GK Energy IPO GMP at ₹46 – Will Investors See 30% Listing Gains?

GK Energy IPO opens on Sept 19, 2025. Check IPO date, price band, GMP, financials, risks, and expert review to know if you should subscribe.

Every few months, the stock market gifts investors a new opportunity that catches everyone’s attention. This September, the buzz is around GK Energy IPO, which is set to open on September 19, 2025. With its strong financial growth and presence in India’s solar-powered agricultural pump market, investors are eager to know whether this IPO is worth applying for.

If you’re wondering whether GK Energy IPO subscription could be your next smart move—or just another risky bet—this in-depth review will walk you through all the important details: dates, price band, Grey Market Premium (GMP), financials, peer comparison, risks, and expert insights.

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GK Energy IPO Key Details

Here’s a quick snapshot of the issue:

• IPO Open Date: September 19, 2025
• IPO Close Date: September 23, 2025
• Face Value: ₹2 per equity share
• Price Band: ₹145 – ₹153 per share
• Lot Size: 98 shares
• Minimum Investment: ₹14,994
• IPO Size: ₹464.26 Crores
  • Fresh Issue: ₹400 Cr
  • Offer for Sale: ₹64.26 Cr
• Listing: NSE & BSE
• Promoters: Gopal Rajaram Kabra and Mehul Ajit Shah
• Book Running Lead Managers (BRLMs): IIFL Capital Services Ltd. & HDFC Bank
• Registrar: MUFG Intime India Pvt. Ltd.
• Allotment Date: September 24, 2025
• Refunds/Credit to Demat: September 25, 2025
• Listing Date: September 26, 2025

👉 At the upper price band of ₹153, the company’s post-IPO P/E stands at 23.3x, which is below the industry average (~28x).

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About GK Energy Ltd.

Founded in 2008 and headquartered in Pune, GK Energy Limited provides EPC (Engineering, Procurement & Commissioning) services for solar-powered agricultural water pump systems.

Its business is primarily aligned with the Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) scheme—a government initiative that encourages farmers to adopt solar-powered irrigation pumps.

Key highlights of the business:

• Operates an asset-light model, sourcing panels, pumps, and other equipment from third-party vendors but branding them under “GK Energy”.
• Presence across 5 states, supported by 12 warehouses, 90 employees, and 700+ workmen.
• Provides end-to-end solutions: survey, design, installation, commissioning, and maintenance.
• Positioned in a fast-growing renewable energy sector with steady government support.

💡 Think of GK Energy as a bridge between government schemes and rural India’s farmers, ensuring affordable, sustainable irrigation solutions.

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Competitive Strengths

Why are investors showing interest in GK Energy IPO? Here are the strengths:

1. Strong government-backed demand – Heavy reliance on PM-KUSUM ensures a consistent order pipeline.
2. Asset-light model – Outsourcing reduces operational risks and capital burden.
3. Healthy return ratios – ROE of 63.71% and ROCE of 55.65%.
4. Experienced promoters – Backed by industry veterans, Gopal Rajaram Kabra and Mehul Ajit Shah.
5. Rapid expansion – Building warehouses and workforce across multiple states.

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What You Should Remember

GK Energy isn’t just another solar company—it has carved a niche in solar irrigation, which is both government-driven and essential for farmers. Its asset-light model and robust margins make it attractive, but reliance on government schemes is a double-edged sword.

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Financial Performance

Let’s look at GK Energy’s numbers:

Particulars (₹ Cr)	FY2023	FY2024	FY2025
Revenue	285.45	412.31	1,099.18
EBITDA	17.18	53.83	199.69
PAT	10.08	36.09	133.21
Net Worth	19.87	55.96	209.09
Borrowings	42.61	62.29	217.79

Key Ratios:

• EBITDA Margin: 18.24%
• PAT Margin: 12.12%
• Debt-Equity Ratio: 0.74
• Price-to-Book: 12.39x

📈 Revenue jumped almost 4x in 3 years, while PAT (net profit) surged 13x.

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What You Should Remember

GK Energy’s financial performance signals explosive growth. However, its debt levels have also increased significantly, a red flag for risk-averse investors.

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IPO Valuation & Peer Comparison

• EPS (FY2025 Post-IPO): ₹6.57
• P/E at Upper Band (₹153): 23.3x
• Industry Average P/E: ~28x

Peers:

• Waaree Energies: ~45x
• KPI Green Energy: ~18x

✅ GK Energy IPO is priced below industry average, making it relatively attractive compared to peers.

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Grey Market Premium (GMP)

As of September 18, 2025, the GMP for GK Energy IPO is ₹46.

• At this GMP, investors can expect ~30% listing gains.
• GMP fluctuates daily, but the current trend shows strong investor demand.

⚠️ Note: GMP is an unofficial indicator and should not be the sole basis for investment.

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Reasons to Invest in GK Energy IPO

1. Robust Financial Growth – Revenue and profits growing rapidly.
2. Government Support – Aligned with PM-KUSUM, ensuring steady demand.
3. Healthy Margins – PAT margin above 12%.
4. Attractive Valuation – P/E lower than industry average.
5. Positive GMP Trend – Indicates potential listing gains.

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Risk Factors in GK Energy IPO

1. Dependence on Govt. Schemes – Business tied heavily to PM-KUSUM.
2. Rising Debt Levels – Borrowings increased 5x in 3 years.
3. Customer Concentration – Reliance on government contracts.
4. Policy Risks – Any policy change can affect business.
5. Working Capital Intensive – Requires large upfront capital.

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What You Should Remember

GK Energy’s story is promising, but investors must note that too much dependence on government schemes can be risky. A policy shift or funding cut could impact revenue growth.

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How to Apply for GK Energy IPO

You can apply through:

• ASBA (Application Supported by Blocked Amount) via net banking of banks like HDFC, ICICI, SBI, etc.
• UPI-based applications via stock brokers such as Zerodha, Groww, Paytm Money, Angel One.

👉 Minimum lot size: 98 shares (₹14,994)

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Conclusion – Should You Subscribe to GK Energy IPO?

The GK Energy IPO offers a compelling mix of:

• Strong financial growth
• Government-backed demand
• Reasonable valuations
• Positive GMP trend

However, it carries risks around debt levels and policy dependence.

💡 Our View: Investors can consider subscribing to this IPO for both listing gains and long-term potential. Conservative investors should monitor debt levels and government allocations closely.