K2 Infragen Ltd

About the Company:

K2 Infragen Ltd is an integrated engineering, procurement and construction (“EPC”) with a focus on Power Engineering and Project Engineering having experience in design and construction of various projects.

Company has various projects across 8 States in India viz. Uttar Pradesh, Rajasthan, Madhya Pradesh, Karnataka, Haryana, Gujarat, Punjab & Delhi.

Company provide services across the value chain, ranging from design, procurement, construction supervision, subcontract management and work order management to post-construction activities.

Company has been accredited with various registrations as a contractor with various departments and agencies viz. Public Works Department, Rajasthan (Class AA), Public Works Department, Madhya Pradesh, Bhopal (Class AA), pursuant to which we are also eligible to participate and undertake projects awarded by various other departments and agencies.

Since incorporation Company has gradually increased the capabilities in terms of the size of projects.

Company’s equipment base comprised over 13 construction & mining machinery and 25 vehicles.

Company’s business is broadly divided into below mentioned categories:

Engineering, Procurement and Construction (EPC)

a. Contract Business
b. Service Business

Trading Business.

Engineering, Procurement and Construction (EPC):

a. Contract Business:

The scope of our services includes detailed design & engineering of the project, procurement of key materials, and project execution at the sites with overall project management up to the commissioning of the projects.

Company has design and engineering, procurement, project management and quality management teams along with with fleet of 13 construction equipment and 25 vehicles.

Company’s in-house teams deliver our projects from design to completion. This reduces dependency on third parties for key materials such as stone aggregates, bitumen and services such as design and engineering, transportation and logistics required in the development and construction of our projects.

K2 Infra, an engineering, procurement and construction (“EPC”) organization located in Gurugram, Haryana, provides a comprehensive solution for major infra-development channels which includes:

Water Supply Projects:

Survey, design, construction, commissioning, operation, maintenance, and management of water supply projects (WSPs) including supply, laying and testing of pipelines; construction of water tanks, reservoirs, overhead tanks etc

Railway Projects:

Laying of railway tracks, construction of boundary walls, rail-over-bridges, station buildings, staff quarters, signal and telecommunication building.

Road Projects:

Construction and/or strengthening of roads and highways on EPC mode, including minor bridges, major bridges, road-over-bridges, road-under-bridges, culverts.

Civil Construction Work:

Construction of road infrastructure projects including various activities, such as construction, widening, strengthening, improvement, lane-related construction, maintenance, as well as development activities.

Company’s Category Wise revenue: (in Lakhs)

Company’s Orderbook:

Since incorporation till October 31, 2023, company has successfully executed 38 projects worth Rs.104.44 crores.

Company’s execution capabilities have grown with time, both in terms of the size of projects that we bid for and execute and the number of projects that we execute simultaneously.

As of October 31, 2023, company has 15 ongoing projects aggregating to approx Rs.341.33 crores.

Company has Executed Projects for the following Clients:

Larsen & Toubro.
Essel Group.
Vindhya Telelinks Ltd
GR Infraprojects Ltd
H.G Infra Engineering Ltd
KEC International
Dilip Buildcon Ltd
Isgec Heavy Engineering Ltd
Public Works Department (Rajasthan)
Adani Green Energy Ltd
CDS Infra Projects Ltd

Details of on-going projects by the Company as on February 29, 2024:

Management Team:

Mr. Pankaj Sharma (Designation: Managing Director)
Ms. Priya Sharma (Designation: Executive Director)

Objectives of the Issue:

Fresh Issue: (Rs.40.54 cr)

Working capital requirement.
Capital Expenditure.
General corporate purposes.

Positives for the Company:

Focused EPC player.

Company has over 8 years of experience in executing EPC projects which have been in the building, roads, structure work, civil construction, railway work and turnkey water supply projects. Since 2015, Company has executed 38 projects.
Company has historically focussed on the executing EPC projects and accordingly have established our credentials as an EPC player capable of executing a range of these infra projects while working with renowned infrastructure companies and PWDs.
Company believes that focused approach shall enable us to benefit from future market opportunities and expand into newer markets.

Strong order book.

In EPC industry, Order Book is considered as an indicator of future performance since it represents a portion of anticipated future revenue.
Company has been able to achieve and maintain such an Order Book positions due to continued focus on our core areas and ability to successfully bid and win new projects across multiple segments.
As of February 29, 2024, Company’s order book comprised of projects across the states of Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh and Gujarat aggregating to Rs. 395.60 crores approx.

Financials of the Company:

(in Crores)	FY 21	FY 22	FY 23	Upto 30th Sept 23
Revenue	35.68	36.85	74.90	59.67
Net Profit	0.22	(-3.06)	11.31	6.04

Valuation of Peer Group Companies:

Company Name	Face Value	EPS	PE Ratio	RoNW	NAV
K2 Infragen Ltd	10	15.40	7.72	81.4%	27.53
Markolines Pavement Technologies Ltd	10	8.24	12.68	18.35%	44.91
Advait Infratech Ltd	10	15.59	17.91	19.60%	50.01

Fund Utilization:

Particulars	Amount (Rs. in Crores)
Working Capital requirements	13.50 cr
Capital Expenditure	8.31 cr

IPO Details:

Details	Info
Issue Opens on	28th March 2024
Issue Closes on	3rd April 2024
Issue Price	Rs.111- 119
Face Value	Rs.10
Minimum Lot	1200 Shares
Minimum Investment	Rs.1,42,800
Issue Constitutes	27 %
Issue Size	Rs.40.54 cr
Market Cap	Rs. 150 cr
Listing at	NSE SME
Equity Shares Offered (Fresh)	34,06,800 (Rs.40.54 cr)
Equity Shares Prior to the Issue	92,11,594
Equity Shares after the Issue	1,26,18,394

Also Read : List of Upcoming IPO’s in India.

Important Dates:

Finalization of Basis of Allotment	on or Before 4th April 2024
Initiation of Refunds	on or Before 5th April 2024
Credit of Equity Shares:	on or Before 5th April 2024
Listing Date:	on or Before 8th April 2024

Also Read: List of Upcoming SME IPO’s in India.

IPO Valuation Parameters:

Earnings Per Share (EPS)	Price To Earnings ratio (PE)	Return on Net Worth (RoNW)	Net Asset Value (NAV)
15.40	7.72	81.4%	27.53

Also Read: Complete List of NSE/BSE Holidays List>>

Should You Subscribe or Not ?
K2 Infragen Ltd stands out as a leading integrated engineering, procurement, and construction (EPC) firm, specializing in Power Engineering and Project Engineering. With a proven track record in designing and executing various projects, the company has garnered accreditation from esteemed departments and agencies such as the Public Works Department in Rajasthan (Class AA) and Madhya Pradesh, Bhopal (Class AA), showcasing their commitment to quality and reliability. As of October 31, 2023, K2 Infragen Ltd boasts an impressive portfolio of 15 ongoing projects valued at approximately Rs. 341.33 crores, demonstrating their robust presence and capability in the industry. Markets Guruji, advocates investing in the company, citing its growth potential and willingness to take calculated risks. For investors seeking to align with a company poised for expansion and success, K2 Infragen Ltd presents a compelling opportunity to be part of a promising growth journey in the engineering and construction sector.

Should You Subscribe or Not ?

K2 Infragen Ltd stands out as a leading integrated engineering, procurement, and construction (EPC) firm, specializing in Power Engineering and Project Engineering. With a proven track record in designing and executing various projects, the company has garnered accreditation from esteemed departments and agencies such as the Public Works Department in Rajasthan (Class AA) and Madhya Pradesh, Bhopal (Class AA), showcasing their commitment to quality and reliability.

As of October 31, 2023, K2 Infragen Ltd boasts an impressive portfolio of 15 ongoing projects valued at approximately Rs. 341.33 crores, demonstrating their robust presence and capability in the industry. Markets Guruji, advocates investing in the company, citing its growth potential and willingness to take calculated risks.

For investors seeking to align with a company poised for expansion and success, K2 Infragen Ltd presents a compelling opportunity to be part of a promising growth journey in the engineering and construction sector.

Company Contact Info:
K2 Infragen Ltd 801 A, B & 802 A, B, C, 8th Floor, Welldone Techpark, Sohna Road, Gurugram, Haryana –122 018, India. Telephone: +91 124 4896700 Email: cs@k2infra.com Website: www.k2infra.com/

Registrar to the Issue:
Kfin Technologies Limited Selenium Tower-B, Plot 31 & 32, Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad – 500 032, Telangana Telephone: +91 40 6716 2222; Email: k2infragen.ipo@kfintech.com Website: www.kfintech.com

Lead Manager to the Issue:
Expert Global Consultants Private Limited 1511, RG Trade Tower Netaji Subhash Place, Pitampura, New Delhi – 110034, India Telephone: +91 11 4509 8234 Email: ipo@expertglobal.in Website: www.expertglobal.in