GK Energy IPO Day 2: Subscription Status and Latest GMP Trends
The GK Energy IPO opened on September 19, 2025, priced between ₹145-₹153 per share. On its first day, demand shot up. It was subscribed about 2.57 times over the shares on offer.
Now on Day 2, things are interesting. The grey market premium (GMP) that showed huge gains is cooling. It dropped from ~22-30% to about 13-14% over the issue price of ₹153. We see strong traction from all investor groups, retail, institutional, high net worth.
We explore Day 2 subscription data. We track how GMP has moved. We weigh what this means for investors. We also flag what to watch out for.
Company Background: GK Energy
GK Energy is in the business of solar energy solutions, mainly focused on solar-powered agricultural water pump systems under government schemes like PM-KUSUM. They provide end-to-end services: survey, design, supply, installation, commissioning, and maintenance. The firm uses an asset-light model: it sources components like pumps and solar panels from vendors and brands them under “GK Energy.”
The company has strong presence in states such as Maharashtra, Uttar Pradesh, Rajasthan, Haryana, Chhattisgarh. Their order book is growing.
IPO Details
- Total size: ~ ₹464.26 crore. This includes a fresh issue of ~₹400 crore and offer-for-sale (OFS) of ~₹64.26 crore.
- Price band: ₹145 to ₹153 per share.
- Lot size / minimum bid: 98 shares (≈ ₹14,994 at upper price band).
- Issue dates: Subscription open from September 19 to September 23, 2025. Allotment expected ~September 24. Listing likely ~September 26.
- Managers: Book running lead managers are IIFL Capital Services and HDFC Bank; registrar is MUFG Intime India.
- Use of funds: Majority of fresh issue (~₹322.5 crore) for long-term working capital, rest for general corporate purposes.
Day 1 Recap: Subscription Performance
On Day 1:
- Overall subscription was 2.57× the shares on offer.
- Categories:
- Retail investors put in strong bids.
- Non-institutional investors (NIIs) also showed good demand.
- Qualified Institutional Buyers (QIBs) subscribed ~2.3× to ~2.4×.
This shows balanced interest. All categories were active.
Day 2 Subscription Status
By midday on Day 2:
- Overall subscription jumped to about 4.4× the issue size.
- Retail portion was booked ~4.95×.
- NIIs ~5.84×.
- QIBs ~2.34×.
So we see that retail and NIIs are pushing demand higher. QIBs are less aggressive but still oversubscribed.
Grey Market Premium (GMP) Trends
The GMP gives a sense of how much unlisted trade is valuing the IPO above its issue price. It is not official, but many watch it.
- On Day 1, GMP was very strong – around 22-30% above issue price.
- On Day 2, GMP has cooled to about 13-14% above issue price (₹153).
- Some sources put the GMP at ₹22, which would imply an expected listing price near ₹175. That is about 14-16% gain over the upper band.
The drop in GMP means the market’s early enthusiasm is moderating a bit. But it’s still healthy.
Factors Driving Investor Interest
We see several reasons for the strong demand:
- Government schemes: The PM-KUSUM scheme and other state solar pump programs are boosting demand for GK Energy’s services.
- Clean / renewable energy trend: India is pushing solar and green energy. Investors like companies aligned with those themes. GK Energy fits.
- Valuation: At upper price band, the P/E is seen by some analysts as fair or even attractive compared to peers.
- Strong track record: The company has shown revenue growth, a growing order book, and operational experience.
Risks and Concerns
Even though things look good, there are risks. We should keep them in mind.
- Dependency on solar pump EPC business: Huge share of revenue comes from solar pump projects. If demand falls, company is exposed.
- Regional exposure: Operations are concentrated in some states. Weakness or policy changes in these could hit business.
- Supplier dependence & cost risks: Since GK Energy sources many components externally, delays or cost increases could impact margins.
- Competition & policy risk: Other players in solar EPC can reduce margins. Also, changes in government subsidy, tariffs, or policy support can change the outlook.
Conclusion
GK Energy’s IPO is attracting strong interest. Subscription is rising fast. GMP remains positive, though softened from its peak. For investors, there’s a case to subscribe if one is comfortable with risk. The company has good growth drivers. But one must watch out for policy shifts, supply chain issues, and concentrated revenue sources.
If you plan to apply, do so after evaluating both upside potential and the risks. The listing is expected to reflect how well demand holds up in Days 2 and 3.
FAQS:
Running GMP means the extra price buyers are ready to pay for IPO shares in the grey market before listing. It shows market demand.
Yes, you can sell IPO shares on the listing day once trading begins. Many investors book profits on that day if the price is higher.
A high GMP often shows strong demand for the IPO. It may mean a good listing gain, but prices can still change after shares list.
Disclaimer:
This content is for informational purposes only and is not financial advice. Always conduct your research.
