The IPO is intended to be a mix of fresh issue of shares up to Rs 500 crore with a face value of Rs 2 and an offer for sale (OFS) of up to 84 lakh equity shares by selling shareholders, the DRHP filing showed.
The OFS includes the sale of up to 80 lakh equity shares by Gopal Rajaram Kabra, and up to 4 lakh by Mehul Ajit Shah.
GK Energy intends to consider, in consultation with the book- running lead managers (BRLMs), a pre-IPO placement of specified securities, aggregating up to Rs 100 crore, the DRHP filing showed. In case the pre-IPO placement is completed, the said amount raised pursuant to the pre-IPO placement would be reduced from the fresh issue, the company stated.
The net proceeds from the fresh issue to the extent of Rs 422.46 crore would be used to fund the company’s long-term working capital requirements and general corporate purposes, GK Energy said in its DRHP filing.
The issue will be made through the book-building process, wherein not more than 50% is reserved for qualified institutional buyers (QIBs), and at least 15% and 35% of the net offer will be reserved for non-institutional investors (NIIs) and retail individual investors, respectively.The equity shares of the company are proposed to be listed on the National Stock Exchange (NSE) and BSE. GK Energy specialises in the EPC of solar-powered pump systems, catering to both direct beneficiaries and other customers. The company also delivers a range of additional EPC services, such as the setup and installation of water storage and distribution systems under the Jal Jeevan Mission, a central government initiative implemented via urban local bodies.
The company is also engaged in trading activities, selling photovoltaic (PV) cells, solar modules manufactured by third parties, and other related products. As of November 30, GK Energy leases 13 warehouses spread across three states.
GK Energy’s order book was Rs 759.18 crore as of October 1. The company’s revenue from operations increased by 44.23% year-on-year to Rs 411.09 crore in FY24. Profit after tax increased by 258.04% year-over-year to Rs 36.09 crore in FY24.
The company has appointed IIFL Capital Services and HDFC Bank as its book-running lead managers, while Link Intime India Private Ltd is the registrar of the issue.
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