K2 Infragen Limited IPO

Apply 0
Avoid 0

Foundation and Growth: 

K2 Powergen Private Limited was established on March 5, 2015, rebranded as K2 Infragen Private Limited in 2017, and evolved into K2 Infragen Limited in 2023 as a public entity.

EPC Services: 

Specializes in engineering, procurement, and construction (EPC) with a focus on power and project engineering, offering services from design to post-construction activities across multiple states in India.

Accreditation and Eligibility: 

The company has secured contractor accreditation with prestigious agencies like the Public Works Department in Rajasthan and Madhya Pradesh, enabling it to participate in and undertake a wide range of government-awarded projects.

Service and Business Divisions: 

The company’s operations are divided into two main categories: (1) the EPC segment, which includes contract and service businesses, and (2)a Trading Business. The contract business covers comprehensive project management from design to commissioning, while the service business focuses on the structuring and timely execution of diverse construction projects.

Operational Excellence: 

Has the in-house expertise to manage projects from conceptualization to commissioning, emphasising risk mitigation and value creation through professional management.

Objects of the K2 Infragen Limited IPO:

We intend to utilize the Net Proceeds of the Issue to meet the following objects: 1.  Working capital requirement; 2. Capital Expenditure; and 3. General corporate purposes;

K2 Infragen Limited IPO Details:

Open Date: Mar 28 2024
Close Date: Apr 03 2024
Total Shares: 34,06,800
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue
Issue Size: 40.54 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 111 to ₹119 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 08 2024

Promoters And Management:

Mr. Pankaj Sharma aged 45 years is Promoter and Managing Director of the Company. He was appointed as an Executive Director of the Company since February 14, 2018, subsequently his designation was changed to Managing Director for period of 5 years with effect from September 01, 2023. He holds a Bachelor of Engineering degree in Electronics Engineering from Nagpur University and has Post Graduate Diploma in Business Management in Marketing Management from School of Management Sciences, Varanasi. He has over 20+ years of experience in the Power Construction and Infrastructure industry. Ms. Priya Sharma, aged 41 years, is Promoter and Executive Director of the Company. She was appointed as a Non-Executive Director of the Company since October 27, 2016, subsequently her designation was changed to Executive Director since September 29, 2017. She holds a bachelor’s degree of Science and Master of Business Administration from Indira Gandhi National Open University, New Delhi and Uttar Pradesh Technical University respectively. She was a sales executive in the head of education department in Hindustan Times. 3. Mr. Neeraj Kumar Bansal, aged 53 years, is an Executive Director of the Company. He was appointed as the professional Chief Executive Officer of the Company since February 1, 2022 and subsequently his designation was changed to Executive Director since September 30, 2022. He holds a bachelor’s degree of technology in Mechanical Engineering from Indian Institute of Technology Kanpur. He is having 28+ years of experience in the power construction and infrastructure industry.

Financials of K2 Infragen Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 3,547 3,657 7,479 5,939
Other Income 21 28 11 29
Total Revenue 3,568 3,685 7,490 5,968
Cost of construction 1,048 892 3,249 4,260
Purchase of Stock in Trade 2,065 2,438 1,095 0
Change in Inventories -50 -17 107 0
Employees Benefit Expenses 168 179 293 196
Other Expenses 75 142 819 471
EBITDA 262 51 1,927 1,040
Depreciation & Amortisation 99 161 180 94
Finance Cost 113 193 222 118
EBIT 164 -109 1,746 946
OPM (%) 7.36% 1.39% 25.72% 17.43%
PBT 50 -306 1533 824
Tax 28 6 400 216
PAT 22 -311 1132 607
NPM (%) 0.63% -8.45% 15.12% 10.18%
No.of Shares 126.18 126.18 126.18 126.18
EPS 0.17 -2.46 8.97 4.81

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
K2 Infragen Limited 75 11 8.97 13.3 119 150
Markolines Pavement Technologies Ltd 312 16 8.24 16.3 136 259
W S Industries (India) Ltd 80 20 4.70 24.3 144 677
Udayshivakumar Infra Ltd 287 16 2.90 13.0 49.2 272
Advait Infratech Ltd 102 10 9.80 N/A 1,340 1,367
* All the data is as per FY23.

Recommendation on K2 Infragen Limited IPO:

Review and Recommendation of K2 Infragen by team IZ is 4/10. 1. K2 Infragen Limited, originally founded as K2 Powergen Private Limited in 2015, has navigated through a series of strategic transformations, including a name change to K2 Infragen Private Limited in 2017, and a conversion to a public limited company in 2023. 2. Operational Competencies: K2 Infragen boasts an extensive portfolio of services, including design, procurement, construction supervision, and post-construction activities, making it a full-spectrum EPC provider. The company's eligibility to undertake projects across various departments highlights its recognized expertise and capacity to deliver complex infrastructure projects. 3. Business Divisions: K2 Infragen operates under two primary business categories: i. Engineering, Procurement, and Construction (EPC): * Contract Business: Offers comprehensive project execution from design and engineering to commissioning, leveraging in-house capabilities to reduce third-party dependencies. * Service Business: Focuses on specialized services within the EPC framework, enhancing project delivery and quality. ii. Trading Business: Engages in the trading of essential materials and services related to infrastructure development, supporting the company's core EPC operations. 4. Sectoral Expertise: K2 Infragen's project portfolio spans multiple infrastructure sectors, including water supply projects, railway and road construction, and civil construction works. This diversification allows the company to offer turnkey solutions across critical infrastructure domains, from water management systems to comprehensive civil engineering projects. 5. Technology Integration and Project Management: K2 Infragen's adoption of SAP ERP systems streamlines project management, procurement, and operational workflows, enhancing efficiency and transparency. This technological foundation, coupled with a detailed project analysis and planning approach, ensures adherence to quality and timely delivery standards. 6. Market Position and Competitive Landscape: Operating in a highly competitive market, K2 Infragen distinguishes itself through quality service delivery at competitive prices. The company's management team, boasting over 100 years of collective experience, positions K2 Infragen advantageously against both regional and national players, addressing industry challenges with innovation and quality assurance. 7. The Revenue has Increased from Rs.35 Crore in FY21 to Rs.74 Crore in FY23. 8. The EBITDA has Increased from 2 Crore in FY21 to 19 Crore in FY23. 9. The PAT has Increased from 22 Lakhs in FY21 to 11 Crore in FY23. 10. As per FY23, CFO/EBITDA is 1.11, As per FY24, EPS is 9.62, 11. Market Capitalization is 150 Crore & P/E is 12.35x based on FY24.

Lead Manager of K2 Infragen Limited IPO:

  1. Expert Global Consultants Private Limited

Registrar of K2 Infragen Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

K2 Infragen Limited 801 A, B & 802 A, B, C, 8th Floor, Welldone Techpark, Sohna Road, Gurugram – 122 018 Phone: +91 124 4896700 Email: cs@k2infra.com Website: http://www.k2infra.com/

Discussion on K2 Infragen Limited IPO:

Leave a Reply