GK Energy files draft IPO papers with Sebi; aims to raise Rs 500-crore via fresh issue

GK Energy IPO

Solar-powered agricultural water pump systems provider GK Energy has filed preliminary papers with markets regulator Sebi to garner funds through an initial public offering (IPO).

The proposed IPO of the Pune-based firm is a combination of fresh issue of shares worth Rs 500 crore and an Offer-for-Sale (OFS) of 84 lakh equity shares by selling shareholders, the draft red herring prospectus (DRHP) showed.

The company plans a pre-IPO placement of shares aggregating to Rs 100 crore. If the pre-IPO placement is completed, the fresh issue size will be reduced.

According to the draft papers filed on Friday, proceeds from the fresh issue to the tune of Rs 422.46 crore will be used to fund its long-term working capital requirements and the remaining funds for general corporate purposes.

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

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These solar-powered agricultural water pump systems are offered under Component B of the Central Government's Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) scheme.

The company specializes in the EPC of solar-powered pump systems, catering to both direct beneficiaries and other customers.

GK Energy also delivers a range of additional EPC services, such as the setup and installation of water storage and distribution systems under the Jal Jeevan Mission, a Central Government initiative implemented via urban local bodies.

Other offerings include supplying and installing solar products for government agencies and rooftop solar solutions.

Furthermore, the company is engaged in trading activities, selling photovoltaic (PV) cells, solar modules manufactured by third parties, and other related products.

GK Energy's order book stood at Rs 759 crore as of October 2024.

On the financial front, the company's revenue from operations rose by 44.23 percent to Rs 411.09 crore in fiscal 2024, from Rs 285.03 crore in fiscal 2023 and profit after tax increased to Rs 36 crore in fiscal 2024, from Rs 10 crore in fiscal 2023.

For the six months ended September 30, 2024, revenue from operations stood at Rs 422 crore, and profit after tax stood at Rs 51 crore.

IIFL Capital Services and HDFC Bank are the book-running lead managers for the issue. The equity shares are proposed to be listed on the BSE and BSE.