Listing-bound GK Energy raises Rs 100 crore in pre-IPO round; check details

GK Energy, a prominent name in the engineering, procurement, and commissioning (EPC) sector for solar-powered agricultural water pump systems, has successfully raised approximately Rs 100 crore in pre-IPO funding. This was achieved through the private placement of 65,35,947 equity shares at Rs 153 per share, forming 3.70% of the company's pre-offer equity share capital. The funds were raised with the participation of Valuequest, 360 One (formerly IIFL Wealth), and Kotak AIF.

Breaking down the investment, Valuequest India G.I.F.T. Fund secured 22,87,582 shares, amounting to Rs 35 crore. Additionally, VQ FasterCap Fund II acquired 19,60,784 shares for Rs 30 crore. 360 One High Growth Companies Fund was allotted 9,80,392 shares, equivalent to Rs 15 crore, while 360 One Equity Opportunities Fund – Series 4 received 6,53,595 shares for Rs 10 crore. Kotak Iconic Fund and Kotak Iconic Fund II each received 3,26,797 shares, totalling Rs 5 crore each.

GK Energy is preparing for an initial public offering (IPO) which includes a fresh issue of up to Rs 500 crore and an offer for sale of up to 84,00,000 equity shares by promoter selling shareholders. The company's shares have a face value of Rs 2 per equity share as it aims to broaden its investor base and enhance its market presence.

The company stands as India's largest pure play provider in its sector, a distinction measured by its significant number of solar-powered pump systems installed under the Central Government’s Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) scheme. The comprehensive service includes engineering, procurement, and commissioning of these solar-powered systems.

As the IPO approaches, investors and stakeholders will be closely watching the proceedings. The infusion of funds from these key investors is seen as a vote of confidence in the company's growth trajectory and its strategic role in India's renewable energy landscape.

Industry experts note that GK Energy's strategic alignment with the PM-KUSUM scheme positions it favourably for future growth, especially considering the increasing focus on renewable energy solutions in Indian agriculture. The pre-IPO funding round has set a robust foundation for its upcoming public offering.