GK Energy IPO opens for bidding today: Should you subscribe to it?

The initial public offering (IPO) of GK Energy shall open for bidding on Friday, Tuesday 19. The company shall be offering its shares in the range of Rs 145-153 apiece. Investors can apply for a minimum of 98 equity shares and its multiples thereafter. The issue will close for bidding on Tuesday, September 23.

GK Energy is looking to raise a total of Rs 464.26 crore via IPO, which includes a fresh share sale of Rs 400 crore and an offer-for-sale (OFS) of up to 42 lakh equity shares worth Rs 64.26 crore. The net proceeds from the issue shall be utilized towards funding its long term working capital requirements and general corporate purposes.

Incorporated in 2008, Pune-based GK Energy provides engineering, procurement and commissioning (EPC) services for solar-powered agricultural water pump systems under Component B of the Central Government’s PM-KUSUM Scheme” as measured by the number of solar-powered pump systems installed under the Scheme in the period from January 1, 2022 to July 31, 2025.

GK Energy has raised a total of Rs 139.27 crore from anchor investors as it allocated 91.03 lakh equity shares at Rs 153 apiece. Its anchor book included names like Pinebridge Global Funds, 360ONe, HSBC, 3P India Equity Fund, Motilal Oswal, Bandhan Mutual Fund, VQ Fastercap Fund, Citigroup Global Markets, Societe Generale ODI, AAA INdia Equity Fund and more.

For the financial year ended on March 31, 2025, GK Energy reported a net profit of Rs 133.21 crore with a revenue from operations of Rs 1,094.83 crore. The company clocked a net profit of Rs 36.1 crore with a revenue of Rs 411.09 crore for the financial year 2023-24. At current valuations, the company commands a market capitalization of Rs 3,103 crore.

GK Energy has reserved 50 per cent shares for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) have 15 per cent for the allocation. Retail investors will have 35 per cent of allocation in the IPO. Last heard, the company was commanding a grey market premium of Rs 40 apiece, suggesting a 26 per cent upside for the investors.

IIFL Capital Services and HDFC Bank is the book running lead manager and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed at the bourses on Friday, September 26, 2025. Here's what a host of brokerage firms have to say about the IPO of GK Energy:
 

SBI Securities
Rating: Subscribe
Between FY22-FY25, Revenue/Ebitda/PAT grew at a CAGR of 96 per cent/241 per cent/263 per cent to Rs 1095 crore/ Rs 200 crore/Rs 133 crore, respectively. The 3-fold margin expansion was supported by higher volume and operational efficiency. The growth outlook is positive as the SSPS market is likely to grow 8 times between FY24-29 to Rs 30,000-32,000 crore, said SBI Securities.

"The issue is fairly priced on most valuation parameters with superior margin and return ratios. We recommend investors to 'subscribe' the IPO at the Cut-Off price for a long-term investment horizon. However, investors need to be aware of the fact that the business is subject to significant regulatory risk coupled with significant exposure to the state of Maharashtra," it added.
 

Canara Bank Securities
Rating: Subscribe
GK Energy is well poised for growth as it has become one of the key players in solar EPC space. 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, said Canara Bank Securities.

"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," it added.
 

BP Equities
Rating: Subscribe
The issue of GK Energy is priced at a P/E of 19.5 times on the upper price band, which is comparatively less than its peers, said BP Equities. "Given its leadership position, strong business model, improving financials, and long growth runway, the IPO offers attractive medium to long-term potential. We, therefore, assign the issue a 'subscribe' rating from a long-term perspective."
 

SMIFS
Rating: Subscribe
"We recommend subscribing to the issue, backed by GK Energy’s strong order book under PM-KUSUM, leadership in Maharashtra with expanding pan-India presence, upcoming 1 GW panel manufacturing capacity by September 2026, and diversification into rooftop solar systems, providing a good long term opportunity in India’s fast growing renewable energy sector," said SMIFS.
 

Ventura Securities
Rating: Subscribe
"GK Energy currently operates an asset-light business model. It sources solar panels, pumps and various other components of solar-powered pump systems under the 'GK Energy' brand from different specialized vendors. It is a leading EPC provider for solar-powered agricultural pumps in India," said Ventura Securities, with a subscribe rating.