The three-month anchor lock-in period for two renewable energy companies, GK Energy Limited and Saatvik Green Energy, ends today, potentially increasing the supply of shares available for trading. Both companies, which went public on September 26, will see significant portions of their institutional holdings become tradeable.

GK Energy Lock-in Expiry Details

According to Nuvama's estimates, nearly 5 million shares of GK Energy Limited, representing approximately 2% of the outstanding shares, will become eligible for trade as the anchor lock-in period expires. The company, backed by Citigroup and Societe Generale, has seen its stock price decline significantly from its peak performance.

Company Background and IPO Performance

Incorporated in 2008, GK Energy Limited provides engineering, procurement and commissioning (EPC) services for solar-powered agricultural water pump systems. The Pune-headquartered company operates 12 warehouses across three states. The company's ₹464.00 crore IPO witnessed overwhelming investor demand, achieving an overall subscription of 93.58 times.

Saatvik Green Energy Concurrent Lock-in End

Saatvik Green Energy will also see its mandatory institutional holding period conclude today, releasing 3 million shares into the market. The company, incorporated in 2015, manufactures solar modules and offers EPC services through two manufacturing facilities in Ambala, Haryana. Manufacturing operations commenced in 2016, and the company offers a comprehensive portfolio of solar module products.

Current Market Performance

Both companies have experienced significant price corrections from their respective peaks despite delivering decent listing gains initially. Saatvik Green Energy shares have declined 33% from their peak of ₹567.00 and are down 18% from the issue price. The stock was listed flat on both NSE and BSE on the same day as GK Energy Limited.

The expiry of anchor lock-in periods typically increases the available supply of shares in the market, as institutional investors gain the flexibility to trade their holdings. With both GK Energy and Saatvik Green Energy currently trading below their IPO prices, the market will be closely watching how the release of these additional shares impacts their stock performance in the coming days.

GK Energy Limited has secured a significant order from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for solar water pumping systems under the PM-Kusum B Scheme. The company received an amendment Letter of Empanelment (LoE) for supplying 10,000 off-grid DC solar photovoltaic water pumping systems across Maharashtra state.

Order Details and Financial Impact

The comprehensive order encompasses the design, manufacture, supply, transport, installation, testing, and commissioning of solar water pumping systems. The financial parameters of this significant contract are outlined below:

Technical Specifications and Scope

The order falls under the Magel Tyala Saur Krushi Pump Yojana/PM-Kusum B Scheme, focusing on off-grid DC solar photovoltaic water pumping systems. The project scope includes:

• Complete design and manufacturing of solar pumping systems
• Supply and transportation to designated locations
• Professional installation and testing services
• Comprehensive commissioning of all units

Execution Timeline and Conditions

MSEDCL has set specific execution parameters for this project. The installation must be completed within 60 days from the date of issuance of Notice to Proceed (NTP) or work order. However, the Letter of Empanelment includes a critical condition regarding quantity fulfillment.

Important Contractual Conditions

MSEDCL has highlighted a specific condition for vendors regarding the Letter of Empanelment quantity. The LoE quantity remains subject to tender quantity, with a provision that when the tender progress reaches 100,000 units, the balance LoE quantity will stand cancelled. This condition provides flexibility in project execution based on overall tender performance.

Corporate Governance and Compliance

The company has confirmed that this order does not involve any related party transactions and that promoters or group companies have no interest in the awarding entity. GK Energy Limited has made this disclosure in compliance with SEBI Listing Regulations, ensuring transparency in corporate communications and maintaining regulatory adherence.