GK Energy Limited is hitting the capital markets with its Initial Public Offering (IPO). Investors have been closely tracking this issue, given the company’s presence in the solar-powered agricultural pump EPC business under the Government’s PM-KUSUM scheme. In this detailed GK Energy IPO Review, we will cover the IPO Date, IPO Price, IPO Size, GMP, financials, objectives, peer comparison, reasons to invest, risk factors, and whether you should subscribe or avoid this IPO.
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About GK Energy Ltd.
Incorporated in 2008 and headquartered in Pune, GK Energy provides engineering, procurement, and commissioning (EPC) services for solar-powered agricultural water pump systems. These are primarily implemented under the Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) scheme. The company follows an asset-light model and sources solar panels, pumps, and components from specialized vendors under its “GK Energy” brand.
As of August 2025, the company operates with 12 warehouses across 3 states, 90 employees, and over 700 workmen, serving farmers in five states. It offers end-to-end solutions including survey, design, installation, commissioning, and maintenance of solar-powered pump systems.
Competitive Strengths
- Strong presence in the government-backed PM-KUSUM scheme.
- Asset-light business model with outsourcing from quality vendors.
- Healthy return ratios – ROE of 63.71% and ROCE of 55.65%.
- Experienced promoters – Gopal Rajaram Kabra and Mehul Ajit Shah.
- Expanding warehousing and workforce to cater to multiple states.
GK Energy IPO Issue Details
- IPO Date: September 19, 2025 – September 23, 2025
- IPO Size: ₹464.26 Crores
- Fresh Issue: ₹400 Crores (2.61 Cr shares)
- Offer for Sale: ₹64.26 Crores (0.42 Cr shares)
- IPO Price Band: ₹145 – ₹153 per share
- Face Value: ₹2 per share
- Lot Size: 98 shares
- Minimum Investment: ₹14,994 (1 lot)
- Listing At: NSE & BSE
- Promoters: Gopal Rajaram Kabra & Mehul Ajit Shah
- BRLMs: IIFL Capital Services Ltd. & HDFC Bank
- Registrar: MUFG Intime India Pvt. Ltd.
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Financial Performance (₹ in Crores)
| Particulars | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Revenue | 285.45 | 412.31 | 1,099.18 |
| EBITDA | 17.18 | 53.83 | 199.69 |
| PAT | 10.08 | 36.09 | 133.21 |
| Net Worth | 19.87 | 55.96 | 209.09 |
| Borrowings | 42.61 | 62.29 | 217.79 |
Key Ratios:
- EBITDA Margin: 18.24%
- PAT Margin: 12.12%
- Debt-Equity Ratio: 0.74
- Price-to-Book: 12.39x
- Post IPO P/E: 23.3x
Objects of the IPO
The company plans to utilise the proceeds as follows:
- Funding long-term working capital requirements – ₹322.46 Crores
- General corporate purposes
GK Energy IPO Valuation & Peer Comparison
- EPS (FY2025 Post IPO): ₹6.57
- P/E at upper band (₹153): 23.3x
Peer Comparison:
- Highest P/E: Waaree Energies – ~45x
- Lowest P/E: KPI Green Energy – ~18x
- Industry Average: ~28x
GK Energy’s valuation of 23.3x is below industry average, making it reasonably priced compared to peers.
Grey Market Premium (GMP)
As per market sources, the GK Energy IPO GMP is around ₹22 – ₹25 per share, indicating a potential listing gain of 15-18% over the issue price. (Note: GMP is unofficial and subject to fluctuations.)
Reasons to Invest in GK Energy IPO
- Robust Financial Growth – Revenue grew from ₹285 Cr (FY23) to ₹1,099 Cr (FY25). PAT surged 13x in 3 years.
- Government Support – Operates under PM-KUSUM scheme ensuring steady demand.
- Strong Margins & Returns – ROE of 63.7% and PAT margin of 12% is healthy.
- Reasonable Valuation – P/E of 23.3x is attractive vs peers.
- Positive GMP Trend – Indicates healthy investor demand.
Risk Factors in GK Energy IPO
- High Dependence on Govt. Schemes – Business heavily tied to PM-KUSUM scheme allocations.
- Rising Debt Levels – Borrowings rose from ₹42 Cr in FY23 to ₹218 Cr in FY25.
- Customer Concentration – Large dependence on government contracts.
- Policy & Regulatory Risks – Any change in renewable policies may impact growth.
- Working Capital Intensive – Requires significant upfront capital for EPC projects.
- Investors should go through all internal and external risk factors at GK Energy IPO RHP / DHRP.
How to Apply for GK Energy IPO?
Investors can apply via:
- ASBA (through net banking of SCSBs like HDFC, ICICI, SBI, etc.).
- UPI-based applications through stock brokers like Zerodha, Groww, Paytm Money, Angel One.
- Minimum lot size: 98 shares (₹14,994).
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Conclusion – Should you Invest in GK Energy IPO?
GK Energy IPO comes with a strong financial track record, reasonable valuations, and government-backed demand. However, investors should note the risks of debt levels, dependence on schemes, and policy changes. Given the attractive valuation compared to peers and positive GMP, this IPO looks good for medium to long-term investors as well as listing gains.
Our View: Investors can Subscribe to this IPO for both listing gains and long-term potential.
FAQs on GK Energy IPO
1. What is the GK Energy IPO Date?
The IPO opens on September 19, 2025 and closes on September 23, 2025.
2. What is the GK Energy IPO Price Band?
The price band is ₹145 – ₹153 per share.
3. What is the GK Energy IPO Size?
The IPO size is ₹464.26 Crores (₹400 Cr Fresh + ₹64.26 Cr OFS).
4. What is the GK Energy IPO Lot Size?
The lot size is 98 shares, requiring a minimum investment of ₹14,994.
5. What is the GMP of GK Energy IPO?
Current Grey Market Premium (GMP) is around ₹22 – ₹25.
6. Who are the promoters of GK Energy?
The promoters are Gopal Rajaram Kabra and Mehul Ajit Shah.
7. Should I invest in GK Energy IPO?
Yes, considering financial growth, reasonable valuation, and demand outlook, this IPO is worth subscribing to, though risks should be noted.
Disclaimer: This article is for informational purposes only and is not a recommendation to buy, sell or hold any shares or apply for any IPO. The securities market is subject to risks, and readers should consult their financial advisor before making any investment decisions.
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