The price band for the GK Energy IPO has been fixed between Rs 145 to Rs 153 per equity share. 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.
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Angel One Report
Maharashtra-based GK Energy Ltd.'s initial public offering is set to open on Friday, September 19 and the offer concludes on Sep. 23. The shares will be listed on both the National Stock Exchange and the BSE on Sep 26 .
GK Energy is raising approximately Rs 464.26 crore through its IPO, comprising a fresh issue of Rs 400 crore and an offer for sale of Rs 64.26 crore, with proceeds 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.
The price band for the GK Energy IPO has been fixed between Rs 145 to Rs 153 per equity share. 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 PAT growth in FY 2024. 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.
Company Outlook
In FY 2024–25, GK Energy delivered robust financial performance, reporting revenue of Rs 1,094.8 crore, Ebitda of Rs 199.7 crore (18.2% margin), PAT of Rs 133.2 crore (12.1% margin), RoE of 63.7%, RoCE of 55.7%, and a debt-to-equity ratio of 0.74, underscoring strong growth, healthy profitability, and operational efficiency.
Key Risks
The key risks for GK Energy Ltd include high customer and geographic concentration and seasonal business fluctuations can impact revenue, profitability, and cash flows.
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