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.
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.
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.
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.
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.
