GK Energy Limited is provider of engineering, procurement and commissioning ('EPC') services for solar-powered agricultural water pump systems (which are also referred to as solar-powered pump systems) under Component B of the Central Government's Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan scheme(the 'PM-KUSUM Scheme'). They offer farmers an end-to-end single source solution for the survey, design, supply, assembly and installation, testing, commissioning and maintenance of solar-powered pump systems. They have been empanelled as a vendor under the Ministry of New and Renewable Energy for the PM-KUSUM Scheme in the states of Maharashtra, Haryana, Rajasthan, Uttar Pradesh and Madhya Pradesh. As at July 31, 2025, the five states of Maharashtra, Haryana, Rajasthan, Uttar Pradesh and Madhya Pradesh comprised 86% of the total number of solar-powered pump systems approved for subsidies under Component B of the PM-KUSUM Scheme. In addition, they are also empanelled under various state government schemes such as Maharashtra's Magel Tyala Saur Krushi Pump Yojana, Madhya Pradesh's Pradhan Mantri Krishak Mitra Surya Yojana and Chhattisgarh's Saur Sujala Yojana. As at July 31, 2025, 1,272,758 solar powered pump systems had been approved under Component B of the PM-KUSUM Scheme, and as at that date empanelled providers had completed 8,48,330 of those orders. They completed 62,559, or 7.37%, of those 8,48,330 orders. Apart from the PM-KUSUM Scheme, as at July 31, 2025, they have installed 34,539 other solar-powered pump systems. Company also offer other EPC services, comprising (i) the erection and installation of water storage and distribution facilities under Jal Jeevan Mission, a Central Government scheme operated through urban local bodies, (ii) the supply and installation of various solar products for government agencies and (iii) rooftop solar solutions (together,'Other EPC Services'). In addition, they sell photovoltaic ('PV') cells and solar modules manufactured by third parties and other miscellaneous products ('Trading Activities'). Company currently operates an asset-light business model. They source solar panels, pumps and various other components of solar-powered pump systems under the 'GK Energy' brand from different specialised vendors. However, they are planning to backward integrate the business by manufacturing their own solar panels, which accounted for the largest component of the direct costs of the EPC of direct-to-beneficiary solar-powered pump systems in Fiscals 2025, 2024 and 2023. As per financial performance, GK Energy Limited has posted total income / net profits of Rs 285.45 Cr / 10.08 Cr (FY23), Rs 412.31 Cr / Rs 36.09 Cr (FY24) and Rs 1,099.18 Cr / 133.21 Cr (FY25). So as per previous financials data, company has shown exceptional sales growth, and as at August 15, 2025, they had an Order Book of Rs 10,289.64 million consisting of an SPPS Order Book of Rs 10,088.81 million and orders for rooftop solar systems of Rs 200.83 million. Company has an average EPS of Rs 4.75 and average RoNW of 61.81% for last three fiscals. Issue is priced at a P/BV of 12.39 as per NAV of Rs 12.35/- as on 31.03.25. If we attribute latest earnings of FY23, FY24 and FY25 on equity post issue, then asking price is at a P/E of around 307.85, 85.98 and 23.30 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, IIFL Capital Services Limited and HDFC Bank Limited are associated with this IPO, and have handled 49 IPOs in last three fiscal years. ( As on 19.09.25 ) As per financials, GK Energy Limited has shown good sales growth, RoNW is 63.71% and P/E is 307.85, 85.98 and 23.30 respectively as per FY23, FY24 and FY25 earnings. So issue looks fully priced and order Book as on 15.08.25 is Rs 10,289.64 million. Company is provider of engineering, procurement and commissioning ('EPC') services for solar-powered agricultural water pump systems, which is highly competitive & growing business segment. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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