Two listings - one premium, one discount

GK Energy did well given the market moods. As against the IPO price of Rs.153, the stock got listed on the BSE at Rs.165 and rose to an intraday high at Rs.175.95.

The IPO had received a fantastic response, overall subscribing 89.6x with QIBs taking the lions share at 186.29x, HNIs at 122.73x and Retail at 20.79x.

GK Energy is a 17 year old solar agri pumps EPC company, empanelled as a vendor under PM KUSUM Component-B scheme, with over 90% of Rs. 1,100 cr revenue generated from Maharashtra. It enjoys 15% market share in Maharashtra, under the scheme.

In our IPO Analysis, we had concluded - GK Energy IPO looks good for the vast opportunity in solar pump sector and its asset light business model.

Another company got listed - Saatvik Energy. But unlike GK, it did not do too well. As against the IPO price of Rs.465, it got listed at a discount atRs.460 and continues to stay below the IPO price, now at Rs.450 levels.

The IPO did just about ok with overall subscription at 6.57x, followed by QIBs at 10.84x, HNIs at 10.04x and Retail at 2.66x.

The company is promoted by IIT-D and LSE educated Garg-brothers, manufactures solar photovoltaic (PV) modules, with 3.7 GW installed capacity in Ambala (Haryana), as of 31.3.25 or 1.7 GW effective capacity with 84% utilization.

In our IPO Analysis, we had concluded - Even accounting for lower margin, Saatvik Energy valuation multiple has room to rise by about 20%, making the IPO an ‘apply’.