GK Energy shares make a decent market debut; stock lists at 12% premium

Amid the selling pressure, shares of GK Energy made a decent stock market debut on Friday, September 26 as the EPC player for solar powered pump solutions was listed at Rs 171 on NSE, a premium of 11.76 per cent over its issue price of Rs 153 apiece. Similarly, the stock kicked-off its maiden trading session with a premium of 7.84 per cent at Rs 165 on BSE.

Retail investors, who received a single lot of GK Energy made a profit of Rs 1,764 as of listing price on their investment of Rs 14,994. Similarly, HNI investors, who received 14 lots, consisting of 1,372 equity shares, made a profit of Rs 24,696 on their investment of Rs 2,09,916 as of listing price.

Listing of GK Energy has been in-line with expectations. Ahead of its debut, shares of GK Energy were commanding a grey market premium (GMP) of GK Energy of Rs 18-20 per share, suggesting 12-13 per cent listing pop for the investors. The GMP stood around Rs 25-30, when the issue ran for bidding.

The IPO of GK Energy ran for bidding between September 19 and September 23. It had offered its shares in the price band of Rs 145-153 per share with a lot size of 98 shares. It raised a total of Rs 464.26 crore from its IPO, which included a fresh share sale of Rs 400 crore and an offer-for-sale (OFS) of up to 42,00,000 equity shares.

The issue was overall subscribed a solid 89.62 times, fetching more than 22.02 lakh applications. The portion for qualified-institutional bidders (QIBs) was subscribed 186.29 times. The allocation for non-institutional investors (NIIs) was booked 122.73 times. The portions for retail investors and employees were subscribed 20.79 times.

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.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to it. IIFL Capital Services and HDFC Bank were the book running lead managers and MUFG Intime India served as the registrar of the issue.