GK Energy Files DRHP for IPO to Raise Up to INR 500 Crore

Pune-based GK Energy Ltd, a leading provider of solar-powered agricultural water pump systems, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

According to DRHP, the proposed IPO includes a fresh issue of shares aggregating up to INR 500 crore and an Offer-for-Sale (OFS) of 84 lakh equity shares with a face value of INR 2 each by the promoter selling shareholders.The company also plans a pre-IPO placement of shares amounting to INR 100 crore, which, if completed, will reduce the size of the fresh issue.

Further, as per the DRHP, INR 422.46 crore from the fresh issue will be used to meet long-term working capital requirements, with the remaining funds allocated for general corporate purposes.

GK Energy specialises in engineering, procurement, and commissioning (EPC) services for solar-powered agricultural water pump systems under the Central Government's PM-KUSUM Scheme (Component B). The company also undertakes water storage and distribution projects under the Jal Jeevan Mission and provides rooftop solar solutions. In addition, it is involved in trading photovoltaic (PV) cells and solar modules manufactured by third parties. As of October 2024, the company’s order book stood at INR 759 crore.

GK Energy’s revenue from operations grew by 44.23 percent to INR 411.09 crore in FY24 from INR 285.03 crore in FY23, while profit after tax rose to INR 36 crore in FY24 from Rs 10 crore in FY23.

For the six months ended September 30, 2024, the company reported revenue of INR 422 crore and a profit of INR 51 crore. IIFL Capital Services and HDFC Bank are the book-running lead managers for the issue, and the equity shares are proposed to be listed on the BSE and NSE.