Two recent Initial Public Offerings (IPOs) in the energy sector have garnered significant attention from investors, with GK Energy's IPO seeing an extraordinary oversubscription and Saatvik Green Energy's offering also receiving a robust response.

GK Energy IPO: Massive Oversubscription

GK Energy, a Pune-based company, has concluded its ₹464-crore IPO with a remarkable oversubscription of nearly 90 times. The strong demand came from various investor categories:

• Qualified Institutional Buyers (QIBs): 186.29 times oversubscribed
• Non-Institutional Investors: 122.73 times oversubscribed
• Retail Investors: 20.79 times oversubscribed

The IPO structure included a fresh issue of ₹400 crore and an offer-for-sale (OFS) component of ₹64.26 crore. The price band was set at ₹145-153 per share.

Key highlights of GK Energy's IPO:

• Raised ₹139 crore from anchor investors
• Plans to utilize ₹322.50 crore for working capital requirements

Saatvik Green Energy IPO: Solid Subscription

Saatvik Green Energy's IPO also received a positive response, with an overall subscription of 6.57 times. The company received bids for 9.38 crore shares against the 1.427 crore shares on offer. The subscription details across investor categories are as follows:

The IPO details for Saatvik Green Energy include:

• Total size: ₹900 crore (₹700 crore fresh issue + ₹200 crore OFS)
• Price band: ₹442-465 per share
• Raised ₹269 crore from anchor investors

Saatvik Green Energy plans to use the IPO proceeds for:

1. Funding a 4 GW solar PV module manufacturing facility in Odisha
2. Repayment of debt

Investor Enthusiasm in the Energy Sector

The strong response to both IPOs highlights the growing investor interest in the energy sector, particularly in companies focused on renewable and green energy solutions. GK Energy's massive oversubscription and Saatvik Green Energy's solid performance indicate a positive sentiment towards companies operating in this space.

As these companies prepare to list on the stock exchanges, market participants will be keenly watching their performance and the impact on the broader energy sector in India.

Maharashtra-based GK Energy Ltd.'s Initial Public Offering (IPO) entered its second day of subscription on Monday, building on a strong start that saw it oversubscribed 2.57 times on the first day. The company, which specializes in solar-powered pump systems, aims to raise up to Rs 464.00 crore through this public offering.

IPO Details

Strong Anchor Investment

GK Energy has already secured significant interest from institutional investors. The company raised Rs 139.00 crore from 13 anchor investors prior to the IPO opening. These anchors were allotted 91.03 lakh shares at Rs 153 per share, which is at the upper end of the price band.

Use of Proceeds

The funds raised through this IPO will be primarily utilized for:

1. Long-term working capital requirements: Rs 322.46 crore
2. General corporate purposes

About GK Energy

GK Energy is positioned as India's largest pure-play provider of engineering, procurement, and commissioning (EPC) services for solar-powered agricultural water pump systems. The company offers end-to-end solutions in this niche but growing sector, aligning with India's push for sustainable energy solutions in agriculture.

Grey Market Performance

The grey market is showing positive sentiment towards GK Energy's IPO:

Subscription Status

As of the end of Day 1:

• Total Subscription: 2.57 times oversubscribed

Investors and market watchers will be keenly observing the subscription trends over the remaining days of the IPO. The strong start and positive grey market premium suggest considerable interest in GK Energy's public offering, reflecting investor confidence in the solar energy sector and the company's business model.

As always, investors are advised to conduct their own research and consider their risk appetite before making investment decisions.