K2 Infragen IPO GMP, Timeline, Lot Size, Reservation, How to apply?

K2 Infragen IPO opens March 28, 2024, and closes April 3, 2024, with allotment expected by April 4. Listing on NSE SME is tentatively set for April 8, 2024. The price band is fixed between ₹111-₹119 per share.

K2 Infragen IPO GMP

K2 Infragen, an engineering, procurement, and construction (EPC) company, is set to launch its initial public offering (IPO) on March 28, 2024. 

The K2 Infragen IPO GMP is currently estimated at ₹15. This signifies that the grey market anticipates the stock to trade ₹15 higher than the IPO price band of ₹111 – ₹119 per share.

K2 Infragen IPO Reservation

The K2 Infragen IPO follows the reservation system mandated by SEBI (Securities and Exchange Board of India) for book-built issues. 

• Qualified Institutional Buyers (QIBs): This category includes institutions like banks, financial institutions, mutual funds, and foreign institutional investors (FIIs). They are allocated a maximum of 50% of the total issue size after excluding the market maker portion.
• Retail Individual Investors (RIIs): This category comprises individual investors applying for up to ₹2 lakh worth of shares. They are reserved a minimum of 35% of the net offer, ensuring wider public participation.
• Non-Institutional Investors (NII): This category includes high net worth individuals (HNIs), companies, trusts, etc., applying for more than ₹2 lakh worth of shares. They are allocated a minimum of 15% of the net offer, further divided into:
  • Small NII (sNII): This sub-category caters to NIIs applying between ₹2 lakh and ₹10 lakh. They receive 1/3rd of the total NII allocation.
  • Big NII (bNII): This subcategory caters to NIIs applying for more than ₹10 lakh. They receive the remaining 2/3rd of the total NII allocation.

K2 Infragen IPO Lot Size

The K2 Infragen IPO follows a lot size system, which dictates the minimum number of shares an investor can bid for. The lot size and investment implications for different investor categories are:

Lot Size: 1200 Shares

• This means that investors can apply for shares in multiples of 1200. You cannot bid for a lesser number of shares than the lot size.

Investment Amount:

• The investment amount varies depending on the applied lot size and the IPO price band (₹111 – ₹119 per share).

• Retail investors are limited to applying for a minimum and maximum of 1 lot (1200 shares) due to SEBI regulations for SME IPOs.
• HNIs categorised as NIIs can apply for a minimum of 2 lots (2400 shares) or more in multiples of the lot size.
• The actual investment amount will depend on the final IPO price per share determined during the bidding process.

K2 Infragen IPO Anchor Investor Details

The K2 Infragen’s Anchor Investor participation is:

• Funds Raised: The company successfully secured ₹11.27 crore from anchor investors.
• Bidding Date: Anchor investors submitted their bids on March 27, 2024.
• Shares Allocated: A total of 946,800 shares were offered to anchor investors.

Lock-in Period:

• 50% Shares: Anchor investors are subject to a 30-day lock-in period for half of the allocated shares (473,400 shares). They cannot sell these shares in the open market until May 4, 2024.
• Remaining 50% Shares: The remaining half (473,400 shares) have a longer lock-in period of 90 days. These shares cannot be sold before July 3, 2024.

Confidence Signal: 

• Their participation indicates their belief in the company’s future, potentially influencing other investors.

Price Stability: 

• By holding shares for a period, they can contribute to price stability after the IPO listing.

How to apply for K2 Infragen IPO?

Steps to apply are as follows:

• Ensure you have a Demat account and a UPI account linked to your bank account.
• Login to your broker’s online platform (Zerodha, Upstox, etc., if they support UPI IPO).
• Navigate to the IPO section and find the K2 Infragen IPO.
• Click on “Bid” or “Apply.”
• Enter your UPI ID, the number of shares you want (in multiples of the lot size – 1200), and the price you’re willing to pay (within the price band).
• Submit the application.
• You’ll then be redirected to your UPI app to approve the mandate for blocking the funds.