The shares of GK Energy made a decent stock market debut on September 26, listing at Rs 171 apiece on NSE. This marks a premium of around 12 percent over the issue price.
After the market debut, the shares fell more than 2 percent to close at Rs 166.95 apiece on debut day. The newly listed stock is still more than 9 percent higher than its IPO price. Its market capitalisation at the end of the debut day stands at around Rs 3,386 crore.
On BSE however, the shares listed with a lower premium of nearly 8 percent over the IPO price at Rs 165.20 apiece, but later rose around 2 percent to close at Rs 167.75 apiece. This is around 10 percent higher that its IPO price.
GK Energy IPO GMP:
Ahead of listing, the unlisted shares of the company were trading with nearly 12 percent grey market premium (GMP) over the IPO price. The GMP dropped from the 16 percent quoted by the site on the day of allotments (September 24).
Bumper subscription:
The Rs 464-crore maiden public issue of the Pune-based company saw bumper investor interest during its three days of public bidding, being subscribed nearly 90 times its offer size between September 19 and September 23.
The company that provides EPC services for solar-powered pumps had moved to the capital markets to raise funds through a through a fresh issue of Rs 400 crore and an offer-for-sale (OFS) of 42 lakh shares by promoters Gopal Rajaram Kabra and Mehul Ajit Shah.
Investors could bid for a minimum of 98 shares as part of a lot, requiring an investment of Rs 14,994 at the upper price band, and in multiples thereafter. Around 50 percent of the net offer was allocated to qualified institutional buyers (QIB), while 15 percent and 35 percent of the offer was assigned to non-institutional bidders and retail individual bidders respectively. IIFL Capital Services and HDFC Bank are managing the GK Energy IPO.
What did analysts say about the IPO?
Angel One in its latest note advised investors to subscribe to the issue. The domestic brokerage noted that the Indian solar pump industry is expected to witness robust growth, driven by supportive government policies such as the PM-KUSUM scheme and various state-level solar initiatives.
"GK Energy Ltd is raising approximately ₹464.26 crore through its IPO, comprising a fresh issue of Rs 400 crore and an Offer for Sale of Rs 64.26 crore, with proceeds primarily allocated to long-term working capital requirements of Rs 322.46 crore and the balance for general corporate purposes, to support its operational expansion and growth plans," it said.
At the upper price band of Rs 153 per share, GK Energy is attractively valued, trading at a post-IPO P/E of 23.3x lower than its industry peers, Angel One said. “The company has demonstrated strong financial performance, with significant revenue and PAT growth in FY 2024. Its robust order book and presence in the growing renewable energy sector further support its growth prospects,” it added.
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