The initial public offering (IPO) of GK Energy will close for bidding today, Tuesday, September 23. Investors who wish to subscribe to GK Energy IPO have the last chance to bid today.
The ₹400 crore IPO had opened on Friday, September 19.
Founded in 2008, GK Energy Limited delivers EPC services for solar-powered agricultural water pumping systems under the PM-KUSUM scheme, providing farmers with comprehensive solutions ranging from survey and design to installation, commissioning, and maintenance. Following an asset-light approach, the company procures solar panels, pumps, and other components from specialized suppliers and sells them under its “GK Energy” brand.
GK Energy IPO subscription status
On the last day of bidding, the issue was subscribed 7.99 times. The retail portion was booked 7.93 times while the non-institutional investors (NII) category was subscribed 15.51 times. Finally, the qualified institutional buyers (QIBs) quota was bid 2.92 times.
GK Energy IPO Review
Angel One advised investors to subscribe to the GK Energy IPO, highlighting that the Indian solar pump sector is poised for robust growth, driven by government initiatives like the PM-KUSUM scheme and multiple state-level solar programs.
At the top end of the price band of ₹153 per share, GK Energy is considered attractively priced, with a post-IPO P/E of 23.3x – lower compared to its industry peers.
“The company has demonstrated strong financial performance, with significant revenue and PAT growth in FY2024. Its robust order book and presence in the growing renewable energy sector further support its growth prospects,” the brokerage firm said.
On the other hand, analysts at Geojit Investments noted that the company’s FY25 price-to-earnings ratio appears fairly valued when compared with peers. “With strong execution capabilities and government-backed demand, GK Energy is poised for sustained growth,” Geojit said, giving the IPO a ‘Subscribe’ rating for investors with a medium- to long-term view.
GK Energy IPO GMP today
The shares of GK Energy IPO is commanding a strong premium in the grey market, with its GMP is trading at ₹20, as per investorgain.com. This means that the estimated listing price of GK Energy IPO is likely to be ₹173, which is 13.07 per cent.
GK Energy IPO Details
GK Energy’s IPO includes a fresh issue of 2.61 crore equity shares worth ₹400 crore, along with an offer for sale of 42 lakh shares by promoters Gopal Rajaram Kabra and Mehul Ajit Shah, totaling ₹64.26 crore.
The price band of the IPO has been set at ₹153, with a face value of ₹2 per share. For retail investors, the minimum application size is 98 shares, translating to an investment of ₹14,994 at the upper price band.
The basis of share allotment is likely to be finalized on September 24, with the listing set for September 26 on both NSE and BSE. IIFL Capital Services Ltd. is the book-running lead manager, while MUFG Intime India Pvt. Ltd. is the registrar.
Of the IPO proceeds, GK Energy intends to allocate ₹322.5 crore towards long-term working capital needs, with the balance reserved for general corporate purposes.
IIFL Capital Services Ltd. is the book running lead manager and MUFG Intime India Pvt.Ltd. is the registrar of the issue.