GK Energy Set For Rs 464-Crore IPO: How Is The Solar-Powered Pump Provider Banking On 'Thirst'?

GK Energy Ltd, one of India's largest pure-play providers of solar-powered agricultural pumps under the government PM-Kusum scheme, is gearing up for its Rs 464 crore initial public offer.

Speaking to NDTV Profit, chairman and CEO, Gopal Kabra says that the company is betting big on the 'thirst' for irrigation solutions even as its order order book remains heavily concentrated in Maharashtra.

"We have 11 crore farmers in the country, out of which only three crore farmers have a proper source of water pumping; the remaining farmers are an addressable market," he said.

“When distribution companies see solar agri pumps, they see the most suitable and affordable option to drive food security and carbon neutrality," he added.

GK Energy has an order book of Rs 759 crore, 99.8% of which is tied to Maharashtra through the PM-Kusum scheme. This kind of concentration poses potential risks for GK Energy, even though the management highlighted the government's focus on Maharashtra when it comes to solar power.

"Almost half of PM-Kusum funds go to Maharashtra. So this kind of concentration can be seen across peers," Kabra said.

Maharashtra has also rolled out the Magel Tyala Saur Krushi Pump Yojana, aims to provide 10 lakh agriculture solar pumps for new connections to the farmers in the next five years, thus adding to the potential pipeline.

Kabra acknowledges the concentration in Maharashtra but vows to replicate the success in the state in other parts of the country. “Our success in Maharashtra gives us a strong base. The plan is to replicate that in other high-potential states," he said.

GK Energy IPO opens Sept. 19 at a price band of ₹145–153 per share and closes Sept. 23. It includes a fresh issue of ₹400 crore and an offer for sale of ₹64 crore by promoters. The company has already raised ₹100 crore from anchor investors including Valuequest and Kotak AIF.