GK Energy IPO Day 1 Highlights: Issue subscribed 2.57x so far. GMP hints 24% listing pop. Check subscription status

GK Energy IPO subscription status was 2.57 times on day 1. The retail portion was subscribed 2.70 times, and NII portion has been booked 2.61 times, Qualified Institutional Buyers (QIBs) portion received 2.32 bids.

The company has received bids for 5,70,79,120 shares against 2,21,80,828 shares on offer, at 17:00 IST, according to data on BSE.

The company had 90 employees as at March 31, 2025. GEL conducted EPC projects by engaging third-party installation and commissioning service providers. As at March 31, 2025, GEL’s third-party installation and commissioning service providers comprised 709 workmen, which enables us to operate across broad geographic areas in five states and soon six states.

The market size of the domestic solar-powered pump systems increased at a compound annual growth rate (CAGR) of 15% from ₹19.3 billion in Fiscal 2019 to approximately ₹39 billion in Fiscal 2024 and is forecast to reach ₹300-320 billion by Fiscal 2029, witnessing a significant CAGR of 52% between Fiscals 2024 and 2029. Close to 84% of the additions are expected to be under the PM-KUSUM Scheme components B and C.

The promoters of the company are Gopal Rajaram Kabra and Mehul Ajit Shah

The company operates across three business verticals: (i) EPC for solar-powered pump systems under PMKUSUM and state-level schemes, (ii) other EPC services including rural water supply projects under the Jal Jeevan Mission and rooftop solar installations, and (iii) trading of PV cells, solar modules, and allied products.

The company’s customer base includes farmers, local government bodies, state nodal agencies, and state implementing agencies under the PMKUSUM Scheme and similar state government programs. Its operations are concentrated in key agricultural states such as Maharashtra, Haryana, Rajasthan, Uttar Pradesh, Madhya Pradesh, and Chhattisgarh, where it is empanelled under various government schemes.

“GK Energy is well-positioned to capture this growth and replicate its success in Maharashtra across the high-potential states of Haryana, Rajasthan, Uttar Pradesh, and Madhya Pradesh. The company is also diversifying its revenue sources by installing rooftop solar systems and plans to backward integration by manufacturing its own solar panels. Investors can consider the IPO for long-term investment,” said Master Capital Services.

1. The leading pure play provider of the EPC of solar-powered pump systems in Maharashtra under the PM-KUSUM Scheme
2. Robust Order Book and a growing addressable market for solar-powered pump systems
3. Decentralised infrastructure and localised workforce enable to operate across broad geographic areas in five states
4. Track record of profitable financial performance and rapidly increasing growth
5. Well-positioned to seize opportunities in the rooftop solar market

1. Diversify sources of revenue by installing rooftop solar systems
2. Backward integrate by manufacturing own solar panels.
3. Development of a dedicated vendor ecosystem for various components of solar-powered pump and rooftop systems through organic and inorganic means
4. Exploring other solar market opportunities

As of 31 July 2025, GK Energy had successfully installed 97,098 solar pump systems across Maharashtra, Haryana, Rajasthan, Uttar Pradesh, Chhattisgarh, and Madhya Pradesh. It commands a 15% market share in Maharashtra under PM-KUSUM and has completed 62,559 systems nationwide under the scheme, representing a 7.4% share of total installations.

“At the upper price band of ₹153, GK Energy Ltd is attractively valued, trading at a post-IPO P/E of 23.3x lower than its industry peers. The company has demonstrated strong financial performance, with significant revenue and PAT growth in FY 2024. Its robust order book and presence in the growing renewable energy sector further support its growth prospects. Considering these factors, the stock merits a “Subscribe” recommendation,” said Angel One.

The Indian solar pump industry is expected to witness robust growth, driven by supportive government policies such as the PM-KUSUM scheme and various state-level solar initiatives. As of July 31, 2025, the five states of Maharashtra, Haryana, Rajasthan, Uttar Pradesh, and Madhya Pradesh accounted for 86% of approved solar pump systems, reflecting the strong concentration of opportunities in GK Energy’s core markets.

Negative cash flow from operations in the past - The company business requires its to have a significant amount of working capital, as the company need to pay for all of the materials and components for the company EPC services before the company receive payment for the company services. Payment terms under the PM-KUSUM Scheme are typically within 30 days of completion of a solar-powered pump system.

The company business, financial condition, results of operations and cash flows currently primarily depend on the number of solar-powered pump systems the company install for farmers who select its as their vendor under the PM-KUSUM Scheme. The company derived ₹9,177.52 million, ₹3,058.22 million and ₹2,537.23 million, equivalent to 83.83%, 74.39% and 89.02% of the company revenue from operations for Fiscals 2025, 2024 and 2023, respectively, from the installation of solar-powered pump systems - direct-to-beneficiary sales under the PM-KUSUM Scheme.

GK Energy IPO subscription status was 70% on day 1. The retail portion was subscribed 1.06 times, and NII portion has been booked 77%, Qualified Institutional Buyers (QIBs) portion received is yet to receive bids.

The company has received bids for 1,54,65,576 shares against 2,21,80,828 shares on offer, at 11:45 IST, according to data on BSE.

For Fiscals 2025, 2024 and 2023, the company derived ₹10,873.63 million, ₹3,743.68 million and ₹2,580.93 million, equivalent to 99.32%, 91.07% and 90.55%, respectively, of the company revenue from operations from the EPC of solar powered agricultural water pump systems on a turnkey basis. The company EPC for solar-powered pump systems business comprises direct-to-beneficiary sales and sales to others.

The company have a decentralized infrastructure, comprising 12 warehouses in three states as at August 30, 2025, and a localised workforce of 90 employees and 709 workmen as at March 31, 2025, which enable its to efficiently operate across broad geographic areas in five states.

The company has had a robust financial performance with revenue growing form 258 Cr to 1095 Cr from FY 23 to FY 25 with a CAGR of 96%, PAT has grown from 10 Cr in FY 23 to 133 Cr in FY25 with a CAGR of 264 %. The issue is fairly priced at 19 X PE and 12 XPB as compared to 28 X PE and 14 X PB average of listed players.

“The company also has orders in the solar rooftop EPC space. However, we have concerns with the negative cash flow from operations which are a result of increasing receivables and competition in the space. The company is raising funds for working capital as operating cash generation remains inadequate, despite strong revenue growth and improved margins. We recommend SUBSCRIBE the issue for long term gains for investors with high-risk appetite,” said Canara Bank Securities.

As at August 15, 2025, the company had an Order Book of ₹10,289.64 million consisting of an SPPS Order Book of ₹10,088.81 million and orders for rooftop solar systems of ₹200.83 million.

GK Energy IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Tentatively, GK Energy IPO basis of allotment of shares will be finalised on Wednesday, September 24, and the company will initiate refunds on Thursday, September 25, while the shares will be credited to the demat account of allottees on the same day following refund. GK Energy share price is likely to be listed on BSE and NSE on Friday, September 26.

GK Energy announced on Thursday that it has raised more than ₹139 crore from anchor investors, just one day prior to the launch of its initial public offering.

Among the institutions involved in the anchor round were HSBC Mutual Fund, Citigroup Global Markets Mauritius, Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Pinebridge Global Funds, and Societe Generale, as indicated in a notice posted on the BSE website.

The company has issued 91.03 lakh equity shares to 13 funds at a price of ₹153 each, bringing the total transaction amount to ₹139.27 crore, it stated.

GK Energy IPO GMP today is ₹36. This indicates GK Energy share price were trading at a premium of ₹36 in the grey market on Friday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of GK Energy share price was indicated at ₹189 apiece, which is 23.53% higher than the IPO price of ₹153.

Based on the grey market activities from the last five sessions, today the IPO GMP is showing an upward trend and is anticipated to list strongly. The minimum GMP recorded is ₹0.00, whereas the maximum GMP is ₹45, as per experts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.