GK Energy raises Rs 100 crore from 3 investors via pre-IPO round at Rs 3,100-crore valuation

GK Energy raises Rs 100 crore from 3 investors via pre-IPO round at Rs 3,100-crore valuation

Pune-based GK Energy, which provides the EPC services for solar-powered pump systems, has raised Rs 100 crore from three institutional investors in a pre-IPO round on August 26.

Valuequest India G I F T Fund, and VQ Fastercap Fund II were the largest investors amongst them, buying 2.4 percent stake in the company for Rs 65 crore.

360 ONE High Growth Companies Fund, and 360 ONE Equity Opportunity Fund - Series 4 picked 0.92 percent stake via the said private placement, which is valued at Rs 25 crore.

Kotak Alternate Asset Managers, the alternative asset management arm of the Kotak Group, was also the investor in GK Energy in pre-IPO round, through Kotak Iconic Fund, and Kotak Iconic Fund II, which bought 0.36 percent shares for Rs 10 crore.

"...company has undertaken the pre-IPO placement of 65.35 lakh shares at an issue price of Rs 153 per share, for a cash consideration aggregating to Rs 100 crore by way of private placement," said GK Energy in its notice to investors.

At the said issue price, the company is valued at little more than Rs 3,100 crore.

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Its Board of Directors, and shareholders have approved this pre-IPO placement on August 21, and August 25, respectively. This follows the allotment of pre-IPO placement shares on August 26.

Accordingly, the company has reduced its fresh issue size to Rs 400 crore, from Rs 500 crore planned earlier.

GK Energy filed draft papers with the SEBI on December 13 last year to raise funds via IPO which consists of Rs 500 crore, and an offer-for-sale of 84 lakh shares by Gopal Rajaram Kabra, and Mehul Ajit Shah.

The company that competes with only listed peer Shakti Pumps plans to spend Rs 422.5 crore of fresh issue proceeds for the long term working capital requirements, and the remainder funds for general corporate purposes.

GK Energy also offers other EPC services comprising the erection and installation of water storage and distribution facilities under Jal Jeevan Mission, the supply and installation of solar products for government agencies, and rooftop solar solutions.

IIFL Capital Services, and HDFC Bank are the book running lead managers for handling the GK Energy IPO.