The IPO is a book-built issue, with a price band set at Rs 145–153 per share. The issue comprises a fresh issue of Rs 400 crore and an offer for sale of Rs 64.26 crore. Shares will be listed on both the NSE and BSE, with the tentative listing date fixed for September 26.
For retail investors, the minimum bid is 98 shares, requiring an investment of Rs 14,994 at the upper end of the band. High net-worth investors (HNI) must apply for at least 14 lots.
Strong growth and market positioning
GK Energy has carved a strong presence in the solar EPC space, particularly in agricultural pumps. Between January 2022 and July 2025, the company installed 62,559 pumps, commanding a 7.37% market share across five key states — Maharashtra, Haryana, Rajasthan, Uttar Pradesh, and Madhya Pradesh.
The company reported healthy growth over the years, with revenues rising from Rs 285 crore in FY23 to Rs 1,095 crore in FY25 — a CAGR of 96%. Profits jumped even faster, from Rs 10 crore in FY23 to Rs 133 crore in FY25 (CAGR of 264%).
Margins also improved sharply, with EBITDA margin at 18.2% in FY25 compared to just 6% in FY23.
While the company has established itself as a key player in solar-powered agricultural pump systems, it remains heavily dependent on government-driven PM-Kusum subsidies, which are scheduled to end in March 2026.
Brokerage view: High risk, long-term subscribe
Analysts highlight that the issue is fairly priced at 19x P/E and 12x P/B, compared with 28x P/E and 14x P/B for listed peers. They see GK Energy well-poised to capture the structural growth in solar EPC, backed by its robust Rs 1,028 crore order book as of mid-August.
However, concerns remain over negative cash flows from operations due to rising receivables and the company’s reliance on government subsidy schemes. Canara Bank Securities has recommended a “Subscribe for long-term gains” stance, but only for investors with a high-risk appetite.
With a healthy GMP of 26% indicating strong listing interest, the IPO is expected to see solid demand across categories, though sustainability of growth will depend on policy continuity and diversification beyond PM-Kusum.
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