GK Energy IPO Subscribed 6.4 Times on Day 2; Grey Market Premium at ₹22

The initial public offering (IPO) of GK Energy Ltd, a solar-powered agricultural water pump systems provider, continued to draw strong investor interest on the second day of bidding. According to data from the National Stock Exchange (NSE), the IPO was subscribed 6.4 times on September 22.

Strong Subscription Figures on Day 2

GK Energy’s IPO received bids for 14,22,08,192 equity shares against 2,21,80,828 shares on offer, reflecting robust demand across investor categories. The portion reserved for retail individual investors was subscribed to 6.84 times, indicating a strong response from small investors. Non-institutional investors subscribed to their portion 10.05 times, showcasing heavy demand from high-net-worth investors. The category allocated for qualified institutional buyers (QIBs) also saw healthy participation with 2.9 times subscription.

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Anchor Investor Participation

Ahead of the IPO opening, GK Energy announced that it had successfully raised over ₹139 crore from anchor investors. The anchor book was an important step in boosting confidence and drawing early momentum into the issue.

IPO Size, Price Band, and Timeline

The public issue is sized at ₹464 crore and will close on September 23. The price band has been fixed between ₹145 and ₹153 per equity share. The offering comprises a combination of a fresh issue of shares worth ₹400 crore and an offer-for-sale (OFS) component of 42 lakh equity shares, valued at ₹65 crore at the upper price band, by existing selling shareholders.

Utilisation of IPO Proceeds

GK Energy has outlined the use of proceeds from the fresh issue. A significant portion of ₹322.5 crore will be directed towards funding the company’s long-term working capital requirements. The remaining balance will be allocated for general corporate purposes, allowing the company flexibility to strengthen its operational framework and business growth.

Company Profile and Market Presence

GK Energy, based in Pune, has established itself as India’s largest pure-play provider of engineering, procurement, and commissioning (EPC) services for solar-powered agricultural water pump systems. The company provides farmers with a comprehensive end-to-end solution, including survey, design, supply, assembly, installation, testing, commissioning, and maintenance of solar-powered pumps. With this integrated approach, GK Energy aims to offer a reliable and efficient single-source solution for rural and agricultural markets dependent on water pumping systems.

Book Running Lead Managers

The IPO is being managed by IIFL Capital Services and HDFC Bank, who are acting as the book-running lead managers for the offer. Their involvement adds credibility and ensures smooth handling of the issue.

Grey Market Premium and Expected Listing Price

According to IPO tracking platform InvestorGain, GK Energy’s shares were commanding a Grey Market Premium (GMP) of ₹22 as of September 22 at 6:25 pm. Based on the upper price band of ₹153, the estimated listing price is expected to be around ₹175 per share. This indicates a potential listing gain of approximately 14.38 percent for investors.

Conclusion

With robust subscription levels across retail, non-institutional, and institutional categories, along with anchor investor participation, GK Energy’s IPO has generated strong momentum ahead of its closing date on September 23. The combination of fresh equity issuance, offer-for-sale component, clear utilisation of proceeds and a steady Grey Market Premium has positioned the issue as one of the closely watched offerings in the market this month. Investors will now await the final subscription figures and eventual listing performance to gauge how the company’s market entry unfolds.

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GK Energy IPO