GK Energy Ltd. Files Addendum to DRHP Amidst Robust Financial Performance

GK Energy Ltd. a firm specialising in solar-powered agricultural water pump systems, has filed an addendum to its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).

As per the firm, the move signals the company's readiness to take its next strategic leap via the public markets amid a phase of strong financial performance and growing market presence.

Originally filed on December 13, 2024, the DRHP outlines a public offering with a face value of INR 2 per equity share. The IPO comprises a fresh issue of equity shares aggregating up to INR 500 crore and an Offer for Sale (OFS) of up to 84,00,000 equity shares by existing shareholders.

As per the updated filing, GK Energy intends to utilise INR 422.46 crore from the fresh issue towards long-term working capital requirements and other general corporate purposes.

The company has shown an impressive financial trajectory over the past two fiscal years. Revenue from operations soared nearly 3.8 times from INR 285.03 crore in FY23 to INR 1,094.83 crore in FY25.

Operating EBITDA increased by 11.6 times, jumping from INR 17.18 crore in FY23 to INR 199.68 crore in FY25. Profit after tax (PAT) demonstrated an equally remarkable rise of 13.2 times, going from INR 10 crore in FY23 to INR 133.20 crore in FY25.

Leveraging an asset-light business model, GK Energy has been able to deliver substantial shareholder value. The company’s Return on Equity (RoE) stood at 63.71 percent for FY25, up from 50.73 percent in FY23. Similarly, Return on Capital Employed (RoCE) rose to 55.65 percent in FY25, from 29.36 percent two years ago.

GK Energy is the largest pure-play EPC provider of solar-powered agricultural water pump systems in India by installations. The company's growth is aligned with the central government's push for sustainable agriculture under the PM-KUSUM Scheme.

As of September 30, 2024, 1,342,327 solar-powered pump systems had been approved under Component B of the scheme. Out of 499,319 completed installations by empanelled vendors, GK Energy fulfilled 42,778 units, translating to a substantial 8.56 percent market share.

Reflecting continued demand and execution strength, the company’s order book for solar-powered pump systems stood at INR 714.28 crore as of March 31, 2025.

The IPO is being managed by IIFL Capital Services Ltd. and HDFC Bank Ltd. as the Book Running Lead Managers. Link Intime India Pvt. Ltd. has been appointed as the registrar to the issue.

With strong government backing for renewable energy and a rapidly expanding market, GK Energy's upcoming IPO is expected to garner keen investor interest.