GK Energy IPO: GMP, Price Band, Lot Size, Important Dates And More

The initial public offering (IPO) of GK Energy Ltd. is set to open on Friday, September 19. The company aims to raise Rs 464.26 crore from the primary market through its public offering.

Ahead of launch, here’s a look at GK Energy IPO grey market premium (GMP), price band, offer size, lot size and other key details.

The GMP (grey market premium) for the GK Energy IPO stood at Rs 45 per share as of 10:30 a.m. on September 18. The latest GMP indicates an estimated listing price of Rs 198 per share at a premium of 29.41% over the upper limit of the IPO price band.

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

GK Energy IPO is a book-building issue worth Rs 464.26 crore. The mainboard IPO comprises a fresh issue of 2.61 crore equity shares, aggregating to Rs 400 crore, and an offer-for-sale (OFS) of 42 lakh shares, amounting to Rs 64.26 crore.

The price band for the IPO has been fixed between Rs 145 and Rs 153 per share.

Retail investors can apply for a minimum of one lot, which consists of 98 shares, amounting to an investment of Rs 14,994 at the upper limit of the price band. For small non-institutional investors (sNII), the minimum application size is 14 lots, or 1,372 shares, amounting to Rs 2,09,916. Big NIIs (bNII) are required to apply for at least 67 lots, or 6,566 shares, amounting to Rs 10,04,598.

IIFL Capital Services Ltd. is acting as the book-running lead manager for the IPO, while MUFG Intime India Pvt. has been appointed as the registrar to the issue.

GK Energy IPO will remain open for subscription from September 19 to September 23. The IPO share allotment status is expected to be finalised on September24. Refunds to unsuccessful applications will be initiated on Thursday, September 25. The company will also transfer shares to the demat accounts of allottees the same day.

The tentative listing date for GK Energy IPO has been fixed as Friday, September 26. Shares of the company will be listed on the NSE and BSE.

The company plans to use the IPO proceeds for funding long-term working capital requirements, with an allocation of Rs 322.46 crore. A portion of the funds will also be utilised for general corporate purposes to support overall business growth.

GK Energy Ltd., established in 2008, provides engineering, procurement, and commissioning (EPC) services focused on solar-powered agricultural pump systems. The company operates primarily under the Central government’s Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) Scheme.

For the period ended March 31, 2024, the company reported a 44% YoY increase in total income at Rs 412.31 crore, up from Rs 285.45 crore in the preceding financial year. Its profit after tax rose significantly to Rs 36.09 crore, compared to Rs 10.08 crore in the previous fiscal. Ebitda also more than tripled, reaching Rs 53.83 crore in FY24 from Rs 17.18 crore in FY23. 

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.