GK Energy Ltd is launching its Initial Public Offering (IPO) to raise capital primarily for funding long-term working capital requirements. The IPO comprises a fresh issue of 2.61 crore shares worth Rs. 400 crore and an offer for sale of 0.42 crore shares worth Rs. 64.26 crore, bringing the total issue size to Rs. 464.26 crore.
The GK Energy Ltd IPO opens on September 19, 2025, and closes on September 23, 2025, with shares set to be listed on NSE and BSE on Friday, September 26, 2025. Here’s a complete overview of the issue.
GK Energy’s IPO is priced between Rs. 145 and Rs. 153 per share with a lot size of 98 shares. Retail investment is Rs. 14,994 (98 shares at the upper price). For sNII, the investment is 14 lots (1,372 shares) totaling Rs. 2,09,916, and for bNII, 67 lots (6,566 shares) totaling Rs. 10,04,598.
GMP of GK Energy IPO
As of September 18, 2025, the shares of GK Energy Limited in the grey market were trading at a 29.41 percent premium. The shares in the Grey Market traded at Rs. 198. This gives it a premium of Rs. 45 per share over the cap price of Rs. 153.
Overview of GK Energy Limited
Incorporated in 2008, GK Energy Limited specializes in providing comprehensive engineering, procurement, and commissioning (EPC) services for solar-powered agricultural water pump systems under Component B of the Central Government’s PM-KUSUM Scheme. The company offers farmers a complete, single-source solution covering survey, design, supply, assembly, installation, testing, commissioning, and maintenance of solar-powered pumps.
Operating an asset-light business model, GK Energy sources solar panels, pumps, and other components from specialized vendors under its own brand. As of August 30, 2025, the company manages 12 leased warehouses across three states and As of March 31, 2025 employs a workforce of 90, reflecting its focused operational and scalable business approach.
As of August 15, 2025, GK Energy had a total order book of approximately Rs. 1,029 crore, comprising Rs. 1,009 crore from solar-powered pump systems and Rs. 20.8 crore from rooftop solar projects.
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Promoters of GK Energy Limited
The promoters of GK Energy Limited are Gopal Rajaram Kabra and Mehul Ajit Shah, who play a key role in guiding the company’s strategic direction and overseeing its operations in the solar energy sector. Their leadership has been instrumental in establishing GK Energy’s presence in the solar-powered agricultural pump market.
GK Energy Limited Selling Shareholders
The GK Energy Limited IPO includes a notable Offer for Sale by its promoters, with Gopal Rajaram Kabra offering 40 lakh shares and Mehul Ajit Shah offering 2 lakh shares.
Lead Managers of GK Energy Limited IPO
IIFL Capital Services Limited and HDFC Bank Limited are the book-running lead managers for the IPO. MUFG Intime India Private Limited is the registrar handling the offer process.
Objectives of the IPO Offer
GK Energy Limited plans to use the net proceeds from its IPO for two primary purposes. Approximately Rs. 322.45 crore will be allocated to meet long-term working capital requirements, while the remaining funds will support strategic initiatives, growth and expansion opportunities, brand building, contingencies, and other routine business needs as applicable.
Financial Analysis of GK Energy Limited
GK Energy Limited’s revenue has increased from Rs. 411.09 crore in FY24 to Rs. 1099.18 crore in FY25, which represents a growth of 167.38 percent. The net profit has increased by 269.10 percent, from Rs. 36.09 crore in FY24 to Rs. 133.21 crore in FY25.
The basic earnings per share increased by 267.29 percent and stood at Rs. 7.86 in FY25 as against Rs. 2.14 recorded in FY24.
In terms of return ratios, the company reports a Return on Capital Employed (ROCE) of 55.65 percent and a Return on Net Worth (RoNW) of 63.71 percent. The company has a debt-to-equity ratio of 0.74x.
GK Energy Limited Vs Peers
GK Energy Limited reported an EPS of Rs. 7.86 and a RoNW of 63.71 percent. In comparison, Shakti Pumps (India) Limited’s EPS of Rs. 33.97 and its RoNW of 35.20 percent. Oswal Pumps Limited reported Rs. 28.21 EPS, and a RoNW of 93 percent.
GK Energy Limited’s net asset value per share is Rs. 12.35, compared to Rs. 96.59 for Shakti Pumps (India) Limited and Rs. 44.56 for Oswal Pumps Limited.
Strengths of GK Energy Limited
- Leading EPC provider of solar-powered pump systems under the PM-KUSUM Scheme in Maharashtra (as of July 31, 2025), with operations in Haryana, Rajasthan, Uttar Pradesh, Chhattisgarh, and Madhya Pradesh.
- The company has a robust order book and a growing addressable market for solar-powered pump systems.
- The company offers complete support from installation to after-sales, boosting farmer satisfaction and word-of-mouth publicity.
- Decentralized infrastructure and a local workforce allow the company to operate across five states.
- The company has a track record of profitable growth and a senior management team with strong sector expertise.
Weaknesses of GK Energy Limited
- Over 90 percent of the company’s revenue comes from EPC of solar-powered agricultural pumps. So, a decline in EPC demand could materially impact its business and financials.
- If the company fails to collect payments from customers, it could impact its cash flow and overall financial health.
- The company had negative operating cash flow in FY23–25 and may need ongoing working capital support; without it, business and growth could be affected.
- If the company takes on more debt to meet , higher repayment and interest costs could weaken its earnings and strain cash flow.
- The company depends on a few key suppliers, and any failure on their part could seriously affect its business and cash flow.
Conclusion
GK Energy Limited, a leading EPC provider of solar-powered pump systems, has shown strong growth with robust return ratios and a solid order book. However, its heavy dependence on the PM-KUSUM Scheme, negative cash flows, and supplier reliance pose risks. The IPO offers long-term potential, but investors should weigh these challenges before investing.
Written By Akshay Sanghavi
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