GK Energy IPO: Price Band, Analysis, Allotment, And GMP

GK Energy IPO – Company Analysis

• Company: GK Energy Ltd. (Incorporated in 2008).
  
  

• Business: Provides EPC services for solar-powered agricultural water pump systems under the PM-KUSUM Scheme.
  
  

• Services: Survey, design, supply, installation, testing, commissioning, and maintenance.
  
  

• Business Model: Asset-light – key components (panels, pumps, controllers) sourced from third-party vendors.
  
  

• Core Strength: Focused on renewable energy-driven irrigation solutions in India.
  
  

GK Energy IPO Details

• IPO Opening Date: Sep 19, 2025
  
  

• IPO Closing Date: Sep 23, 2025
  
  

• IPO Allotment Date: Sep 24, 2025
  
  

• Refund Initiation: Sep 25, 2025
  
  

• Tentative Listing Date: Sep 26, 2025 (BSE & NSE)
  
  

• Issue Size: Rs. 464.26 Cr (3.03 Cr shares)
  
  

• Fresh Issue: Rs. 400 Cr (2.61 Cr shares)
  
  

• Offer for Sale (OFS): Rs. 64.26 Cr (0.42 Cr shares)
  
  

• Price Band: Rs. 145 – Rs. 153 per share
  
  

• Lot Size: 98 shares per lot
  
  

• Registrar: Link Intime India Pvt. Ltd.
  
  

• Issue Type: Book Built Issue IPO
  
  

Hidden Facts about the IPO

• Trademark Ownership: Brand is owned by promoter Gopal Kabra, not the company. GK Energy pays royalty (0.1% of sales).
  
  

• Pre-IPO Placement: Raised ~Rs. 100 Cr privately, giving early investors preferential pricing advantage.
  
  

• Promoter Cost Advantage: Promoters’ share acquisition price ranges between Rs. 0.03 – Rs. 0.15, creating a large value gap with IPO pricing.
  
  

• Debt Guarantee: Parent company guarantees subsidiary GK Energy Solar Pvt. Ltd.’s borrowings, adding risk exposure.
  
  

• Corporate Actions: Conducted a 25:1 bonus issue and share split (FV Rs. 10 → Rs. 2) before IPO.
  
  

Industry Outlook

• India’s solar pump industry is expected to grow at a CAGR of 52% (FY24–FY29).
  
  

• Market size projected at Rs. 300–320 Bn by FY29.
  
  

• Government focus on renewable energy and agricultural electrification strengthens demand.
  
  

Company Financials (Consolidated)

(As of March 31)

Total Assets:

• FY25 – Rs. 583.62 Cr
  
  

• FY24 – Rs. 388.19 Cr
  
  

• FY23 – Rs. 299.85 Cr
  
  

Revenue:

• FY25 – Rs. 1,099.18 Cr
  
  

• FY24 – Rs. 798.62 Cr
  
  

• FY23 – Rs. 619.47 Cr
  
  

PAT (Profit After Tax):

• FY25 – Rs. 133.21 Cr
  
  

• FY24 – Rs. 84.54 Cr
  
  

• FY23 – Rs. 56.72 Cr
  
  

EBITDA:

• FY25 – Rs. 199.69 Cr
  
  

• FY24 – Rs. 143.81 Cr
  
  

• FY23 – Rs. 98.24 Cr
  
  

Net Worth:

• FY25 – Rs. 209.09 Cr
  
  

• FY24 – Rs. 125.12 Cr
  
  

• FY23 – Rs. 76.34 Cr
  
  

Borrowings:

• FY25 – Rs. 217.79 Cr
  
  

• FY24 – Rs. 163.42 Cr
  
  

• FY23 – Rs. 149.88 Cr
  
  

The Objective of the Issue

• Working Capital Requirements: Rs. 322.46 Cr
  
  

• General Corporate Purposes
  
  

• Debt Obligations and Expansion
  
  

Listed Peers of GK Energy Ltd.

• Waaree Renewable Technologies Ltd. – EPS: Rs. 44.32 | P/E: 59.10x
  
  

• Shakti Pumps Ltd. – EPS: Rs. 24.15 | P/E: 38.75x
  
  

• Inox Green Energy Services Ltd. – EPS: Rs. 5.68 | P/E: 35.20x
  
  

Evaluation of P/E Ratio

• EPS (FY25):