Mumbai — GK Energy Ltd’s ₹464 crore initial public offering concludes today with an overwhelming investor response, recording over 8 times subscription while its grey market premium stabilizes at ₹20 per share amid strong retail and institutional demand.
The solar energy solutions provider saw its IPO oversubscribed 8.14 times by afternoon trading on the final day, with non-institutional investors leading the charge at 15.51 times subscription, followed by retail investors at 7.93 times and qualified institutional buyers at 2.92 times.
According to grey market sources, GK Energy’s IPO commands a premium of ₹20 per share as of today morning, indicating an estimated listing price of ₹173 against the upper price band of ₹153. This translates to potential listing gains of approximately 13% for successful applicants, though the premium has softened from the peak of ₹46 recorded before the IPO opened.
“The subscription numbers reflect strong confidence in India’s solar energy sector,” said market analyst Rajesh Kumar. “GK Energy’s position as the country’s largest pure-play provider of solar-powered agricultural water pump systems under the PM-KUSUM scheme makes it an attractive investment proposition.”
The Maharashtra-based company, which raised ₹139 crore from anchor investors ahead of the public issue, operates primarily under the government’s Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan scheme, providing end-to-end solutions for solar-powered agricultural pump systems.
Market experts note that while the IPO appears reasonably valued with a PE ratio of 19x compared to listed peers trading at 28x, investors should consider the company’s dependence on government subsidy programs and recent negative operating cash flows due to rising receivables.
Share allotment is scheduled for September 24, with the stock expected to debut on BSE and NSE on September 26. The company plans to utilize ₹322 crore from the fresh issue for long-term working capital requirements, supporting its operational expansion in India’s growing solar energy market.
