| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 145 to ₹ 153 | 98 | 19th Sep, 2025 –23rd Sep, 2025 | ₹464.26 Cr |
GK Energy Ltd
Incorporated in 2008, GK Energy Ltd. (GEL) is India’s largest pure play EPC (Engineering, Procurement, and Commissioning) provider for solar-powered agricultural water pump systems under Component B of the Central Government’s PM-KUSUM Scheme, based on installations between January 1, 2022, and July 31, 2025 (source: CRISIL Report). It primarily operates in five states: Maharashtra, Haryana, Rajasthan, Uttar Pradesh, and Madhya Pradesh, which together account for 86% of the total approved installations under the scheme. The company offers end-to-end solutions to farmers under the GK Energy Brand, including survey, design, supply, installation, commissioning, and maintenance of solar pump systems. Its core business is solar pump EPC services, comprising (i) direct-to-beneficiary sales, where farmers or government bodies choose GEL through state-run portals under schemes like PM-KUSUM, and (ii) sales to others, where customers place orders directly. As of July 31, 2025, GEL had completed 62,559 solar pump installations under PM-KUSUM, contributing 7.37% of the total 848,330 completed systems under the scheme. Outside of PM-KUSUM, GEL has installed 34,539 additional systems. GEL also provides other EPC services, including water storage systems under the Jal Jeevan Mission, rooftop solar solutions, and government solar projects. Additionally, it engages in trading activities by selling third-party manufactured PV cells, solar modules, and related products. As of August 15, 2025, the company had a robust order book of Rs. 10,289.6 million, including Rs. 10,088.8 million from solar pump projects (SPPS) and Rs. 200.8 crore from rooftop solar orders. The company follows an asset-light model, sourcing solar components from third-party vendors, and relies heavily on local contractors for installation and logistics. It has 12 warehouses across three states and employs 90 staff members alongside 709 third-party workers
Objective of the GK Energy Ltd IPO
The company proposes to utilise the net proceeds from the issue towards the following objects:
- Funding long-term working capital requirements;
- General corporate purposes.
Rationale To GK Energy Ltd IPO
Dominant player in Maharashtra’s solar pump market, with a robust order book
GEL is the leading pure-play EPC provider of solar-powered pump systems in Maharashtra under the PM-KUSUM Scheme, with a market share of approximately 15% of total installations in the state as of July 31, 2025 (source: CRISIL Report). Maharashtra, accounting for 44% of total national allocations under Component B of the PM-KUSUM Scheme (555,000 pumps), represents the largest market in India for solar-powered pump systems. Additionally, the state government has launched supportive initiatives such as the Atal Yojana, Mukhyamantri Saur Krushi Pump Yojana, and the Magel Tyala Saur Krushi Pump Yojana, collectively creating a robust demand environment. The company has executed 5,500 installations under earlier state-led schemes and secured substantial traction under the Magel Tyala program, with orders for 34,198 pumps (17.1% of approvals), of which 12,571 were already installed by July 31, 2025. As of August 15, 2025, the company holds a robust consolidated order book of Rs. 10,289.6 million, with Rs. 10,088.8 million (98%) from solar pump projects, providing strong revenue visibility. The broader market remains significantly underpenetrated, with ~30 million conventional pumps still in use by 118 million small farmers. The company is expected to continue benefiting from the accelerating shift toward solar-powered pump systems, driven by rising farmer awareness, cost savings, grid independence, and government-backed sustainability initiatives. With its strong execution capabilities, decentralised model, and market leadership in Maharashtra, the company is well-positioned to replicate its success in other high-potential states such as Rajasthan, Haryana, Uttar Pradesh, and Madhya Pradesh.
Decentralized infrastructure driving operational efficiency
The company’s decentralized infrastructure, comprising 12 warehouses across three states and a localized workforce of over 799 employees and workmen, enables efficient operations across broad geographic areas in five states. This decentralized model enables faster deployment and installation of solar-powered pump systems across five key states, reducing logistics costs and turnaround times. By hiring and training local manpower, the company not only enhances operational efficiency but also supports regional socio-economic development, creating employment opportunities and developing skills. In regions with lower immediate demand, the company leverages flexible arrangements with third-party service providers for temporary storage, optimising resource utilisation without incurring fixed overheads. This infrastructure flexibility allows the company to respond quickly to customer needs, improve after-sales service timelines, and maintain high levels of customer satisfaction, which is important under schemes like PM-KUSUM that mandate five-year warranties. The decentralized logistics network and lean, adaptive manpower structure give the company a competitive edge in execution, enabling timely fulfilment of its robust order book and strengthening its capability to meet growing demand across diverse markets more effectively.
Valuation of GK Energy Ltd IPO
India’s solar-powered pump systems market has experienced remarkable growth, driven by the PM-KUSUM scheme initiated in FY19, scaling up to ~0.85 million by July 2025. It is expected to expand to about 4 million by FY29. This growth is fueled by rising demand, improving affordability, diesel price increases, and technological advances like IoT and AI, with market size projected to reach Rs. 300 – 320 billion by FY29, reflecting a CAGR of ~52% from 2024 to 2029. GEL, a leading EPC player in solar-powered pumps in Maharashtra, is well-positioned to capitalize on this expanding market. The company is strategically targeting high-potential states, including Haryana, Rajasthan, Uttar Pradesh, and Madhya Pradesh, to expand its leadership footprint. As of August 15, 2025, GEL boasts a robust order book of Rs. 10,289.6 million. Its decentralized model and customer-centric approach have enabled operational efficiency, timely project execution, and strong customer loyalty supported by reliable after-sales service. Looking ahead, the company plans to undertake backward integration by manufacturing its own solar panels. This strategy is expected to diversify revenue streams and enhance profit margins. Financially, the company demonstrated robust growth with revenue growing at a CAGR of 96% from Rs. 2,850 million in FY23 to Rs. 10,948 million in FY25. EBITDA increased from Rs. 172 million in FY23 to Rs. 1,997 million in FY25, with EBITDA margins expanding from 6.0% in FY23 to 18.2% in FY25. The PAT reflected a CAGR of 264% from Rs. 101 million in FY23 to Rs. 1,332 million in FY25. The current issue is priced at a P/E of 19.5x on the upper price band, which is comparatively less than its peers. Given the company’s leadership position, strong business model, improving financials, and long growth runway, the IPO offers attractive medium to long-term potential. We, therefore, assign the issue a “SUBSCRIBE” rating from a long-term perspective.
What is the GK Energy Ltd IPO?
The initial public offer (IPO) of GK Energy Limited offers an early investment opportunity in GK Energy Ltd . A stock market investor can buy GK Energy Ltd IPO shares by applying in IPO before All GK Energy Ltd shares get listed at the stock exchanges. An investor could invest in GK Energy Ltd IPO for short term listing gain or a long term.
How to apply for the GK Energy Ltd IPO through StoxBox?
To apply for the GK Energy Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the GK Energy Ltd IPO open?
GK Energy Ltd IPO is opening on 19th Aug 2025. Apply Now
What is the lot size of the GK Energy Ltd IPO?
The Lot Size of GK Energy Ltd IPO is 98 equity shares. Login to your account now.
When is the GK Energy Ltd allotment date?
The allotment Date for GK Energy Ltd IPO is 24th Aug 2025. Login to your account now.
When is the GK Energy Ltd IPO listing date?
The listing Date for GK Energy Ltd IPO is 26th Sep 2025. Login to your account now
What is the minimum investment required for the GK Energy Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,994. Login to your account now
What is the maximum investment allowed for the GK Energy Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 1,94,922. Login to your account now
What are the risks associated with investing in the GK Energy Ltd IPO?
- The company’s revenue from solar-powered pump systems under the PM-KUSUM Scheme was Rs. 9,177.5 million, Rs. 3,058.2 million, and Rs. 2,537.2 million in FY25, FY24, and FY23, making up 83.8%, 74.4%, and 89.0% of total revenues, respectively. If this PM-KUSUM Scheme is not extended beyond its current expiration date of March 31, 2026, or replaced by similar state government initiatives, it could significantly impact the company’s business, financial condition, results of operations, and cash flows. Furthermore, any substantial decline in the number of farmers selecting the company as their vendor under the PM-KUSUM Scheme or similar state government programs, reductions in the compensation per solar-powered pump system installed, changes in the company’s eligibility to participate in such schemes, or any other unfavorable changes to the PM-KUSUM Scheme or comparable government programs could adversely affect the company’s financial performance.
- The company depends on a limited number of third-party suppliers for critical components and materials. A failure by any key supplier to deliver as expected could significantly impact the company’s business, financial condition, results of operations, and cash flows.
- As a pure-play EPC company, the company may find it harder to compete with players that currently manufacture solar panels. Failure to compete effectively in the highly competitive solar-powered pump EPC industry could adversely affect its business, financial performance, and cash flows.
When will the GK Energy Ltd IPO shares be credited to my Demat account?
The GK Energy Ltd IPO be credited to the account on allotment date which is 26th Aug 2025. Login to your account now
Where can I find the GK Energy Ltd IPO prospectus?
The prospectus of GK Energy Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
