GK Energy IPO subscribed 6.41 times by Day 2 with strong retail and NII demand. GMP at ₹22 indicates healthy listing gains. Read detailed analysis, subscription trends, and expert views.
GK Energy IPO Day 2 Update
The initial public offering (IPO) of GK Energy Limited has entered its second day with robust investor participation across categories. The ₹464.26 crore issue, which opened on September 19 and will close on September 23, continues to attract strong demand from retail as well as institutional investors.
By 5 pm on Day 2, the IPO was subscribed 6.41 times, receiving bids for over 14.22 crore shares against 2.12 crore shares on offer. The overwhelming response highlights growing investor confidence in the renewable energy sector, particularly in solar-powered solutions.
Subscription Status Breakdown
- Overall Subscription: 6.41x
- Retail Investors: 6.84x
- Non-Institutional Investors (NII): 10.05x
- Qualified Institutional Buyers (QIB): 2.90x
The sharp interest from NIIs and healthy participation from QIBs suggest a balanced demand profile, which often reflects positively during listing.
Grey Market Premium (GMP)
GK Energy IPO is also performing well in the grey market. The GMP stands at ₹22, which indicates that the stock could list near ₹175 per share. This is approximately 14.38% higher than the upper price band of ₹153, signaling potential listing gains for investors.
IPO Details
- Price Band: ₹145 – ₹153 per share
- Issue Size: ₹464.26 crore
- Fresh Issue: 2.61 crore shares (₹400 crore)
- Offer for Sale (OFS): 42 lakh shares (₹64.26 crore)
- Minimum Investment (Retail): 98 shares = ₹14,994 (at upper band)
- Allotment Date: September 24
- Listing Date: September 26 (NSE & BSE)
- Book Running Lead Manager: IIFL Capital Services Ltd.
- Registrar: MUFG Intime India Pvt. Ltd.
About GK Energy
Founded in 2008, GK Energy Limited specializes in EPC services for solar-powered agricultural water pump systems under the government’s PM-KUSUM scheme. The company offers farmers a complete package – from survey and design to installation, commissioning, and maintenance.
Operating on an asset-light model, GK Energy procures solar panels, pumps, and related components from specialized vendors and markets them under the “GK Energy” brand. With India pushing aggressively toward renewable energy, the company is well-positioned to capture future growth opportunities.
Financial Performance and Growth Plans
GK Energy has reported strong financial performance in recent years, with rising revenue and profit after tax (PAT) in FY2024. The company plans to utilize ₹322.5 crore from the fresh issue to meet long-term working capital needs, while the rest will go towards corporate purposes.
With a robust order book, GK Energy is betting on expanding its reach in India’s growing solar energy market.
Analyst Recommendations – Should You Apply?
Several brokerages have given a “Subscribe” rating to the GK Energy IPO:
- Angel One: Highlighted attractive valuations at a P/E of 23.3x, strong revenue growth, and promising sector outlook.
- Geojit Investments: Pointed out that the company is fairly valued compared to peers and is well-positioned for growth due to government-backed demand.
Both brokerages suggest that investors with a medium to long-term horizon can consider applying. For short-term investors, the healthy GMP indicates the possibility of decent listing gains.
Key Highlights
- IPO subscribed 6.41x on Day 2
- Retail subscription: 6.84x
- NII subscription: 10.05x
- GMP at ₹22, indicating 14.38% listing gain potential
- Strong sector tailwinds from PM-KUSUM and renewable push
- Analysts recommend Subscribe for both listing gains and long-term prospects
The GK Energy IPO has generated strong buzz among investors, thanks to its robust subscription figures and promising grey market performance. Backed by government initiatives and a growing renewable energy sector, the company is well-placed to expand its operations.
For investors, this IPO presents an opportunity for both short-term listing gains and long-term growth prospects. However, as always, one should assess personal risk appetite before making any investment decision.
Disclaimer: This article is for informational purposes only. The views expressed are based on analysts’ reports and market trends. Investors should consult their financial advisors or certified experts before making investment decisions.