.Ltd.
- Registered office
- 801 A, B & 802 A, B, C, 8th Floor, Welldone Techpark, Sohna Road, Sohna, Haryana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 9,46,800 | — | — |
| Market maker | 2,49,600 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹119
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,42,800 |
| S-HNI (min) | 2 | 2,400 | ₹2,85,600 |
| S-HNI (max) | 7 | 8,400 | ₹9,99,600 |
| B-HNI (min) | 8 | 9,600 | ₹11,42,400 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
9,46,800
Anchor portion
₹11.27 Cr
at ₹119 per share
Valuation and performance
Valuation at offer price
₹119 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 12.29 | 9.63 |
| P/E (×) | 9.68 | 12.36 |
| Price to book (×) | 4.32 | — |
| Market cap | — | ₹150 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 23.90%
- ROCE
- 19.91%
- Debt / equity
- 0.87
- PAT margin
- 10.23%
- NAV per share
- ₹27.53
- Price to book
- 4.32
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About K2 Infragen
K2 Infragen Limited, originally incorporated as K2 Powergen Private Limited in March 2015, was renamed K2 Infragen Private Limited in 2017 and converted to a public company in 2023. The company operates in the infrastructure sector with three main business divisions: Engineering, Procurement and Construction (EPC) through both contract and service businesses, and Trading. The company generates revenue primarily from executing turnkey water supply projects and civil construction work. As of June 30, 2023, the company had revenues of ₹2,192.72 lakhs, with 94% derived from projects in Uttar Pradesh. The company employs an in-house integrated model combining qualified design and engineering teams with manufacturing capabilities for bitumen processing at its Kota, Rajasthan facility.
Company Analysis
from DRHPK2 Infragen Limited is an infrastructure engineering, procurement, and construction (EPC) company specializing in turnkey water supply projects, civil construction, and related infrastructure services across India.
K2 Infragen Limited, originally incorporated as K2 Powergen Private Limited in March 2015, was renamed K2 Infragen Private Limited in 2017 and converted to a public company in 2023. The company operates in the infrastructure sector with three main business divisions: Engineering, Procurement and Construction (EPC) through both contract and service businesses, and Trading. The company generates revenue primarily from executing turnkey water supply projects and civil construction work. As of June 30, 2023, the company had revenues of ₹2,192.72 lakhs, with 94% derived from projects in Uttar Pradesh. The company employs an in-house integrated model combining qualified design and engineering teams with manufacturing capabilities for bitumen processing at its Kota, Rajasthan facility.
Infrastructure - Water SupplyCivil ConstructionEngineering, Procurement and Construction (EPC)Road InfrastructureRailway ProjectsTelecom Infrastructure
Objects of the Issue
- Working capital requirement ₹1,600.00 lakhs p.24
- Acquisition of Plant and Machinery ₹831.00 lakhs p.24
- General corporate purposes p.24
- Working capital requirement ₹1,600.00 Lakhs p.85
- Capital Expenditure for installation of additional machinery ₹831.00 Lakhs p.85
- General corporate purposes p.85
- The document states 'Pending utilization of the Issue Proceeds for the Objects of the Issue described above' but does not specify the detailed objects of issue in this excerpt (pages 95-102). p.95
- Not specified in this part of the document
- General corporate purposes p.336
Issue Structure
- Total Issue
- Up to ₹[●] lakhs (35,00,000 equity shares at ₹[●] per share)
- Fresh Issue
- Up to 35,00,000 equity shares aggregating up to ₹[●] lakhs
- Offer for Sale
- NA - No offer for sale
- Price Band
- Floor Price ₹[●] and Cap Price ₹[●] (Cap Price at least 105% of Floor Price)
- Lot Size
- [●] equity shares and in multiples of [●] equity shares thereafter
- Face Value
- ₹10/- per equity share
Business Model
The company earns revenue through three channels: (1) Engineering, Procurement and Construction (EPC) services on a fixed-sum turnkey basis and project basis for infrastructure projects, primarily water supply systems; (2) Service business for construction-related services; (3) Trading business in non-ferrous metals (now shifted to associate company K2 Recyclers Private Limited). Revenue recognition follows project completion milestones and contract terms with clients including government agencies and private entities.
Business Segments
Civil construction services for infrastructure projects
Engineering, Procurement and Construction of complete water supply systems on turnkey basis
Infrastructure services for railway construction
Road infrastructure construction and rehabilitation services
Provides engineering, procurement and construction services for road infrastructure projects including design, mobilization, equipment deployment and project execution
Survey, design, construction, commissioning, operation, maintenance, and management of water supply projects including supply, laying and testing of pipelines; construction of water tanks, reservoirs, overhead tanks, raw water reservoirs, water treatment plants, pumping stations, providing functional household tap connection and related electro mechanical and instrumentation works.
Laying of railway tracks, construction of boundary walls, rail-over-bridges, station buildings, staff quarters, signal and telecommunication building.
Construction and/or strengthening of roads and highways on EPC mode, including minor bridges, major bridges, road-over-bridges, road-under-bridges, culverts.
Construction of road infrastructure projects including various activities, such as construction, widening, strengthening, improvement, lane-related construction, maintenance, as well as development activities.
Specializes in procurement of materials such as non-ferrous waste from the open market and through auction processes, selecting and segregating materials based on customer specifications, serving as intermediary in supply chain through mark-up model.
Power construction, highway and bridge projects, railway projects, tunneling, irrigation projects
Auxiliary infrastructure services and scrap sales
Revenue from engineering, procurement & construction including revenue from sale of services and contract revenue
Revenue from sale of products
Cloud services revenue
Construction and design work undertaken on a contract basis, including design, procurement, construction supervision, and project management services.
Revenue from sale of engineering and construction services.
Sale of products.
The company provides engineering, procurement and construction services for infrastructure projects, primarily roads and bridges undertaken by government authorities and entities funded by governments.
The company derives revenue from the sale of products related to its construction activities.
SWOT Analysis
Strengths
- • Experienced promoter and senior management team with significant industry expertise(p.44)
- • Substantial brand recognition and market position through long operating history(p.46)
- • Ability to expand manufacturing capabilities with modern machinery acquisition(p.91)
- • Experienced promoters with deep domain expertise in infrastructure(p.126)
- • Established track record executing 38 projects worth ₹10,444.68 Lakhs(p.119)
- • In-house integrated model reducing third-party dependence(p.127)
- • Strong order book of ₹34,133.14 lakhs as of October 31, 2023(p.119)
- • Diversified EPC capabilities across water, railway, road and civil projects(p.117)
- • ISO certifications for quality, environment and occupational health & safety(p.117)
- • Clean regulatory compliance history with no stock exchange delisting or refused listing(p.150)
- • Experienced management with 20+ years in infrastructure and power construction(p.154)
- • Strong promoter backing with 55.28% of pre-issue capital held by promoters(p.169)
- • Professional executive with 28+ years infrastructure and power construction experience leading as Chief Executive(p.154)
- • Revenue growth trajectory with Rs. 7,479.08 lakhs in FY 2022-23 versus Rs. 3,656.91 lakhs in FY 2021-22(p.195)
- • Integrated EPC capabilities with in-house design and construction expertise(p.310)
- • Multi-state operational presence across 8 Indian states(p.310)
- • ISO certifications demonstrating quality and safety standards(p.310)
- • Government contractor accreditation for Class AA works(p.310)
- • Established operational presence in road and infrastructure projects(p.313)
- • Diversified fixed-price and lump-sum contract portfolio with cost escalation provisions(p.313)
Weaknesses
- • Lack of challan record for forms filed with RoC(p.30)
- • Discrepancies in historical allotments and MCA filings(p.30)
- • Business concentrated in Uttar Pradesh(p.30)
- • High customer concentration(p.31)
- • High supplier concentration(p.31)
- • Pending litigation with Public Works Department Rajasthan(p.32)
- • High unsecured borrowings(p.32)
- • Negative operating cash flows in past periods(p.37)
- • High dependence on contract labour availability at reasonable costs(p.44)
- • Heavy debt burden with promoter guarantees on borrowings(p.45)
- • No dividend payments in three preceding fiscal years despite profitability(p.45)
- • Rented registered and corporate office with shared premises(p.41)
- • Historical delays in statutory compliance filings(p.44)
- • Promoter concentration with controlling shareholding post-IPO(p.48)
- • Outstanding tax proceedings against promoters(p.46)
- • High customer concentration with top customer representing 83.23% of revenue(p.125)
- • Significant debt-to-equity ratio of 1.71 as of Fiscal 2023(p.125)
- • High working capital requirements with 21.93 days working capital in Fiscal 2023(p.125)
- • Small company size with revenue of ₹6,655.14 lakhs in Fiscal 2023(p.125)
- • Ongoing litigation with Rajasthan High Court regarding PWD recovery order(p.149)
- • High debt burden with current borrowings of Rs. 1,782.43 lakhs and non-current borrowings of Rs. 300.38 lakhs(p.194)
- • History of losses with loss of Rs. 311.26 lakhs in FY 2021-22(p.195)
- • Significant provision for expected credit loss at Rs. 298.03 lakhs as at 30 June 2023(p.205)
- • Concentration of shareholding among promoters with founder-related family members controlling 46.11% of pre-issue capital(p.157)
- • Recently constituted independent board with all independent directors appointed in October-November 2023(p.152)
- • High reliance on few customers for major revenue(p.238)
- • Significant accumulated impairment and credit losses on trade receivables(p.223)
- • High debt-to-equity ratio and significant borrowing burden(p.224)
- • Pending litigation with government authority creating contingent liability(p.219)
- • Non-compliance with statutory dues payment obligations(p.211)
- • Related-party loan dependence and regulatory compliance issues(p.211)
- • High debt levels relative to equity with debt-to-equity ratio of 1.42(p.311)
- • Significant reliance on contract revenue with execution-dependent performance(p.311)
- • High expected credit loss provisions on trade receivables(p.274)
- • Volatility in profitability with prior year losses(p.265)
- • Heavy dependence on skilled manpower availability and retention(p.313)
- • Exposure to fixed-price contract risks with cost overrun recovery challenges(p.313)
- • Contingent litigation liability with PWD Rajasthan(p.321)
- • High leverage with total borrowings of ₹2,082.81 lakhs and significant interest expense(p.325)
- • Risk of project delays leading to liquidated damages and contract termination(p.313)
Opportunities
- • Expansion of manufacturing capacity for road and construction projects(p.91)
- • Growth in Indian economic activity and infrastructure development(p.45)
- • Opportunity to attract and retain specialized technical and management talent(p.47)
- • Enhancement of brand recognition through listing on stock exchange(p.88)
- • Working capital expansion to support larger project execution(p.89)
- • Infrastructure development as core growth driver with capital outlay increased 33% to ₹10 lakh crore(p.113)
- • Expansion of National Infrastructure Pipeline with 9,142 projects and $1.9 trillion investment(p.116)
- • Geographic expansion into new states to diversify revenue base(p.127)
- • Strong government focus on water supply and sanitation infrastructure(p.118)
- • Government initiatives like Smart Cities Mission allocating ₹8,000 crore(p.115)
- • Infrastructure development sector expansion through construction contracts and auxiliary services(p.182)
- • Potential for dividend distribution once profitability stabilizes(p.177)
- • Capacity to raise additional debt up to Rs. 200 crores authorized by shareholders(p.156)
- • Growth through scrap sales and non-ferrous metal operations with existing expertise in the sector(p.170)
- • Revenue growth in construction and engineering services segment(p.214)
- • Expansion of service-based revenue streams(p.214)
- • Growing government investment in road and highway infrastructure(p.311)
- • Expansion into higher-value projects through enhanced capabilities(p.312)
- • Order book expansion potential across multiple states(p.311)
- • Growth in government-funded road and infrastructure development projects(p.323)
- • Expansion into new geographic markets and project types(p.313)
Threats
- • Project implementation and cost/time overrun risks(p.31)
- • Rising construction material, fuel, and labour costs(p.37)
- • Dependence on competitive bidding for project awards(p.33)
- • Order Book may not materialize into revenue(p.34)
- • Receivables collection delays from government clients(p.36)
- • Environmental and regulatory compliance costs(p.41)
- • Intense competition from larger infrastructure companies(p.39)
- • Operational risks including accidents, equipment failure, and labour disruptions(p.43)
- • Seasonal fluctuations and adverse weather conditions impact operations(p.43)
- • Interest rate volatility affecting debt servicing costs(p.43)
- • Quality control failures could damage reputation and result in liability(p.43)
- • Intense competitive pressure from larger, better-resourced companies(p.46)
- • Macroeconomic downturns and currency/interest rate fluctuations(p.45)
- • Customer receivables collection risk and default(p.47)
- • Restrictive covenants in financing agreements limiting operational flexibility(p.48)
- • Regulatory changes and new compliance requirements(p.50)
- • Risk of terrorist attacks, civil unrest, and geopolitical events(p.52)
- • Pandemic and epidemic outbreak impacts on operations(p.51)
- • Market volatility and share price decline risk post-listing(p.49)
- • Dependence on government and large infrastructure companies as primary clients(p.131)
- • Severe weather conditions affecting project execution and timelines(p.131)
- • High competitive intensity with large numbers of regional and national players(p.132)
- • Exposure to project execution risks and liquidated damages for delays(p.130)
- • Regulatory and compliance requirements across multiple states(p.137)
- • No guarantee on future dividend payments despite profitability(p.177)
- • Restrictive covenants in loan agreements may limit operational flexibility(p.177)
- • Working capital pressure with substantial trade payables of Rs. 596.28 lakhs as at 30 June 2023(p.194)
- • Dependence on related party transactions including loans to associate companies(p.203)
- • Cyclicality and volatility in construction industry and product sales(p.214)
- • Rising interest rate exposure on variable-rate borrowings(p.223)
- • Customer credit risk and delays in receivables collection(p.212)
- • Working capital pressure from inventory and trade payables management(p.212)
- • Dependence on government policies and budgetary allocations for infrastructure spending(p.311)
- • Macroeconomic sensitivity affecting infrastructure demand and project funding(p.311)
- • Project execution delays beyond company control affecting revenue realization(p.311)
- • Customer payment delays impacting working capital and cash flows(p.311)
- • Competitive bidding pressure requiring consistent pre-qualification credentials(p.311)
- • Severe weather conditions and seasonal disruptions to project execution(p.313)
- • Intense competition from larger competitors with greater resources and experience(p.313)
- • Price competition eroding project margins(p.313)
- • Material cost inflation impact on project profitability(p.313)
- • Dependence on limited number of government entities for revenue generation(p.323)
- • Risk of adverse government policy changes affecting project awards(p.323)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Pankaj Sharma | Promoter | 21.05% | — |
| Ms. Priya Sharma | Promoter | 9.88% | — |
| Mr. Rajesh Tiwari | Promoter | 7.44% | — |
| Mr. Rajiv Khandelwal | Promoter | 10.93% | — |
| Mr. Sarvajeet Singh | Promoter | 5.99% | — |
| Mr. Pankaj Sharma | Promoter | 21.05% | — |
| Ms. Priya Sharma | Promoter | 9.88% | — |
| Mr. Rajesh Tiwari | Promoter | 7.44% | — |
| Mr. Rajiv Khandelwal | Promoter | 10.93% | — |
| Mr. Sarvajeet Singh | Promoter | 5.99% | — |
| Pankaj Sharma | Promoter | — | — |
| Priya Sharma | Promoter | — | — |
| Rajesh Tiwari | Promoter | — | — |
| Rajiv Khandelwal | Promoter | — | — |
| Sarvajeet Singh | Promoter | — | — |
| Mr. Pankaj Sharma | Promoter/Managing Director | 21.05% | — |
| Ms. Priya Sharma | Promoter/Executive Director | 9.88% | — |
| Mr. Rajesh Tiwari | Promoter/Non-Executive Director | 7.44% | — |
| Mr. Rajiv Khandelwal | Promoter | — | — |
| Mr. Sarvajeet Singh | Promoter | — | — |
| Pankaj Sharma | Promoter | 22.15% | — |
| Rajiv Khandelwal | Promoter | 11.50% | — |
| Priya Sharma | Promoter | 10.40% | — |
| Neeraj Kumar Bansal | Promoter | 8.15% | — |
| Rajesh Tiwari | Promoter | 7.83% | — |
| Pankaj Sharma | Promoter | — | — |
| Rajesh Tiwari | Director & Promoter | — | — |
| Neeraj Kumar Bansal | Director | — | — |
| Rajiv Khandelwal | Promoter | — | — |
Leadership
Mr. Pankaj Sharma · Managing Director
Ms. Priya Sharma · Executive Director
Mr. Rajesh Tiwari · Non-Executive Director
Ms. Jyoti Lakra · Company Secretary and Compliance Officer
Ms. Priyanka Pareek · Chief Financial Officer
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.
K2 Infragen IPO FAQs
What is the lot size of K2 Infragen IPO?
The minimum lot size of K2 Infragen IPO is 1,200 shares. One lot costs ₹1,42,800 at the cut-off price.
When does K2 Infragen IPO open and close?
K2 Infragen IPO opened for subscription on 28 Mar 2024 and closed on 03 Apr 2024.
What is the listing date of K2 Infragen IPO?
K2 Infragen IPO listed on 08 Apr 2024.