GK Energy Lists At 12% Premium Over IPO Price

Shares of GK Energy Ltd. listed at a premium of 12% over IPO price on Friday. The scrip opened at Rs 171 on the NSE and Rs 165 on the BSE, compared to the issue price of Rs 153 per share.

The latest grey market premium for the GK Energy IPO was Rs 18 per share, indicating a listing price of Rs 171 apiece and a premium of 12%, as per Investorgain. 

The initial public offering of GK Energy was oversubscribed 89.62 times on the third and final day of bidding on Sept. 23. According to BSE data, the IPO received bids for 1,98,77,78,982 shares (Rs 30,413 crore) against 2,21,80,828 offered (Rs 464.26 crore).

The Qualified Institutional Buyers (QIBs) booked the issue 186.29 times. The Non-Institutional Investors’ (NIIs) category was subscribed 122.73 times. Retail investors booked their quota 20.79 times. 

The price band for the GK Energy IPO was set between Rs 145 and Rs 153 per share. It was a book build issue worth Rs 464.26 crore. It comprised a fresh issue of 2.61 crore shares worth Rs 400 crore and an offer-for-sale (OFS) of 42 lakh shares amounting to Rs 64.26 crore.

The proceeds from the fresh issue are primarily allocated to long-term working capital requirements of Rs 322.46 crore and the balance for general corporate purposes, to support its operational expansion and growth plans.

Maharashtra-based GK Energy offers an end-to-end single-source solution for the survey, design, supply, assembly, installation, testing, commissioning, and maintenance of solar-powered pump systems. It is India’s largest pure-play provider of engineering, procurement and commissioning services for solar-powered agricultural water pump systems, according to its offer documents.

The company has a robust order book in growing solar-powered pump system market and has an asset-light business model.

A key weakness is high dependence on government schemes like PM-KUSUM for revenue and reliance on third-party suppliers for key components.