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.

GK Energy Ltd., a provider of solar-powered agricultural pump systems, is gearing up for its Initial Public Offering (IPO) set to open on September 19. The company has set the price band for its shares at Rs 145-153, with ambitions to raise Rs 464.26 crore from the market.

IPO Details

The IPO comprises a fresh issue of equity shares worth Rs 400.00 crore and an offer-for-sale (OFS) component of Rs 64.26 crore. Investors will have the opportunity to participate in the IPO until September 23, with the listing scheduled for September 26 on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Grey Market Premium

The grey market is showing a positive sentiment towards the GK Energy IPO, with a premium of Rs 45 per share. This indicates an estimated listing price of Rs 198, suggesting potential upside for investors if the trend holds.

Investment Information

For retail investors interested in participating:

Company Overview

GK Energy Ltd. specializes in providing solar-powered agricultural pump systems under the PM-KUSUM Scheme, a government initiative aimed at promoting solar energy in the agricultural sector.

Financial Performance

The company has demonstrated strong financial growth:

Use of Proceeds

GK Energy plans to utilize the IPO proceeds as follows:

1. Working capital requirements: Rs 322.46 crore
2. General corporate purposes: Remaining amount

The IPO presents an opportunity for investors to participate in the growing renewable energy sector, particularly in agricultural applications. As always, potential investors should carefully review the offer document and consider their financial objectives before making an investment decision.