GK Energy Limited files Addendum to DRHP amidst strong financial growth – EQ
In Short : GK Energy Limited has filed an addendum to its Draft Red Herring Prospectus (DRHP) ahead of its ₹500 crore IPO. The company reported strong financial growth, with a 3.8x increase in revenue, 11.6x rise in EBITDA, and 13.2x jump in profit after tax. The IPO includes a fresh issue and an Offer for Sale, aiming to support expansion and working capital needs.
In Detail : PUNE, India — Pune-based engineering, procurement, and commissioning (EPC) player of solar-powered pump systems, GK Energy Limited, has filed an addendum to DRHP with SEBI. The company is India’s largest pure-play EPC provider of solar-powered agricultural water pump systems by installations.
GK Energy has reported remarkable growth across all key financial metrics over the past two fiscal years: • Revenue from operations surged 3.8x, rising from ₹285.03 crore in FY23 to ₹1,094.83 crore in FY25.
- Operating EBITDA witnessed an 11.6x jump from ₹17.18 crore in FY23 to ₹199.68 crore in FY25.
- Profit after tax (PAT) soared 13.2x from ₹10 crore in FY23 to ₹133.20 crore in FY25.
- Leveraging its asset-light business model, the Company has continued to deliver exceptional returns. Return on Equity (RoE) rose to 63.71% in Fiscal 2025 from 50.73% in Fiscal 2023, while Return on Capital Employed (RoCE) improved significantly to 55.65% in Fiscal 2025, up from 29.36% in Fiscal 2023.
Originally filed on December 13, 2024, the DRHP outlines an IPO with a face value of ₹2 per equity share. The issue comprises a fresh issue of shares worth ₹500 crore and offer for sale (OFS) of up to 84,00,000 equity shares by existing shareholders. Of the net proceeds from the fresh issue, ₹422.46 crore will be allocated towards long-term working capital requirements and general corporate purposes.
As of September 30, 2024, 1,342,327 solar-powered pump systems were approved under Component B of the PM-KUSUM Scheme, a key initiative of the Government of India. Of the 499,319 installations completed by empanelled providers, GK Energy fulfilled 42,778 units, accounting for 8.56% of the executed orders.
The company’s order book for solar-powered pump systems stood at ₹714.28 crore as of March 31, 2025, underlining sustained demand and execution capability.
IIFL Capital Services Limited and HDFC Bank Limited are acting as the book-running lead managers to the issue. Link Intime India Private Limited has been appointed as the registrar.
