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.

GK Energy Ltd, India's largest pure-play EPC services provider for solar-powered agricultural water pump systems, witnessed a robust response to its Initial Public Offering (IPO) on the first day of bidding. The Rs 464-crore IPO was oversubscribed 2.57 times, showcasing strong investor interest across various categories.

Subscription Details

The Pune-based company received bids for 5.70 crore shares against the 2.22 crore shares on offer. The subscription breakdown across investor categories was as follows:

IPO Structure and Pricing

The IPO comprises a fresh issue of Rs 400 crore and an offer-for-sale (OFS) of Rs 65 crore by existing shareholders. GK Energy has set the price band for the IPO at Rs 145-153 per share. The public offering is scheduled to close on September 23.

Anchor Investment

Prior to the IPO opening, GK Energy successfully raised over Rs 139 crore from anchor investors, further solidifying the market's confidence in the company's prospects.

Use of Proceeds

The company plans to utilize the funds raised through the IPO as follows:

• Rs 322.50 crore for working capital requirements
• The remainder for general corporate purposes

About GK Energy

GK Energy Ltd stands as India's largest pure-play EPC (Engineering, Procurement, and Construction) services provider specializing in solar-powered agricultural water pump systems. The company's focus on sustainable energy solutions for agriculture aligns with the growing emphasis on renewable energy in India.

Lead Managers

The IPO is being managed by IIFL Capital Services and HDFC Bank as the lead managers, bringing their expertise to guide the public offering process.

The strong initial response to GK Energy's IPO reflects investor confidence in the renewable energy sector and the company's position within it. As the IPO continues, market participants will be watching closely to see if this momentum sustains through the remaining days of the subscription period.