IPO Details
- IPO Opening Date: Sep 19, 2025
- IPO Closing Date: Sep 23, 2025
- IPO Size: Rs. 464.26 Crore. From this Fresh Issue: Rs. 400 Crore; Offer For Sale (OFS): Rs. 64.26 Crore
- IPO Price: Rs. 145 – 153 per share
- Lot Size: 98 shares
- Investor Allocation: QIBs 50%, NIBs 15%, Retail 35%
- Lead Managers: IIFL Capital Services Ltd, HDFC Bank Ltd
- Registrar: MUFG Intime India Private Limited
About the Company
- GK Energy Limited is India’s largest pure-play provider of Engineering, Procurement, and Commissioning (EPC) services for solar-powered agricultural water pump systems under the PM-KUSUM Scheme. The company provides farmers with end-to-end solutions, including survey, design, supply, installation, testing, and maintenance.
- It is empanelled under the Ministry of New and Renewable Energy in five states: Maharashtra, Haryana, Rajasthan, Uttar Pradesh, and Madhya Pradesh.
- Main Products/Services: The company’s business includes Solar-Powered Pump Systems (SPPS), other EPC services like water storage projects under Jal Jeevan Mission and rooftop solar solutions, and trading of PV cells and solar modules.
- Sales & Manufacturing Units: It operates on an asset-light model, sourcing components under its own brand from various vendors. The company is planning a backward integration by setting up a plant to manufacture solar panels.
- Employees: As of March 2025, the company had 90 employees and engaged 709 third-party workmen for installation and commissioning. Promoters: Mr. Gopal Rajaram Kabra and Mr. Mehul Ajit Shah are the promoters of the company.
- Branches/Network: The company operates across Maharashtra, Haryana, Uttar Pradesh, Rajasthan, and Madhya Pradesh and has 12 warehouses across three states.
Financials
| Particulars | FY2025 (Consolidated) | FY2024 (Standalone) | FY2023 (Standalone) |
|---|---|---|---|
| Revenues (Rs. Cr) | 1,094.83 | 411.09 | 285.03 |
| EBITDA (Rs. Cr) | 199.69 | 53.83 | 17.18 |
| EBITDA Margin (%) | 18.24 | 13.10 | 6.03 |
| Net Profit (Rs. Cr) | 133.21 | 36.09 | 10.08 |
| Net Profit Margin (%) | 12.17 | 8.78 | 3.54 |
Post IPO Market cap: Rs. 3103.10 crore. Market cap/sales (FY25): 2.84 times (calculated based on). P/E FY24: 85.96 times. P/E FY25: 23.29 times.
Observations: The company has demonstrated robust financial performance, with revenue growing at a CAGR of 96% from FY23 to FY25. Net profit has grown at an impressive CAGR of 264% over the same period. The company’s profitability margins have also expanded significantly, with EBITDA margins improving from 6.03% in FY23 to 18.24% in FY25.
Anchor investors
- GK Energy raised ₹139.27 crore from 13 anchor investors.
- The top 10 anchor investors and their respective allocations were: Pinebridge Global Funds (16.16%), 360 ONE Flexicap Fund (16.16%), HSBC Flexi Cap Fund (16.16%), 3P India Equity Fund 1M (16.16%), Motilal Oswal Large Cap Fund, Bandhan Small Cap Fund, VQ Fastercap Fund II, Citigroup Global Markets Mauritius, Société Générale – ODI, and AAA India Equity Fund – Scheme I.
- Other participating anchor investors included Edelweiss Equity Savings Fund, Edelweiss Recently Listed IPO Fund and Nuvama Multi Asset Strategy Return Fund.
- Domestic mutual funds were allocated 46.9% of the total anchor portion.
Salient points
- Use of Funds: The net proceeds from the fresh issue will be utilized for funding long-term working capital requirements (Rs. 322.46 crore) and for general corporate purposes.
- Business Scenario: The Indian solar-powered pump market is experiencing significant growth, driven by the PM-KUSUM initiative, which aims to install 1.4 million pumps by March 2026. The market is projected to reach Rs. 300-320 billion by FY29, growing at a CAGR of about 52%.
- Business Verticals: The company operates in three main verticals: EPC for Solar-Powered Pump Systems, Other EPC Services (including Jal Jeevan Mission and rooftop solar), and Trading Activities for solar products.
- Revenue Model: GK Energy offers end-to-end EPC solutions for solar pump systems under government schemes and direct customer orders. Under schemes like PM-KUSUM, farmers select the vendor, and payments are routed through State Nodal Agencies.
- Growth Strategies: Key strategies include replicating its success in Maharashtra across other high-potential states, diversifying into the rooftop solar market, and undertaking backward integration by manufacturing its own solar panels.
- Risks: The business has a high dependency on the PM-KUSUM scheme, which contributed 83.83% of revenue in FY25 and is scheduled to end in March 2026. The company has experienced negative cash flows from operations for the last three fiscal years. There is also significant geographical concentration, with Maharashtra accounting for 93.12% of revenue in FY25.
- Litigations: There are three pending tax proceedings against the company, with a total amount involved of Rs. 3.46 million.
- Revenue Split by Region (FY25): Maharashtra (93.12%), Haryana (3.26%), Rajasthan (2.52%), and Uttar Pradesh (1.09%).
- Revenue Split by Service (FY25): EPC for solar-powered pump systems accounted for 99.32% of revenue from operations.
- Expansion: The company plans to set up a 1 GW solar module manufacturing plant in Maharashtra and is expanding its rooftop solar business with orders worth 5.28 MW.
- Order Book: As of August 15, 2025, the company has an order book of Rs. 1028.96 crore, with the SPPS segment comprising Rs. 1008.88 crore.
- Working Capital and Receivables: The net working capital cycle was 90 days in FY25. The trend for receivables has improved, with the ratio to revenue decreasing from 39.52% in FY23 to 32.96% in FY25.
- CAGR (FY23-25): Revenue grew at a CAGR of 95.99%, while PAT grew at 263.53%.
Peers
| Companies | Revenue (in cr) | EBITDA Margins | PAT Margins | D/E Ratio | P/E |
|---|---|---|---|---|---|
| GK Energy | 1,094 | 18.% | 12.12% | 0.74 | 23.30 |
| Shakti Pumps | 2516 | 24% | 16.20% | 0.14 | 26.1 |
| Oswal Pumps | 1430 | 29% | 19.60% | 0.72 | 32.4 |
Management Commentary
Mr. Gopal Kabra, the CMD & CEO, stated that the company is a major player in the solar agriculture pump market, which is vast, with an addressable market of over 8 crore farmers in the country. He emphasized that vendor selection by farmers is based on brand value, service quality, and track record, as prices are generally uniform across the industry. The company gets its products manufactured under its own brand name to ensure quality and timely delivery. Margins have improved due to a significant increase in volumes, with pump installations growing from over 10,000 annually a few years ago to 45,000 in FY25. The current order book stands at around 42,000 pumps as of mid-August. The net working capital cycle is maintained at 90 days, facilitated by faster payments to vendors, which helps in securing better pricing.
Opinion
- I will apply for the IPO provided the markets are stable in next few days.
- Revenue CAGR of 96% and PAT CAGR of 264% between FY23 and FY25.
- Strong Industry Tailwinds and Order Book.
- The company is undertaking geographical expansion, diversification into the rooftop solar segment, and backward integration into manufacturing.
- Post IPO equity capital: Rs. 40.56 crore, P/E for FY 24: 85.96 times, P/E FY25: 23.29 times.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.