GK Energy IPO, which garnered significant interest during its bidding period, with subscriptions crossing over 90 times, is set to enter bourses tomorrow, September 26, and is also likely to attract the same enthusiasm as the grey market premium signals a healthy entry for the stock.
According to market sources, the company’s shares are commanding a grey market premium of ₹25 ahead of listing. Based on the company’s upper band issue price of ₹153 and the current GMP, the estimated listing price of the GK Energy IPO stands at ₹178 per share, 16.33% above the issue price.
The grey market premium represents the expected difference between an IPO’s issue price and its anticipated listing price in the unofficial market. However, it’s important to remember that GMP is a preliminary indicator and should not be the sole factor in making investment decisions.
GK Energy IPO details
During its bidding period between September 19 and 23, the IPO received a strong response from all sections of investors, with bids coming in for 198 crore shares as against the offered shares of 2.12 crore, resulting in a subscription of 93.58 times, as per the exchange data.
The retail investors’ portion was subscribed 21.78 times, while the NII and QIB portions were booked 128.56 times and 193 times, respectively.
The mainboard IPO, valued at ₹464.26 crore, is a combination of a fresh issue of 2.61 crore shares aggregating to ₹400 crore and an offer for sale of 0.42 crore shares aggregating to ₹64.26 crore. The price band of the issue was set between ₹143 and 153 per share.
The company proposed to use proceeds from the issue towards working capital requirements and general corporate purposes.
About GK Energy
GK Energy is a pure-play Engineering, Procurement, and Commissioning (EPC) provider of solar-powered agricultural water pump systems, operating through two primary sales channels: direct-to-beneficiary and institutional sales.
Direct-to-beneficiary sales include EPC services for GK Energy-branded solar-powered pump systems delivered to farmers who select the company as a vendor via portals managed by agencies appointed under the Government’s Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM Scheme) and similar state-level programs and EPC services for GK Energy-branded solar dual water pump systems supplied to local government bodies.
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