Stellar Start: Kay Cee Energy lists at 367% premium at Rs 252 per share on the NSE

Kay Cee Energy and Infra Limited provides services for the construction and commissioning of electricity transmission and distribution systems, debuted on the Indian stock market today.

Upon its debut on the NSE, the stock opened at Rs 252 per share, reflecting a 367% premium compared to the final issue price of Rs 54 per share. The current market capitalisation of the company stands at Rs 262 crore.

IPO Proceeds

The company intends to use the net proceeds from the Fresh Issue for the following purposes: Funding the working capital requirements of the company and general corporate purposes.

Company profile

Kay Cee Energy and Infra Limited provide services for the construction and commissioning of electricity transmission and distribution systems. The company undertakes engineering, procurement, and construction (EPC) projects for government entities such as Rajasthan Rajya Vidyut Prasaran Nigam Limited.

The company’s service portfolio includes handling, erection, testing, and commissioning of equipment and materials for power transmission and distribution systems. This encompasses transmission lines, construction of substations, automation, extension/modification, and expansion of existing power systems. The company has a strong base of loyal customers, including well-known public sector companies such as Rajasthan Rajya Vidyut Prasaran Nigam Limited and Power Grid Corporation of India Limited.

The company also provides services to companies like Wonder Cement Limited, H G Infra Engineering Limited, Gawar Construction Limited, Raj Shyama Constructions Private Limited, Larsen and Toubro Limited, and Sadbhav Engineering Limited.

Subscription details: 

On January 2, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 1052.45 times. The public issue received remarkable interest, with the retail category being subscribed 1311.10 times, the QIB category achieving a subscription rate of 127.71 times, and the NII category reaching a subscription rate of 1668.97 times.

The company attracted Rs 4.32 crore from various anchor investors by allocating 8 lakh equity shares at Rs 54 per share. The complete lock-in period for these anchor investors ends on May 17, 2024.

The IPO price range was set between Rs 51 and Rs 54, with a face value of Rs 10 per share and a lot size of 2000 shares. The total size of the company’s IPO was Rs 15.93 crore, and the final share issue price was fixed at Rs 54 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have earned an impressive multibagger 367% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.