The GK Energy IPO is now open for bidding, and the IPO bidding window will close on September 23. The grey market premium for the IPO is now around the 20% mark on Day 1. However, this is significantly below the earlier highs. It had risen as much as 30% before the issue opened.
The IPO was fully subscribed on day 01 itself. The retail portion was booked 1.62 times, NIIs subscribed to it 1.20 times, and QIBs are yet to jump in.
The issue is priced between Rs 145 and Rs 153 per equity share and is set to mop up Rs 464.26 crore. It has been termed as priced attractively by analysts. But what’s the big worry for the investors now, and why is the GMP on a downward trajectory?
Here are 6 important factors to watch out for –
GK Energy IPO: Expert’s take
Angel One believes that the valuations are attractive and the order book supports the company’s IPO pricing. “At the upper price band of Rs 153, GK Energy 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 net profit growth in FY24. 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.”
GK Energy IPO: Issue size
The issue is a mix of 2.61 crore fresh shares aggregating to Rs 400 crore and an offer for sale of 0.42 crore shares, summing up to Rs 64.26 crore. After the IPO, the promoter shareholding will drop to 78.64% from 93.29%.
GK Energy IPO: Allotment and listing
The allotment of shares for the GK Energy IPO is anticipated to be completed on September 24, with the listing on the BSE and NSE expected to occur on September 26, according to a provisional schedule.
GK Energy IPO: Lot size
A retail buyer must apply for at least 98 shares in a single lot, which is valued at Rs 14,994. For small NIIs, the investment in lot sizes involves 14 lots of 1,372 shares, totalling Rs 2 lakh, whereas for large NIIs, it consists of 67 lots of 6,566 shares, amounting to Rs 10 lakh.
GK Energy IPO: BRLM and registrar
IIFL Capital Services is the book-running lead manager for the IPO, and MUFG Intime India is working as the registrar of the issue.
About GK Energy
GK Energy specialises in delivering engineering, procurement, and commissioning (EPC) services for solar-powered agricultural water pumping systems as part of Component B of the Central Government’s Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan scheme (PM-KUSUM Yojna). This is evaluated based on the number of solar-powered pumping systems set up under the PM-KUSUM Scheme from January 1, 2022, to July 31, 2025.
The company offer farmers an end-to-end single-source solution for the survey, design, supply, assembly, installation, testing, commissioning and maintenance of solar-powered pump systems.