GK Energy IPO
GK Energy IPO Price Range is ₹145 - ₹153, with a minimum investment of ₹14,994 for 98 shares per lot.
Subscription Rate
89.62x
as on 23 Sep 2025, 08:02PM IST
Minimum Investment
₹14,994
/ 98 shares
IPO Status
Price Band
₹145 - ₹153
Bidding Dates
Sep 19, 2025 - Sep 23, 2025
Issue Size
₹464.26 Cr
Lot Size
98 shares
Min Investment
₹14,994
Listing Exchange
BSE
IPO Doc
GK Energy IPO Application Timeline
IPO Subscription Status
as on 23 Sep 2025, 08:02PM IST
IPO subscribed over
🚀 89.62x
This IPO has been subscribed by 20.792x in the retail category and 186.287x in the QIB category.
Subscription Rate
| Total Subscription | 89.62x |
| Retail Individual Investors | 20.792x |
| Qualified Institutional Buyers | 186.287x |
| Non Institutional Investors | 122.725x |
Objectives of IPO
- The company's IPO aims to raise capital, with a total offer size aggregating up to ₹464.26 crore. This includes a fresh issue of ₹400 crore and an offer for sale of ₹64.26 crore.
- The company intends to utilize ₹322.46 crore from the Fresh Issue to meet its long-term working capital requirements for FY26. This funding is crucial because the company is currently operating with a negative working capital of ₹50 crore. The business has a substantial SPSS (Solar-Powered Pump Systems) Order Book valued at ₹1,008.88 crore as of August 15, 2025, and the market is expected to grow significantly to ₹30,000-32,000 crore by FY29. To support this growth and execute orders, the company has been fully utilizing its existing fund-based and non-fund-based borrowing limits. It also needs to maintain substantial funds as margin for bank guarantees, which increased from ₹19.24 crore on March 31, 2024, to ₹63.26 crore on March 31, 2025. As of July 31, 2025, the company's total borrowings were ₹488.87 crore on a consolidated basis, and its Net Debt to Equity Ratio for FY25 was 0.74 times. These funds will help manage increasing operational demands and reduce reliance on external financing for working capital.
Financial Performance of GK Energy
The company has shown very strong growth over the last three years. Revenue jumped from ₹285.5 crore in FY23 to ₹1,099.2 crore in FY25, growing at a CAGR of 96%.
Profitability improved even faster. Net profit rose from ₹10.1 crore in FY23 to ₹133.2 crore in FY25, with margins moving up from 3.5% to 12.1%. The EBITDA margin also expanded from just over 6% to more than 18%, showing better cost control and higher efficiency.
On the other side, borrowings also increased from ₹42.6 crore to ₹217.8 crore, growing at a CAGR of 126%. This means part of the growth is funded by debt. Still, the strong rise in profit and margins shows the company has been able to use its borrowings effectively.
Overall, the numbers point to a company that is scaling up fast, improving its profitability, and building a stronger balance sheet, though with higher debt. If it can maintain margins and manage borrowings well, the financial trend looks very positive.
Strengths and Risks
Strengths
It is the leading pure play Engineering, Procurement, and Commissioning (EPC) provider of solar-powered agricultural water pump systems in Maharashtra, holding approximately 15% of total installations under the PM-KUSUM Scheme as of July 31, 2025.
The company has a strong track record of growth, with revenue from operations increasing from ₹285.03 crore in FY23 to ₹1,094.83 crore in FY25, representing a Compound Annual Growth Rate (CAGR) of 95.99%.
Profit for the year grew from ₹10.08 crore in FY23 to ₹133.21 crore in FY25, a CAGR of 263.53%. Its EBITDA Margin improved from 6.03% to 18.24% and PAT Margin from 3.53% to 12.12% over the same period.
It has a substantial SPSS (Solar-Powered Pump Systems) Order Book of ₹1,008.88 crore as of August 15, 2025, poised to capitalize on a market projected to reach ₹30,000-32,000 crore by FY29, indicating significant future growth potential.
It has improved its cash collection efficiency, with Receivable Days decreasing from 144 days in FY23 to 120 days in FY25. This indicates faster conversion of sales into cash, improving liquidity per unit of revenue.
Risks
Its largest customer accounted for 15.13% (₹165.64 crore) of revenue in FY25. This poses a significant risk if this key customer is lost or reduces its business, impacting overall revenue and profitability.
The business is working capital-intensive, operating with a negative working capital of ₹50 crore. It reported net cash used in operating activities of ₹98.6 crore, ₹4.86 crore, and ₹14.94 crore for FY25, FY24, and FY23, respectively, highlighting liquidity challenges.
Total borrowings reached ₹488.87 crore as of July 31, 2025. It is bound by restrictive covenants in financing agreements, and a substantial portion of its assets are hypothecated, which could be enforced upon default.
The company achieved an EBITDA Margin of 18.24% for FY25. This is lower than both Shakti Pumps (24%) and Oswal Pumps (29.4%), suggesting less efficient operating profitability compared to its competitors.
Operations are highly concentrated in a few states, with Maharashtra contributing 93.12% of revenue in FY25. Economic downturns or policy changes in this region could severely affect its overall business.
A significant portion of revenue, 83.83% in FY25, comes from direct-to-beneficiary sales under the PM-KUSUM Scheme, which is scheduled to end on March 31, 2026. Non-extension or replacement could severely impact revenue.
How to Apply for GK Energy IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on GK Energy IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Listed Competitors of GK Energy
Company | Revenue from Operations | EBITDA Margin | PAT | ROCE | P/E Ratio | Receivable Days |
GK Energy | ₹1,094.8 Cr | 18.24% | ₹133.2 Cr | 55.65% | 23.30 | 120 |
₹2,516.2 Cr | 24.00% | ₹408.4 Cr | 43.90% | 24.11 | 152 | |
₹1,430.3 Cr | 29.40% | ₹280.6 Cr | 82.50% | 29 | 111 |
GK Energy Shareholding Pattern
| Promoters | 93.28% | |
| Name | Role | Stakeholding |
| Gopal Rajaram Kabra | Promoter | 89.71% |
| Mehul Ajit Shah | Promoter | 3.57% |
| Public | 6.71% | |
| Name | Role | Stakeholding |
| VQ Fastercap Fund II | Public | 1.48% |
| Valuequest India G.I.F.T. Fund | Public | 1.29% |
| Others | 3.95% |
About GK Energy
The company primarily serves farmers needing solar-powered agricultural water pump systems, often through government schemes like PM-KUSUM. It operates in key Indian states such as Maharashtra, Chhattisgarh, Haryana, Uttar Pradesh, Rajasthan, and, since March 2025, Madhya Pradesh. In FY25, its revenue from operations reached ₹1,094.8 crore. As of July 31, 2025, it has completed 62,559 solar pump system orders under the PM-KUSUM Scheme. The company's order book was valued at ₹1,008.88 crore as of August 15, 2025.
The company holds a strong market position, ranking as the number two player in India for solar-powered pump system installations. In Maharashtra, it is the leading pure play EPC provider under the PM-KUSUM Scheme, holding about 15% of the market share for installed systems as of July 31, 2025. Its future strategy includes replicating its success in high-potential states such as Haryana, Rajasthan, Uttar Pradesh, and Madhya Pradesh. It also aims to diversify revenue by installing more rooftop solar systems and plans to manufacture its own solar panels to backward-integrate operations.
For more details, visit the company’s website here: https://gkenergy.in/
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Who are the promoters of GK Energy?
GK Energy Limited's promoters are Gopal Rajaram Kabra and Mehul Ajit Shah. They collectively held 93.28% of the company's pre-Offer equity share capital. Gopal Rajaram Kabra, the founder, has over 18 years of experience in the solar power sector.
Who are the competitors of GK Energy?
GK Energy Limited operates in the competitive solar-powered pump systems market. Its key competitors include Shakti Pumps Limited, Oswal Pumps Limited, and Rotomag Motors and Controls Private Limited. It was the largest pure-play EPC provider in this segment from January 2022 to July 2025.
How does GK Energy make money?
GK Energy Limited primarily earns money through Engineering, Procurement, and Commissioning (EPC) of solar-powered pump systems, contributing 99.32% of its revenue in FY25. This includes direct sales to farmers under schemes like PM-KUSUM, which comprised 84.19% of its FY25 revenue.