IPO Details
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IPO Size
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Schedule of GK Energy Ltd IPO
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About IPO
GK Energy Ltd will soon launch its IPO, which will comprise a fresh issue and an offer for sale. While the fresh issue size is pegged at ₹500 crore, the offer for sale consists of up to 8,400,000 equity shares with a face value of ₹2 each.
Objectives of GK Energy Ltd
The Net Proceeds of the Fresh Issue are proposed to be utilised in the following manner:
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Funding the working capital requirements of the Company.
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General corporate purposes.
GK Energy Ltd Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | ₹500 crore |
Offer for Sale | Up to 8,400,000 equity shares |
EPS (in ₹) for FY 24 | 2.14 |
GK Energy Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the Net Offer |
Non-institutional Investors (NIIs) | Not less than 15% of the Net Offer |
Retail-individual Investors (RIIs) | Not less than 35% of the Net Offer |
Industry Outlook
The global solar-powered pump systems market has experienced significant growth from 2018 to 2022, driven by their sustainability and cost-effectiveness compared to diesel-powered irrigation. Governments and international organisations are incentivising adoption to address climate change, energy access, and rising fuel costs. According to IRENA, agricultural solar pump capacity nearly doubled during this period, with total additions reaching 596 MW from 2019 to 2022, of which India contributed 96%.
Company Information
GK Energy Ltd is India’s leading EPC provider for solar-powered agricultural water pump systems. It offers farmers a complete solution, from survey and design to installation, commissioning, and maintenance of the solar powered pumps. Empanelled under the Ministry of New and Renewable Energy, it operates in Maharashtra, Haryana, Rajasthan, and Uttar Pradesh, which together accounted for 81% of approved subsidies under the scheme as of September 30, 2024. It has also applied for empanelment in Madhya Pradesh (4% of approved subsidies) and participates in multiple state government schemes.
GK Energy Ltd Strengths
Maharashtra’s Leading EPC Provider for Solar Pumps
GK Energy Ltd is the leading pure-play EPC provider of solar-powered pump systems in Maharashtra under the PM-KUSUM Scheme; the company accounted for approximately 15% of total installations in the state as of December 3, 2024.
Track record of profitable financial performance and rapidly increasing growth
As of October 1, 2024, the Order Book stood at ₹ 759.18 crore. Their revenue from operations increased from ₹70.442 crore in FY 2022 to ₹4,11.089 crore in FY 2024, representing a CAGR of 141.58%. Their revenue from operations increased from ₹175.983 crore in the six months ended September 30, 2023 to ₹4,21.929 crores in the six months ended September 30, 2024, an increase of 139.76%.
Decentralised infrastructure and a localised workforce enable operations across five states.
The company operates a decentralised infrastructure with 13 warehouses across three states and a localised workforce of 60 employees and 485 workmen as of November 30, 2024, enabling efficient operations across five states. Hiring and training locally, enhances the local economy through job creation, higher earnings, and skill development while improving operational efficiency. Flexible storage arrangements with third-party service providers in low-demand areas further streamline installation and after-sales services, reducing turnaround time and enhancing overall efficiency.
Risks of GK Energy Ltd IPO
- Customer Concentration Risk
The company derived 21.15%, 16.35%, 16.67%, 3.99%, and 14.25% of its revenue from its top customer during the six months ended September 30, 2024, and 2023, and in Fiscals 2024, 2023, and 2022, respectively. The loss of this customer or a significant decline in revenue from it, without an equivalent or greater increase from other sources, could materially impact its financial condition, operations, and cash flows.
- Geographic Market Risk
The company operates in Maharashtra, Chhattisgarh, Haryana, Uttar Pradesh, and Rajasthan. A sustained economic downturn in any of these states, particularly Maharashtra, could reduce demand for solar-powered pump systems, adversely impacting its business, financial condition, operations, and cash flows.
- Supplier Dependence
The company depends on a limited number of third-party suppliers for key components and materials. Any failure by a key supplier to meet commitments could materially impact its business, financial condition, operations, and cash flows.
All Financial Information about GK Energy Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | GK Energy Limited | Shakti Pumps (India) Limited |
|---|---|---|
Revenue from Operations for Fiscal 2024 (in ₹ crore) | 411.08 | 1374.30 |
P/E for FY 24 | NA | 64.81 |
Return on Net Worth for FY 24 in % | 64.49 | 18.75 |
EPS in ₹ for FY 24 | 2.14 | 11.79 |
IPO Registrar and Book Running Lead Manager
Link Intime India Private Limited is the registrar of the GK Energy Ltd IPO. The book-running lead managers are:
- IIFL Capital Services Limited (formerly known as IIFL Securities Limited)
- HDFC Bank Limited
Business Model
GK Energy Ltd primarily provides EPC services for solar-powered pump systems through direct-to-beneficiary sales and sales to other customers. Direct-to-beneficiary sales include (i) EPC of GK Energy brand solar-powered pump systems for farmers who select the company as a vendor on state government-appointed agency portals under the PM-KUSUM Scheme and similar state programs, and (ii) EPC of GK Energy brand solar dual water pump systems for local government bodies. Sales to others involve EPC of solar-powered pump systems under direct customer orders.
Company Growth Trajectory
Their revenue from operations increased from ₹70.442 crore in FY 2022 to ₹411.089 crores in FY 2024, representing a CAGR of 141.58%. Their revenue from operations increased from ₹175.983 crores in the six months ended September 30, 2023 to ₹421.92 crores in the six months ended September 30, 2024, an increase of 139.76%. Their operating EBITDA increased from ₹5.015 crores in FY 2022 to ₹53.823 crores in FY 2024, representing a CAGR of 227.61%. Their profit for the year increased from ₹1.557 crores in FY 2022 to ₹36.090 crores in FY 2024, representing a CAGR of 381.45%.
Market Position:
GK Energy are India’s largest pure play provider of engineering, procurement and commissioning (“EPC”) services for solar-powered agricultural water pump systems. As of October 1, 2024, they had an order book of ₹759.184 crores.
GK Energy Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 412.31 | 285.45 | 70.62 |
Profit Before Tax ( in ₹ crore) | 48.27 | 13.47 | 2.09 |
Profit After Tax (in ₹ crore) | 36.09 | 10.08 | 1.55 |
EBITDA (in ₹ crore) | 53.82 | 17.17 | 5.01 |
EPS (in ₹) | 2.14 | 0.66 | 0.12 |
GK Energy Ltd Cash Flow
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Net Cash Used in Operating Activities (in ₹ crore) | (10.38) | (15.50) | 0.57 |
Net Cash Used in Investing Activities (in ₹ crore) | (4.22) | (0.22) | (0.11) |
Net Cash Generated from Financing Activities (in ₹ crore) | 14.62 | 15.44 | (0.34) |
Cash and Cash Equivalent at the End of the Year (in ₹ crore) | 0.68 | 0.67 | 0.50 |
How to Check the Allotment Status of GK Energy Ltd?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of Link Intime Private Ltd. To check the status on the BSE website:
- Visit the BSE website.
- Click on “Investor Services” and choose “Application Status Check”.
- Choose the issue type — Equity or Debt.
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is GK Energy Ltd
- Enter your application number or PAN number.
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status.
To check status on the website of Link Intime Private Ltd:
- Visit the website of Link Intime Private Ltd.
- Choose ‘Public Issues’ from the Investor Services dropdown.
- Choose the name of the company from the ‘Select Company’ dropdown.
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC.
- Click on Submit to check the status.
How to Apply for GK Energy Ltd?
Here are the steps to apply for Energy Ltd IPO:
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
GK Energy Ltd IPO FAQs
What is the GK Energy Ltd?
The GK Energy Ltd IPO is a 100% book-built issue comprising a fresh offer and an offer-for-sale. The fresh issue size is pegged at ₹500 crores.
Is GK Energy Ltd IPO coming?
Yes, GK Energy Ltd is expected to come up with its IPO soon.
Who is the CEO of GK Energy Ltd?
Gopal Kabra is the CEO of GK Energy Ltd.
From where can I read more about the IPO of GK Energy Ltd?
You may read more about GK Energy Ltd and its IPO from the company’s draft red herring prospectus (DRHP) here.
