GK Power Restricted is hitting the capital markets with its Preliminary Public Providing (IPO). Buyers have been intently monitoring this concern, given the corporate’s presence within the solar-powered agricultural pump EPC enterprise beneath the Authorities’s PM-KUSUM scheme. On this detailed GK Power IPO Evaluate, we’ll cowl the IPO Date, IPO Value, IPO Measurement, GMP, financials, goals, peer comparability, causes to speculate, threat elements, and whether or not it is best to subscribe or keep away from this IPO.
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About GK Power Ltd.
Included in 2008 and headquartered in Pune, GK Power supplies engineering, procurement, and commissioning (EPC) companies for solar-powered agricultural water pump programs. These are primarily applied beneath the Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM) scheme. The corporate follows an asset-light mannequin and sources photo voltaic panels, pumps, and elements from specialised distributors beneath its “GK Power” model.
As of August 2025, the corporate operates with 12 warehouses throughout 3 states, 90 staff, and over 700 workmen, serving farmers in 5 states. It presents end-to-end options together with survey, design, set up, commissioning, and upkeep of solar-powered pump programs.
Aggressive Strengths
- Robust presence within the government-backed PM-KUSUM scheme.
- Asset-light enterprise mannequin with outsourcing from high quality distributors.
- Wholesome return ratios – ROE of 63.71% and ROCE of 55.65%.
- Skilled promoters – Gopal Rajaram Kabra and Mehul Ajit Shah.
- Increasing warehousing and workforce to cater to a number of states.
GK Power IPO Situation Particulars
- IPO Date: September 19, 2025 – September 23, 2025
- IPO Measurement: ₹464.26 Crores
- Contemporary Situation: ₹400 Crores (2.61 Cr shares)
- Provide for Sale: ₹64.26 Crores (0.42 Cr shares)
- IPO Value Band: ₹145 – ₹153 per share
- Face Worth: ₹2 per share
- Lot Measurement: 98 shares
- Minimal Funding: ₹14,994 (1 lot)
- Itemizing At: NSE & BSE
- Promoters: Gopal Rajaram Kabra & Mehul Ajit Shah
- BRLMs: IIFL Capital Providers Ltd. & HDFC Financial institution
- Registrar: MUFG Intime India Pvt. Ltd.
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Monetary Efficiency (₹ in Crores)
| Particulars | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Income | 285.45 | 412.31 | 1,099.18 |
| EBITDA | 17.18 | 53.83 | 199.69 |
| PAT | 10.08 | 36.09 | 133.21 |
| Web Value | 19.87 | 55.96 | 209.09 |
| Borrowings | 42.61 | 62.29 | 217.79 |
Key Ratios:
- EBITDA Margin: 18.24%
- PAT Margin: 12.12%
- Debt-Fairness Ratio: 0.74
- Value-to-E book: 12.39x
- Submit IPO P/E: 23.3x
Objects of the IPO
The corporate plans to utilise the proceeds as follows:
- Funding long-term working capital necessities – ₹322.46 Crores
- Normal company functions
GK Power IPO Valuation & Peer Comparability
- EPS (FY2025 Submit IPO): ₹6.57
- P/E at higher band (₹153): 23.3x
Peer Comparability:
- Highest P/E: Waaree Energies – ~45x
- Lowest P/E: KPI Inexperienced Power – ~18x
- Business Common: ~28x
GK Power’s valuation of 23.3x is beneath trade common, making it fairly priced in comparison with friends.
Gray Market Premium (GMP)
As per market sources, the GK Power IPO GMP is round ₹22 – ₹25 per share, indicating a possible itemizing achieve of 15-18% over the difficulty value. (Be aware: GMP is unofficial and topic to fluctuations.)
Causes to Put money into GK Power IPO
- Strong Monetary Development – Income grew from ₹285 Cr (FY23) to ₹1,099 Cr (FY25). PAT surged 13x in 3 years.
- Authorities Assist – Operates beneath PM-KUSUM scheme guaranteeing regular demand.
- Robust Margins & Returns – ROE of 63.7% and PAT margin of 12% is wholesome.
- Affordable Valuation – P/E of 23.3x is enticing vs friends.
- Constructive GMP Pattern – Signifies wholesome investor demand.
Threat Components in GK Power IPO
- Excessive Dependence on Govt. Schemes – Enterprise closely tied to PM-KUSUM scheme allocations.
- Rising Debt Ranges – Borrowings rose from ₹42 Cr in FY23 to ₹218 Cr in FY25.
- Buyer Focus – Giant dependence on authorities contracts.
- Coverage & Regulatory Dangers – Any change in renewable insurance policies might impression development.
- Working Capital Intensive – Requires vital upfront capital for EPC tasks.
- Buyers ought to undergo all inside and exterior threat elements at GK Power IPO RHP / DHRP.
Methods to Apply for GK Power IPO?
Buyers can apply by way of:
- ASBA (by web banking of SCSBs like HDFC, ICICI, SBI, and so on.).
- UPI-based purposes by inventory brokers like Zerodha, Groww, Paytm Cash, Angel One.
- Minimal lot measurement: 98 shares (₹14,994).
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Conclusion – Must you Put money into GK Power IPO?
GK Power IPO comes with a robust monetary observe document, cheap valuations, and government-backed demand. Nevertheless, buyers ought to word the dangers of debt ranges, dependence on schemes, and coverage adjustments. Given the enticing valuation in comparison with friends and constructive GMP, this IPO appears good for medium to long-term buyers in addition to itemizing beneficial properties.
Our View: Buyers can Subscribe to this IPO for each itemizing beneficial properties and long-term potential.
FAQs on GK Power IPO
1. What’s the GK Power IPO Date?
The IPO opens on September 19, 2025 and closes on September 23, 2025.
2. What’s the GK Power IPO Value Band?
The worth band is ₹145 – ₹153 per share.
3. What’s the GK Power IPO Measurement?
The IPO measurement is ₹464.26 Crores (₹400 Cr Contemporary + ₹64.26 Cr OFS).
4. What’s the GK Power IPO Lot Measurement?
The lot measurement is 98 shares, requiring a minimal funding of ₹14,994.
5. What’s the GMP of GK Power IPO?
Present Gray Market Premium (GMP) is round ₹22 – ₹25.
6. Who’re the promoters of GK Power?
The promoters are Gopal Rajaram Kabra and Mehul Ajit Shah.
7. Ought to I put money into GK Power IPO?
Sure, contemplating monetary development, cheap valuation, and demand outlook, this IPO is value subscribing to, although dangers ought to be famous.
Disclaimer: This text is for informational functions solely and isn’t a advice to purchase, promote or maintain any shares or apply for any IPO. The securities market is topic to dangers, and readers ought to seek the advice of their monetary advisor earlier than making any funding choices.
