For investors, it can be quite challenging to decide if the GK Energy IPO is a good investment or not. If you are unsure and still thinking about whether to apply or skip this IPO, don’t worry. In this article, we present the top key factors and a detailed review of the GK Energy IPO. This will help you analyze the strengths, risks, and financial details of the GK Energy IPO, making your investment decision better.
About Company
GK Energy Limited, founded in 2008, is one of the leading engineering, procurement, and commissioning (“EPC”) services for solar-powered agricultural water pump systems under Component B of the Central Government’s PM-KUSUM Scheme. Between January 1, 2022, and July 31, 2025, the company is one of the growing players in the number of solar pump systems installed under this scheme.
GK Energy is known to provide farmers with a one-stop solution for survey, design, supply, installation, testing, commissioning, and maintenance of solar-powered pump systems. Under the GK Energy brand, the company follows an asset-light model, purchasing solar panels, pumps, and other components for its solar-powered pump systems. As of August 30, 2025, the company has 12 warehouses in 3 states. With 90 employees and 709 workmen, it enables efficient operations in five states.
Strengths
- Under the PM-KUSUM Scheme, GK Energy is one of the prominent EPC providers of solar-powered pump systems in Maharashtra, with its operations also in Haryana, Rajasthan, Uttar Pradesh, Chhattisgarh, and Madhya Pradesh.
- Over the years, the company benefited from strong long-term customer relationships via a large distribution network.
- The company has shown a strong track record in financial performance.
- GK Energy offers an end-to-end support for farmers, including installation to after-sales service, offering them a smooth experience and higher satisfaction.
Weaknesses
- In FY25, FY24, and FY23, the company generated most of its revenue from EPC services for solar-powered agricultural water pump systems, which means any drop in demand for these services can negatively impact the overall business and cash flow.
- In FY25, FY24, and FY23, GK Energy has experienced negative cash flow and might continue to face it more in the future.
- The company mainly runs its business via third-party suppliers for its components and materials. If the third-party suppliers fail to deliver, then it can badly affect the company’s financials, cash flow, and overall business.
- Any sudden increase in the price of the key components and raw materials can negatively impact the business, financial condition, and cash flows.
GK Energy IPO Review
| Reviewer | Recommendations |
| IPO Watch | May Apply |
| Canara Bank | Apply |
| Capital Market | Neutral |
| DRChoksey FinServ | |
| Emkay Global | |
| Hem Securities | |
| IDBI Capital | |
| Marwadi Shares | |
| Nirmal Bang | |
| SBICAP Securities | |
| Sharekhan | |
| SMC Global | |
| Sushil Finance | |
| Swastika Investmart | |
| Ventura Securities | |
| Geojit | |
| Reliance Securities | |
| BP Wealth | |
| ICICIdirect | |
| Choice Broking |
GK Energy IPO Details
| IPO Open Date: | September 19, 2025 |
| IPO Close Date: | September 23, 2025 |
| Face Value: | ₹2 Per Equity Share |
| IPO Price Band: | ₹145 to ₹153 Per Share |
| Issue Size: | ₹464.26 Crores |
| Fresh Issue | ₹400 Crores |
| Offer-for-Sale | Up to 42,00,000 equity shares |
| Registrar | MUFG Intime India Pvt.Ltd. |
| IPO Lead Managers | IIFL Capital Services Ltd.HDFC Bank Ltd. |
| Basis of Allotment | September 24, 2025 |
| IPO Listing Date: | September 26, 2025 |
| Listing | BSE, NSE |
Financial Performance Trend Details
| Particulars | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Revenue from Operations | 1,099.18 crores | 412.31 crores | 285.45 crores |
| EBITDA | 199.69 crores | 53.83 crores | 17.18 crores |
| EBITDA Margin (%) | 18.24% | 13.09% | 6.03% |
| Profit after Tax (PAT) | 133.21 crores | 36.09 crores | 10.08 crores |
| Net Worth | 209.09 | 55.96 | 19.87 |
| Return on Capital Employed | 55.65% | 50.10% | 29.36% |
| Total Borrowings | 217.79 Crores | 62.29 Crores | 42.61 Crores |
Peer Comparison with the Company
| Name of the Company | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹) |
| GK Energy Limited | ₹2 | [●] | ₹7.86 | 63.71% | ₹12.35 |
| Shakti Pumps (India) Limited | ₹10 | 24.11x | ₹33.97 | 35.20% | ₹96.59 |
| Oswal Pumps Limited | ₹1 | 29.00x | ₹28.21 | 93.00% | ₹44.56 |
Promoters & Track Records, if any
- Gopal Rajaram Kabra, aged 40 years, is one of the promoters, Chairman, Managing Director, and Chief Executive Officer of the Company. He holds 158,494,540 shares, representing 89.71% of the paid-up Equity Share capital.
- Mehul Ajit Shah, aged 38 years, is the promoter, Chief Operating Officer, and is also a Whole-time Director of the Company, and holds 6,300,000 shares, representing 3.57% of the shares in the company.
Information on Industry’s P/E Ratio
The company GK Energy IPO did not show the P/E ratio in the RHP. However, let’s check out the renewable energy / solar sector industry’s P/E ratio to understand it more.
Oswal Pumps Limited has the highest P/E ratio of 29.00 with a face value of ₹1 per share, while Shakti Pumps (India) Limited has the lowest P/E ratio of 24.11 with a face value of ₹10 per share. The industry average P/E ratio stands at 26.56.
Object of the IPO
- The proceeds raised from the fresh issue will be utilized for the funding of long-term working capital requirements.
- Lastly, the remaining funds will be used for the company’s general corporate purposes.
GK Energy IPO – Should You Apply or Not?
GK Energy comes with a robust order book, profitable financial performance, strong growth story, and leadership in solar-powered agricultural pump EPC projects under the PM-KUSUM scheme. However, failure to generate enough cash flow, a highly competitive industry, dependence on schemes, and policy changes are some issues.
As of September 18, 2025, the Grey Market Premium of the GK Energy IPO is ₹46, while the price band of the company is ₹153, indicating a potential gain of around 30% to 32%.
The positive GMP and attractive financial performance make this IPO a good choice for investors who are looking for long-term listing gains. Cautious Investors may choose to apply for this IPO for short-term listing gains after evaluating the Grey Market Premium trends (GMP) and market sentiment and demand.
Please note:
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the company’s RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
