GK Energy, India’s largest EPC player for solar powered agricultural pump systems, has filed an updated addendum to its DRHP with SEBI. This is a big step towards its much awaited IPO which will raise up to INR 500 cr via fresh issue and OFS of 8.4 million shares by promoters.
GK Energy addendum updates key financial and operational numbers and shows the company’s confidence in navigating the rapidly changing renewable energy landscape in India.
GK Energy IPO Structure
GK Energy IPO comprises:
- Fresh Issue: Up to INR 500 crore
- Offer for Sale: 84,00,000 equity shares by Promoters Gopal Rajaram Kabra and Mehul Ajit Shah
- Pre-IPO Placement: Company may raise up to INR 100 crore through Pre-IPO placement, which would proportionally reduce the fresh issue size.
GK Energy’s OFS allows partial monetization by its promoters, while the fresh issue proceeds are earmarked to bolster long-term working capital and for general corporate purposes.
Fund Utilization
The company will use INR 422.46 cr from the Net Proceeds to fund its long term working capital requirements. This is in line with the company’s massive EPC order book of INR 714.28 cr (as of 31 March 2025) and growth driven by government backed schemes like PM-KUSUM.
Interestingly, GK Energy has seen a working capital CAGR of 163% between FY23 and FY25 – a clear sign of its exponential growth.
GK Energy – Financials at a Glance
GK Energy’s financial performance over the past three fiscal years makes for compelling reading:
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from Operations | 285.0.3 | 411.09 | 1,094.83 |
| Profit After Tax | 10.08 | 36.09 | 133.21 |
| Operating EBITDA Margin (%) | 6.03 | 13.09 | 18.24 |
| ROE (%) | 50.73 | 64.49 | 47.72 |
With a 96% revenue CAGR and PAT margin improvement from 3.53% in FY23 to 12.06% in FY25, GK Energy showcases financial discipline amidst hyper-growth.
Market Leadership in a Sunrise Sector
GK Energy holds the second-largest domestic market share by number of installations under the PM-KUSUM scheme, with a dominant presence in Maharashtra, which alone accounts for 38% of India’s approved solar pump projects. The firm installed 16,251 pumps in the six months ended September 2024, contributing to over 8.5% of total completions nationwide.
The company’s focus on direct-to-beneficiary sales under government schemes — combined with its asset-light model and strong vendor network — gives it a resilient and scalable platform.
GK Energy leverages a decentralized warehouse and contractor network (13 warehouses and 485 third-party technicians) to deliver high-touch, cost-efficient installations and after-sales service. Its customer service includes IoT-enabled troubleshooting and a mobile app for remote monitoring, making it stand out in a commoditized space.
Valuation and Risks
While final pricing is pending, the expected market interest will likely value GK Energy at a healthy premium given its ROCE of 50.10%, net debt-to-EBITDA ratio of 0.98 (FY24), and strategic tailwinds from India’s INR 1.5 lakh crore solar pump opportunity by FY2029 (CRISIL estimate).
Key Risks include:
- Delays in government payments (SNA/SIA cycle)
- High working capital lock-in
- Dependence on bank guarantees for execution
Conclusion
GK Energy’s updated DRHP addendum underscores its readiness to tap the capital markets amid booming demand for clean, decentralized energy solutions in agriculture. Its consistent financial outperformance, robust order book, and dominant PM-KUSUM positioning place it at the heart of India’s rural energy transformation.
Investors looking for an ESG-aligned, government-backed growth story in India’s renewable space should keep a close eye on this IPO when bidding opens. For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.