Renewable energy engineering firm GK Energy, India’s largest EPC (engineering, procurement and commissioning) player in solar-powered agricultural pump systems, has raised INR 100 crore through a pre-IPO placement from three institutional investors. The placement, executed on 26 August 2025, values the company at a little over INR 3,100 crore and trims the size of its upcoming fresh issue.
GK Energy Pre-IPO Placement: Details
The company allotted 65.35 lakh shares at INR 153 per share, translating to a dilution of about 3.70% of pre-offer equity capital.
- ValueQuest India GIFT Fund and VQ Fastercap Fund II led the round, collectively investing INR 65 crore for a 2.4% stake.
- 360 ONE High Growth Companies Fund and 360 ONE Equity Opportunity Fund – Series 4 subscribed for shares worth INR 25 crore, taking up 0.92%.
- Kotak Alternate Asset Managers, via Kotak Iconic Fund and Kotak Iconic Fund II, invested INR 10 crore, securing 0.36%.
The pre-IPO shares are subject to a regulatory lock-in period under SEBI’s ICDR norms.
GK Energy IPO Size Adjusted
Following the pre-IPO placement, GK Energy has reduced the size of its fresh issue from the initially planned INR 500 crore to INR 400 crore. Including the offer-for-sale (OFS) of 84 lakh shares by promoters Gopal Rajaram Kabra and Mehul Ajit Shah, the revised IPO size now stands at INR 528.52 crore.
IPO Journey and Regulatory Approvals
GK Energy filed its draft red herring prospectus (DRHP) with SEBI on 13 December 2024. The company subsequently submitted an addendum in April 2025 updating its financials and operational metrics. Shareholder and board approvals for the pre-IPO placement were obtained on 21 August 2025 and 25 August 2025, respectively, with allotments completed on 26 August 2025.
The book-running lead managers for the IPO are IIFL Capital Services and HDFC Bank, with Link Intime India serving as registrar.
Company Profile and Business Focus
Founded in 2008 as GK Energy Marketers and converted into a public company in December 2024, GK Energy has become a key player in India’s renewable energy space. Its flagship business is solar-powered agricultural pump systems under the PM-KUSUM scheme, where the company has the second largest domestic market share by number of installations.
Apart from agricultural pumps, GK Energy also provides EPC services for:
- Water storage and distribution infrastructure under the Jal Jeevan Mission
- Rooftop solar
- Supply and installation of solar products for government agencies
The company follows an asset-light model, it sources components from third-party vendors and has a decentralized network of 13 warehouses and 485 contractors to ensure cost-efficient execution and strong after-sales service.
GK Energy Pre-IPO: Financial Performance and Growth
GK Energy has grown rapidly with a large EPC order book and growing government-backed opportunities.
- Revenue from operations jumped from INR 285.03 crore in FY23 to INR 1,094.83 crore in FY25, reflecting a CAGR of 96%.
- Profit after tax (PAT) surged from INR 10.08 crore in FY23 to INR 133.21 crore in FY25.
- EBITDA margins improved from 6.03% in FY23 to 18.24% in FY25.
- Return on Equity (ROE) remained strong at 47.72% in FY25, despite hyper-growth.
The company plans to utilize INR 422.5 crore of fresh issue proceeds towards long-term working capital, with the remainder allocated to general corporate purposes.
GK Energy Pre-IPO: Market Outlook
India’s solar pump market is expected to be INR 1.5 lakh crore by FY2029 (CRISIL projection), and GK Energy is sitting on top of this wave. Its strong financials, government-linked projects, and rural energy solutions make it align with the country’s renewable energy goals.
Conclusion
GK Energy’s INR 100 crore pre-IPO is a big milestone before the listing. It not only strengthens the balance sheet but also indicates a strong institutional interest in the growth story. With a proven track record, scalable business model, and aligning with India’s clean energy vision, GK Energy’s IPO is going to get a lot of investor attention.
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