GK Energy Ltd. Files Addendum to DRHP Amidst Robust Growth

GK Energy Ltd., a prominent player in India's solar-powered agricultural water pump systems sector, has filed an addendum to its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This development comes as the company navigates a phase of strong financial performance and an expanding market presence, signalling its strategic readiness to access the public markets.

Strong Financial Trajectory Revealed

The solar pump EPC firm has reported a strong financial performance over the past two fiscal years, as per its updated regulatory filing. Revenue from operations witnessed a significant surge, rising nearly 3.8 times from ₹285.03 crore in FY23 to ₹1,094.83 crore in FY25. This growth was accompanied by substantial improvements in profitability metrics. Operating EBITDA increased 11.6 times, climbing from ₹17.18 crore in FY23 to ₹199.68 crore in FY25. Profit after Tax (PAT) showed an equally remarkable rise of 13.2 times, escalating from ₹10 crore in FY23 to ₹133.20 crore in FY25. Return on Equity (RoE) stood at 63.71 percent for FY25, an increase from 50.73 percent in FY23. Similarly, Return on Capital Employed (RoCE) rose to 55.65 percent in FY25, up from 29.36 percent two years prior.

Market Position and Scheme Alignment

GK Energy, India’s largest pure-play EPC provider of solar-powered agricultural pump systems by installations, has aligned its growth with the government’s PM-KUSUM Scheme. As of September 30, 2024, the company held an 8.56% market share under Component B, with 42,778 of 499,319 completed installations. Backed by strong demand, its order book stood at ₹714.28 crore as of March 31, 2025.

IPO Details and Funding Utilisation

The original DRHP was filed on December 13, 2024, outlining a public offering with a face value of ₹2 per equity share. The proposed IPO structure includes a fresh issue of equity shares aggregating up to ₹500 crore and an Offer for Sale (OFS) of up to 84,00,000 equity shares by existing shareholders.

According to the updated filing, GK Energy plans to utilise ₹422.46 crore from the fresh issue proceeds. These funds are earmarked for long-term working capital requirements and other general corporate purposes. The IPO is being managed by IIFL Capital Services Ltd. and HDFC Bank Ltd. as the Book Running Lead Managers, with Link Intime India Pvt. Ltd. appointed as the registrar to the issue. With strong government backing for renewable energy initiatives and a rapidly expanding market for solar pumps, the upcoming IPO is anticipated to generate keen investor interest

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