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

GK Energy IPO - Company Analysis

GK Energy IPO, a Mainboard IPO, is a bookbuilding issue of Rs. 464.26 Cr (~3.03 Cr Shares) by GK Energy Ltd., which was incorporated in 2008 and is responsible for providing engineering, procurement, and commissioning (or "EPC") services for solar-powered agricultural water pump systems under Component B of the Central Government's Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan scheme (the "PM-KUSUM Scheme").

For the survey, design, supply, assembly, installation, testing, commissioning, and maintenance of solar-powered pump systems, the company provides farmers with a comprehensive, one-stop shop.

GK Energy has an asset-light business strategy. Under the "GK Energy" name, the business purchases solar panels, pumps, and other parts of solar-powered pump systems from a variety of specialized suppliers.

GK Energy IPO Details

The GK IPO open date is from Sep 19 to Sep 23, with IPO allotment on Sep 24, refund initiation on Sep 25, 2025.

The Rs. 464.26 Cr mainline IPO comprises a combination of fresh issue of 2.61 crore shares (Rs. 400 Cr) and offer for sale of 0.42 crore shares (Rs. 64.26 Cr).

The GK Energy IPO listing date might be on Friday, 26 September 2025, and it will be listed at the BSE and NSE. The GK Energy IPO price band is Rs. 145 to Rs. 153 for each Share.

Events	Date
IPO Opening Date	Sep 19, 2025
IPO Closing Date	Sep 23, 2025
IPO Allotment Date	Sep 24, 2025
Refund Initiation	Sep 25, 2025
Tentative IPO Listing Date	Sep 26, 2025

 

GK Energy IPO- Hidden Facts

1. Risk Associated with Trademark Ownership

The brand “GK Energy” is not owned by the company. It is owned by promoter Gopal Rajaram Kabra. It is owned and used via a Trademark License Agreement, which requires the company to pay 0.1% of sales as royalty to the promoter starting from April 2025.

Any cessation of this agreement will lead to the company losing the rights to the brand and to itself.

2. Pre-IPO Placement Angle

The company managed to raise Rs. 999.99 million (approximately close to Rs. 100 crore) via pre-IPO placement. This has been marked against the remaining fresh issue size and was recorded prior to the company going public. The placement was done at a price and value between the company and the BRLMs (not in the public domain at the moment).

This means that large investors entered earlier than small retail investors at a potentially discounted price.

3. The promoters' ultra-low cost of acquisition

The promoter Gopal Kabra has a weighted average cost per share of Rs. 0.03, while Mehul Shah is at Rs. 0.15.

The promoters at this current moment will have and enjoy multi-thousand % unrealised profits if the opening price for the IPO is in the Rs. 150 - Rs. 200 range.

Rewriting this regarding risk and strategies subsections in a business plan, defining the concepts, illuminating the strategies using these examples as a case study

4. Subsidiary Satellite Debt Risk

The subsidiary GK Energy Solar Pvt. Ltd. (established in November 2024) received a Rs. 20.19 million unsecured loan (7% interest) from the parent company. Further, the subsidiary company is benefiting from the corporate guarantee that GK Energy Ltd. issued on its behalf for the overdraft facility of  Rs. 130 million.

In case of a default on loan repayments, the parent company is entitled to the liabilities.

5. Recent Bonus & Split Strategy

Earlier, the IPO, the company issued a 25:1 bonus issue and share split (from Rs. 10 FV to Rs. 2 FV).

This move is designed to give promoters the ability to increase their proportion of shares at a very low cost and also demonstrate extremely low purchase costs for the shares.

 

Industry Outlook

The market will grow at a CAGR of over 52% between Fiscals 2024 and 2029, reaching Rs. 300-320 Bn (as per Crisil Intelligence).

If you want to apply for the IPO, click to open a Demat Account.

 

Company Financial (Consolidated)

(Amount in Cr)

Period	31 Mar 2025
Total Assets	583.62
Total Revenue	1,099.18
PAT	133.21
EBITDA	199.69
Net Worth	209.09
Reserves and Surplus	175.07
Total Borrowing	217.79

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

Net Cash Flow In Multiple Activities	FY25 (Consolidated)
Net Cash Flow Operating Activities	(986.02)
Net Cash Flow Investing Activities	(530.21)
Net Cash Flow Financing Activities	1,520.55

 

Revenue Bifurcation 

State-wise Revenue Breakdown

 

Products and Service-wise Revenue Breakdown

(Source : RHP)

 

The Objective of The Issue

• Paying for long-term working capital needs. ~ Rs. 322.46 Cr.

• General corporate purposes.

Click to check the IPO application status.

Listed Peers of GK Energy Ltd.

Company Name	Face Value (Rs. per Share)	EPS (Rs.)	P/E (x)
Shakti Pumps (India) Limited	10	33.97	24.11
Oswal Pumps Limited	1	28.21	29

Valuation

Metric	Value
Price to Book Value	12.39
RoNW	63.71%
ROCE	55.65%
ROE	63.71%
PAT Margin	12.12%
Debt/Equity	0.74
EBITDA	18.24%

 

Evaluation of P/E Ratio

Considering the period of FY 2025, with an EPS of Rs. 7.86 from the last year, the resulting P/E ratio is 19.46x. When compared with the industry’s average P/E of 26.56x, it indicates justified price bid (on a P/E ratio basis only). Hence, the price of the Share seems fairly priced for the investors.

Explore the Ivalue Infosolutions IPO.

IPO's Strengths 

• GK Energy holds a 17% participation in Maharashtra's Magel Tyala Saur Krushi Pump Yojana tenders, making it one of the leading companies in solar-powered agricultural water pumps.

• Strong revenue growth.

• High Returns Ratios Strong profitability and effective capital usage are demonstrated by FY25, ROE = 63.71% and ROCE = 55.65%.

• Support of Government Schemes.

 

 

IPO’s Weaknesses 

• EPC of solar-powered agri-pumps accounts for about 99 percent of revenue. Any reduction in demand or modification to subsidy programs will be severely felt.

• Reliance on government funding.

• Issue of Trademark Ownership.

• The Promoter, not the company, is the owner of the "GK Energy" brand. The business may lose its branding rights if the trademark license agreement expires.

 

GK Energy IPO GMP 

GK Energy IPO GMP today has not started yet as of 16 Sep 2025, while writing this information.

GK Energy Limited IPO Summary

IPO Opening & Closing Date	Sep 19, 2025 to Sep 23, 2025
Face Value	Rs. 2 per Share
Issue Price	Rs. 145 to Rs. 153
Lot Size	98 Shares
Issue Size	3,03,43,790 Shares (Rs. 464.26 Cr)
Offer for Sale	42,00,000 Shares (Rs. 64.26 Cr)
Fresh Issue	2,61,43,790 Shares (Rs. 400 Cr)
Listing At	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	MUFG Intime India Pvt. Ltd.

 

 
GK Energy IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (98 Shares) amounting to Rs. 14994 and 13 Lots (1274 Shares) amounting to Rs. 194922, respectively, while for S-HNI investors, the minimum Lot is 14 (1372 Shares) amounting to Rs. 209916.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lots
SHNI (Minimum)	14 Lots
SHNI (Maximum)	66 Lots
BHNI (Minimum)	67 Lots

 

GK Energy IPO Reservation

Institutional Share Portion	50%
Retail Investors' Share Portion	35%
Non-Institutional Shares Portion	15%

 

GK Energy IPO Allotment Status

To check the GK Energy IPO allotment status, visit the official Registrar’s website or the BSE website. Below are the website links for you.

Using BSE Website - ​BSE IPO allotment status

 

Promoters And Management of GK Energy Ltd.

• Gopal Rajaram Kabra

• Mehul Ajit Shah. 

Pre-Issue Promoter Shareholding	93.29%
Post-Issue Promoter Shareholding	78.64%

 

GK Energy IPO Lead Managers

• IIFL Capital Services Ltd.

 

Dividend Policy

The company has not paid a dividend during the last three years.

Conclusion

Investors can learn more about India's rapidly expanding solar pump industry, which is supported by robust government initiatives, through the GK Energy IPO. The issue appears promising due to its strong revenue growth, good return ratios, and reasonable values. Risks, including trademark ownership, subsidiary responsibilities, and excessive reliance on subsidies must be taken into account.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Click Here To Stay Updated With The Upcoming IPOs.

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.