GK Energy IPO GMP: Solar EPC Services Provider’s Public Issue Set To Open Tomorrow-  Know Key Details From RHP

GK Energy IPO: GK Energy Ltd’s public issue is scheduled to open on September 19. The bidding window for the solar engineering procurement company’s public issue will remain open from September 19 to September 22. Here’s a look at key details of GK Energy IPO from the company’s red herring prospectus (RHP):

GK Energy IPO GMP

According to various websites that track the demand for shares of unlisted companies, the GK Energy IPO grey market premium (GMP) ranges between Rs 45 and Rs 46 per share one day before the opening of the subscription window. Based on the GMP of Rs 46, shares of GK Energy Ltd are expected to debut at Rs 199 per share, indicating potential listing gains of over 30 per cent.

GK Energy IPO: Offer Size, Listing Date, Price Band

GK Energy Ltd seeks to raise Rs 464.26 through its public issue, which consists of a fresh issue of 26.1 million shares amounting to Rs 400 crore and an offer for sale of 4.2 million shares amounting to Rs 64.26 crore. The GK Energy IPO price band has been set between Rs 145 and Rs 153. Retail individual investors can place bids for a minimum of 1 lot comprising 98 shares, amounting to an investment of Rs 14,994.

GK Energy IPO share allotment status is likely to be finalised on September 24.  Once the share allotment status of GK Energy IPO is decided, successful bidders will receive shares of GK Energy in their demat accounts on September 25. Shares of GK Energy will tentatively list on the BSE and NSE. GK Energy IPO listing date is September 26.

As much as 50 per cent of GK Energy IPO’s offer size has been set aside for the qualified institutional buyer (QIB) category. GK Energy Ltd has reserved 35 per cent of the offer size for retail investors and 15 per cent of the public issue has been set aside for non-institutional investors (NIIs).

GK Energy: Key Financials

GK Energy Ltd consolidated total income for the fiscal ended March 31, 2025 stood at Rs 1,099.18 crore, the company’s profit-after-tax stood at Rs 133.21 crore and its networth stood at Rs 209.09 crore.

GK Energy: Peers

GK Energy’s competitors include other players which provide EPC services for solar-powered agricultural water pump systems in India. According to the RHP, the company’s listed competitors include Shakti Pumps (India) Ltd and Oswal Pumps Ltd.

GK Energy: Business Model

GK Energy operates in the solar EPC services industry. The company offers farmers solutions for the survey, design, supply, assembly and installation, testing, commissioning and maintenance of solar-powered pump systems as a part of its business model. The solar EPC player also mentioned in its RHP that it has been empanelled as a vendor under the  Ministry of New and Renewable Energy for the PM-KUSUM Scheme.  The company is also empanelled under several other state government schemes in Maharashtra, Madhya Pradesh and Chhattisgarh. The company sells its solar-powered agricultural pumps via both the direct-to-beneficiary model through the scheme and through direct sales as well.

GK Energy IPO: Risks and Strengths

Here’s a look at some of the key risks related to GK Energy’s business according to the company’s RHP:

• GK Energy disclosed in its RHP that it derived 99.32 per cent, 91.07 per cent and 90.55 per cent of its revenue from operations for Fiscals 2025, 2024 and 2023, respectively, from EPC of solar-powered pump systems. Thus decrease in demand for the pumps can adversely affect the company’s business.

• The solar EPC service provider also disclosed in its RHP that failure to recover trade receivables can materially and adversely affect its business and financial condition.

• GK Energy said that since it is a pure play EPC company it may find it harder to compete with players that currently manufacture solar panels.

Here’s a look at some of the key strengths of GK Energy according to the company’s RHP:

• GK Energy is the largest pure play provider of the EPC of solar-powered pump systems in Maharashtra under the PMKUSUM Scheme as of July 31, 2025 as per CRISIL’s industry research report on solar equipment and renewable energy.

• GK Energy claims to have a decentralised infrastructure in three states, which enables it to efficiently operate across broad geographic areas in five states.

• The solar EPC player claimed in its RHP that it is well-positioned to seize the growing market opportunity presented by government schemes and general public awareness of the importance of renewable energy amid rising global warming.

GK Energy IPO: Objective

GK Energy plans to use the money raised via the public issue for funding its long-term working capital requirements and general corporate purposes.