Pune-based EPC player GK Energy files DRHP with SEBI for IPO

Upcoming IPO: GK Energy has filed a draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) for a public offer.

GK Energy is a pure-play engineering, procurement and commissioning (EPC) provider of solar-powered agricultural water pump systems.

As per the company’s DRHP, GK Energy’s initial public offer (IPO) will be a mix of a fresh issue of ₹500 crore and an offer for sale (OFS) of up to 84 lakh equity shares. Under the OFS, promoters Gopal Rajaram Kabra and Mehul Ajit Shah will offload stakes.

Out of the fresh funds, the company plans to allocate ₹422.45 crore for funding long-term working capital requirements, and the remaining for general corporate purposes.

The company, in consultation with the BRLMS, may consider a pre-IPO placement of specified securities, aggregating up to ₹100 crore. If the pre-IPO placement is completed, the amount raised pursuant to the pre-IPO placement will be reduced from the fresh issue, the company said in a filing.

The offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is allocated to non-institutional and retail individual investors, respectively.

The company’s shares are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Financial Snapshot

The company’s revenue from operations increased by 44.23% to ₹411.09 crore in fiscal 2024 from ₹285.03 crore in fiscal 2023, primarily due to an increase in its revenue from the EPC for solar-powered pump systems.

Profit after tax (PAT) increased by 258.04% to ₹36.09 crore in fiscal 2024 from ₹10.08 crore in fiscal 2023.

For the six months ended September 30, 2024, revenue from operations stood at ₹421.93 crore and PAT at ₹51.08 crore.

About GK Energy

GK Energy is India’s largest company providing engineering, procurement, and commissioning (EPC) services for solar-powered agricultural water pump systems, according to its DRHP. These systems are part of the Central Government’s PM-KUSUM scheme, which supports farmers with solar-powered pumps.

GK Energy offers farmers a complete solution, covering survey, design, supply, assembly, installation, testing, commissioning, and maintenance of solar pump systems. The company is a registered vendor under the Ministry of New and Renewable Energy for the PM-KUSUM scheme in Maharashtra, Haryana, Rajasthan, and Uttar Pradesh, and has applied to work in Madhya Pradesh.

In addition to solar pump systems, GK Energy also offers EPC services for water storage and distribution systems under the Jal Jeevan Mission, a government initiative carried out through local urban bodies. The company also provides solar products for government agencies and rooftop solar solutions.

As of October 1, 2024, GK Energy has completed 42,778 installations, representing 8.56% of all completed orders, and has installed 16,293 solar-powered pumps outside the PM-KUSUM scheme. The company’s order book stood at ₹759.18 crore.

IIFL Capital Services and HDFC Bank are the book-running lead managers to the issue while Link Intime India is the registrar.