GK Energy IPO GMP In Focus Ahead Of Final Day Of Subscription; Check Allotment Date And More

GK Energy Ltd.’s initial public offering (IPO), which opened on September 19, is scheduled to close on Tuesday, September 23. The Maharashtra-based company provides engineering, procurement and commissioning (EPC) services for solar-powered agricultural water pump systems under Component B of the Central Government’s Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) scheme.

According to the BSE data, the issue was oversubscribed 6.41 times, receiving bids for 14,22,47,882 shares against 2,21,80,828 shares on offer. The Non-Institutional Investors (NIIs) segment was oversubscribed 10.05 times, retail investors 6.84 times and Qualified Institutional Buyers (QIBs) 2.90 times.

With just a day left before the subscription closes, the grey market premium (GMP) for the GK Energy IPO is in focus today. According to the current trends, the GMP for the mainboard issue has declined slightly since the IPO opened for subscription on September 19.

The grey market premium (GMP) of the GK Energy IPO was Rs 20 as of 9:00 a.m. on September 23. Considering the upper end of the IPO’s price band of Rs 153, the estimated listing price is Rs 173 (base price plus the latest GMP), indicating a gain of around 13.07% per share.

This means the unlisted shares of GK Energy were trading at Rs 173 on the private market. Investors can expect an approximate gain of around 13% when the shares list on the BSE and NSE this week.

The GMP for the mainboard issue was Rs 25 when it opened for subscription on Friday. It declined further to Rs Rs 20 on Monday. The highest GMP recorded for the IPO was Rs 36, a day before the IPO opened for subscription.

Note: GMP does not represent official data and is based on speculation. GMP data sourced from InvestorGain.

GK Energy IPO is a book-built issue of Rs 464.26 crore. It comprises a fresh issue of 2.61 crore shares raising Rs 400 crore and an offer-for-sale component of 42 lakh shares amounting to Rs 64.26 crore.

The price band for the GK Energy IPO is set from Rs 145 to Rs 153 per share. The application lot size is 98 shares. Retail investors need a minimum investment of Rs 14,994 for one lot. For sNII, the lot size is 14 (1,372 shares), totalling Rs 2,09,916, while for bNII, it is 67 lots, or 6,566 shares, amounting to Rs 10,04,598.

IIFL Capital Services Ltd. is serving as the book running lead manager for the IPO, while MUFG Intime India Pvt. Ltd. is the registrar for the issue.

After the bidding period for the IPO closes on September 23, the allotment for GK Energy IPO is scheduled for September 24. Refunds to unsuccessful applicants will be initiated on Thursday, September 25. On the same day, shares are expected to be credited to successful investors’ demat accounts.

The GK Energy IPO is tentatively scheduled to list on the BSE and NSE on Friday, September 26.

Founded in 2008, GK Energy Ltd. delivers end-to-end solutions for solar-powered agricultural pump systems. The company handles everything from site survey and design to installation, testing and maintenance. It operates 12 warehouses across three states and employs a workforce of 90 staff meGK Energy Ltd. Business And Financials.

GK Energy Ltd. intends to use the proceeds from its IPO for two purposes. One includes meeting its long-term working capital requirements. A portion of the funds will also be allocated for general corporate purposes.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.