GK Energy announces dates, price band for IPO opening later this week. Check details – News Air Insight

Pune-based GK Energy, an engineering, procurement, and construction (EPC) player in renewable energy, has filed its red herring prospectus to raise funds from the public markets. The company will launch its IPO on September 19, with subscriptions open until September 23.

The offering includes a fresh issue of equity shares worth up to Rs 400 crore and an offer for sale of Rs 64 crore by promoters. Shares are priced at Rs 145–153 each.

Business Overview

GK Energy is primarily a pure-play EPC provider of solar-powered agricultural water pump systems. Its business includes direct-to-beneficiary sales as well as sales to other customers.

Direct-to-beneficiary sales involve EPC of GK Energy-branded solar-powered pump systems to farmers who select the company as a vendor through portals managed by state nodal agencies (SNAs) or state implementing agencies (SIAs) under the government’s PM-KUSUM Scheme and similar state schemes.

The company also supplies solar dual water pump systems (solar-powered pumps with water storage) to local government bodies. Sales to other customers comprise EPC projects executed under orders placed directly with the company.

Objects of the Issue

According to the prospectus, net proceeds from the IPO will primarily fund long-term working capital requirements, estimated at Rs 322 crore. A portion will also be allocated for general corporate purposes.

Industry Overview

GK Energy operates in India’s fast-growing solar energy sector, benefiting from strong government support, rising clean energy demand, and state-level schemes subsidizing solar adoption. Key risks include policy changes, import competition from Southeast Asia, and price volatility in upstream components such as polysilicon.

Financial Performance

The company’s revenues grew sharply from Rs 285 crore in FY23 to Rs 1,095 crore in FY25, a CAGR of 96%. EBITDA surged from Rs 17 crore to nearly Rs 200 crore during the same period. Its order book for solar-powered pump system (SPPS) projects stood at over Rs 1,000 crore as of August 2025. As of March 2025, consolidated assets were Rs 583 crore, with equity capital of Rs 34 crore and borrowings of Rs 217 crore.

The prospectus flags risks such as heavy dependence on government schemes, seasonal business cycles, and reliance on top customers. On the positive side, the company benefits from strong empanelment under central and state solar programs, a robust order book, and significant growth in revenues and profitability.