26 Sep GK Energy shares debut at 12% premium over IPO price
The company’s Rs 464 crore IPO saw strong investor demand. The issue, which comprised a fresh issue of Rs 400 crore and an offer for sale of Rs 64.26 crore, was subscribed 93.6 times overall.
Subscription details
The qualified institutional buyer (QIB) portion saw the strongest response at 193 times, while the non-institutional investor (NII) category was subscribed nearly 129 times. Retail investors also participated actively, bidding 21.8 times their allocated shares.
Company profile
GK Energy is India’s largest pure-play provider of engineering, procurement and commissioning (EPC) services for solar-powered agricultural water pump systems under the government’s PM-KUSUM scheme.
The company provides end-to-end solutions, including survey, design, supply, installation, testing, and maintenance of solar-powered pump systems. Its business model is asset-light, sourcing panels, pumps, and other components from specialist vendors under the “GK Energy” brand.As of August 2025, GK Energy had orders worth over Rs 1,028 crore on hand. It operates across five states with 12 warehouses and employs 90 staff along with over 700 workmen.
Financials and Valuation
The company has delivered strong growth in recent years. In FY25, GK Energy posted revenue of Rs 1,099 crore and profit after tax of Rs 133 crore, translating into a PAT margin of 12.1%. EBITDA for the year stood at Rs 200 crore with an 18.2% margin.
Return ratios are robust, with return on equity at 63.7% and return on capital employed at 55.7%. At the upper price band of Rs 153, the IPO valued the company at Rs 3,103 crore, implying a price-to-earnings multiple of about 23 times post-issue earnings.
Use of Proceeds
Net proceeds from the fresh issue will primarily fund long-term working capital requirements amounting to Rs 322 crore, with the remainder going towards general corporate purposes.
Despite being fully priced, the IPO drew strong institutional backing and significant retail participation. With a grey market premium of Rs 12, GK Energy’s listing is expected to deliver moderate but positive returns, aligning with the company’s strong fundamentals and order book visibility.
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