Post by : Raman

NEW DELHI: The initial public offering (IPO) of GK Energy will close for bidding today, Tuesday, September 23. Investors have their final opportunity to subscribe to the ₹400 crore issue, which opened on September 19.

Founded in 2008, GK Energy Limited provides EPC services for solar-powered agricultural water pumps under the PM-KUSUM scheme. The company offers end-to-end solutions for farmers, including survey, design, installation, commissioning, and maintenance. GK Energy follows an asset-light approach, sourcing solar panels, pumps, and other components from specialized suppliers and selling them under its own brand.

IPO Subscription Status

On the last day of bidding, the GK Energy IPO is subscribed 42.75 times overall. The retail portion is booked 16.34 times, the non-institutional investors (NII) segment is subscribed 99.06 times, and the qualified institutional buyers (QIBs) quota has been bid 53.79 times.

Angel One has recommended investors to subscribe to GK Energy IPO, highlighting strong growth potential in the Indian solar pump sector, driven by government initiatives such as PM-KUSUM and state-level solar programs.

At the upper price band of ₹153 per share, the IPO is considered attractively priced, with a post-IPO P/E of 23.3x, lower than industry peers. The brokerage also noted strong revenue and PAT growth in FY2024, a robust order book, and a growing presence in the renewable energy sector.

Geojit Investments also gave the IPO a ‘Subscribe’ rating, noting the company’s strong execution capabilities and sustained government-backed demand, making it suitable for medium- to long-term investors.

GK Energy IPO Grey Market Premium (GMP)
The IPO is trading at a grey market premium of ₹20, suggesting a likely listing price of around ₹173, a 13% premium over the upper price band.

IPO Details

GK Energy’s IPO includes a fresh issue of 2.61 crore equity shares worth ₹400 crore and an offer for sale of 42 lakh shares by promoters Gopal Rajaram Kabra and Mehul Ajit Shah, totaling ₹64.26 crore.

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The price band is set at ₹153 per share, with a face value of ₹2. Retail investors must apply for a minimum of 98 shares, translating to an investment of ₹14,994 at the upper price band.

Listing and Allotment

The basis of share allotment is expected to be finalized on September 24, with listing scheduled for September 26 on both NSE and BSE. IIFL Capital Services Ltd. is the book-running lead manager, and MUFG Intime India Pvt. Ltd. is the registrar.

Of the IPO proceeds, ₹322.5 crore will be used for long-term working capital, while the remainder will go towards general corporate purposes.

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