GK Energy Limited is all set to open its Initial Public Offering (IPO) tomorrow i.e September 19, ending on September 23, 2025. The company looks to gather ₹464.26 crore through the IPO, including a fresh issue of 2.61 crore shares of ₹400 crore and an offer for sale of 0.42 crore shares of ₹64.26 crore. The shares offered are to be of face value ₹2 each and will be offered at the price band of ₹145 to ₹153. The IPO will be traded on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) with a tentative listing date of September 26, 2025.
Business Profile and Market Presence
Established in 2008, Pune-based firm is a renewable energy company engaged in solar-powered agriculture water pump system EPC services. The company mainly deals with farmers as part of the Government of India’s PM-KUSUM programme, encouraging the use of solar power in agriculture. GK Energy has an asset-light model in which it outsources solar panels and pumps to third-party. The firm operates with 12 warehouses and employs approximately 90 staff members and 700 workers in five states with more than 42,000 installations completed under PM-KUSUM, having a market share of 8.56% as of 2024.
Financial Highlights and Growth Potential
GK Energy displays sound financial performance with its revenue growing from ₹285 crore in FY23 to ₹1,099 crore in FY25, and its profit after tax (PAT) rising about 13 times over the same duration. The firm shows strong return ratios with a Return on Equity (ROE) of 63.71% and Return on Capital Employed (ROCE) of 55.65%, in addition to a high PAT margin of 12%. The P/E ratio of the company is 23.3 which reflects its fair valuation as compared to the peers in the renewable segment.
Details of IPO and Investment Risks
The IPO has a minimum bid of approximately ₹14,994 for retail investors (98 shares at the higher price band). The issue allots at least 35% shares to retail investors, 50% to Qualified Institutional Buyers (QIBs), and 15% to High Net Worth Individuals (HNIs). The Grey Market Premium (GMP) is around ₹22 to ₹25, reflecting a possible listing gain of 15-18%.
Even with favourable financials and growth prospects backed by a government scheme, investors need to take into account risks including excessive dependence on PM-KUSUM scheme allocations, increasing debt of ₹42 crore in FY23 rising to ₹218 crore for FY25, customer concentration in government orders, regulatory risks associated with renewable energy policies, and working capital intensive nature of EPC projects.
To Conclude
Summing up, GK Energy’s IPO offers a chance to invest in a fast-growing renewable energy firm with government support and solid financials. Its growth sustainability depends on government support and operational performance in a competitive setting. Potential investors are advised consider these variables carefully before subscribing.
