GK Energy Shares Surge On Debut Even As Broader Indian Markets Struggle

GK Energy made a strong debut in a weak market on Friday, with shares listing at a 12% premium on the NSE.

Shares of the company opened at ₹171 on the NSE, compared to the issue price of ₹153. On the BSE, the stock listed at ₹165.20, marking an 8% premium.

Ahead of listing, the company’s unlisted shares were trading at a grey market premium (GMP) of around 12%.

At the time of writing, GK Energy was trading at ₹170 on the NSE and ₹170.2 on the BSE.

IPO Details

The ₹464.26 crore initial public offering, with a price band of ₹145 - ₹153 per share, comprised a fresh issue of equity shares worth ₹400 crore and an offer-for-sale of ₹64.26 crore.

The issue garnered an impressive response, with subscriptions reaching approximately 89.62 times the original number. Bids reached 1,987,778,982 shares compared to just 22,180,828 shares available for offer.

The portion allocated to qualified institutional buyers (QIBs) was oversubscribed by 186.29 times, while non-institutional investors (NIIs) oversubscribed by 122.73 times. The segment for retail investors was oversubscribed by 20.79 times.

Allocation was structured with 50% for qualified institutional buyers (QIBs), 15% for non-institutional bidders, and 35% for retail individual investors.

The IPO allowed a minimum investment of 98 shares per lot, amounting to ₹14,994 at the upper price band.

IIFL Capital Services and HDFC Bank managed the IPO.

Company Details

GK Energy offers engineering, procurement and commissioning (EPC) services for solar-powered agricultural water pump systems. It provides farmers with an end-to-end solution for survey, supply, assembly, installation, testing, commissioning, and maintenance of solar-powered pump systems.

Before the IPO, the company raised ₹139.27 crore from anchor investors, including HSBC Mutual Fund, Motilal Oswal MF, Bandhan MF, Citigroup Global Markets Mauritius, Pinebridge Global Funds, and Société Générale, among others.

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