GK Energy Ltd IPOGKENERGY

The IPO opens on 19 Sept 2025 & closes on 23 Sept 2025.

GK Energy Limited was originally incorporated as 'GK Energy Marketers Private Limited', a Private Company dated October 14, 2008, issued by the RoC. Thereafter, on June 3, 2024, the name of Company was changed to 'GK Energy Private Limited' on July 20, 2024. Company was subsequently converted from a Private Company to a Public Company, its name was changed to 'GK Energy Limited' and a fresh Certificate of Incorporation was issued by the RoC on December 2, 2024. The Company is primarily into the business of design, manufacture, supply, transport, installation, testing and commissioning of decentralized solar systems In addition, the Company provide other EPC services, comprising, the erection and installation of water storage and distribution facilities under Jal Jeevan Mission, a Central Government scheme operated through urban local bodies, the supply and installation of solar products for government agencies and rooftop solar solutions to sell photovoltaic cells and solar modules. The Company started business operations into solar water heaters in year 2008. It installed and commissioned 1767 solar home lights and 276 solar street lighting systems for 40 remote villages in Gadchiroli district of Maharashtra in 2013; installed 2 KW solar power plants at 67 zilla parishads e-learning schools in Pune in year 2015; followed with the entrance with the Savitribai Phule Pune University for undertaking projects in renewable energy, energy conservation, energy promotion and utilization to conserve environment by reducing greenhouse gas emission in consultation with the School of Energy Studies. In 2016, Company entered into an agreement with Sanjivani Rural Educational Society for installation of 500 kW Grid-tied Rooftop Solar Photovoltaic System. It installed solar pumps in Chhattisgarh; installed more than 1 MW of solar panels across different projects in a year and commenced business operations in Jharkhand for grid connected rooftop SPV power plants. Later, Company installed solar agricultural pump in Maharashtra in 2019; commenced operations under PM Kusum Component-B Solar Pump scheme in the states of Maharashtra, Haryana and Punjab in 2021. The Company has empanelled with Maharashtra State Electricity Distribution Company Limited for installation of solar rooftops in FY 2025. Company launched the initial public offering of 30,343.790 equity shares of face value of Rs 2 each, by raising funds aggregating to Rs 464.26 Crore, comprising a fresh issue of 26,143,790 equity shares amounting to Rs 400 Cr and offer for sale of 4,200,000 equity shares amounting to Rs 64.26 Cr in September, 2025.

GK Energy Ltd IPO will close on 23 Sept 2025.

<ul><li>The leading pure play provider of the EPC of solar-powered pump systems in Maharashtra under the PM-KUSUM Scheme in terms of pump systems installed as at July 31, 2025.</li><li>Robust Order Book and a growing addressable market for solar-powered pump systems.</li><li>Decentralised infrastructure and localised workforce enable us to operate across broad geographic areas in five states.</li><li>Comprehensive support, from installation to after-sales service, thus ensuring a seamless experience for the farmer and increased customer satisfaction.</li><li>Track record of profitable financial performance and rapidly increasing growth.</li><li>Experienced senior management with in-depth sector expertise.</li><li>Well-positioned to seize opportunities in the rooftop solar market.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Gopal Rajaram Kabra</td> <td>158494540</td> <td>89.71</td> <td>154494540</td> <td>76.17</td> </tr> <tr> <td>2</td> <td>Mehul Ajit Shah</td> <td>6300000</td> <td>3.57</td> <td>6100000</td> <td>3.01</td> </tr> <tr> <td>3</td> <td>Darshana Gopal Kabra</td> <td>1300</td> <td>---</td> <td>1300</td> <td>---</td> </tr> <tr> <td>4</td> <td>Rajaram Kabra</td> <td>1300</td> <td>---</td> <td>1300</td> <td>---</td> </tr> <tr> <td>5</td> <td>Chandrakanta Kabra</td> <td>1300</td> <td>---</td> <td>1300</td> <td>---</td> </tr> <tr> <td>6</td> <td>Ajit Babulal Shaha</td> <td>11428</td> <td>0.01</td> <td>11428</td> <td>---</td> </tr> <tr> <td>7</td> <td>Prachi Mehul Shah</td> <td>11428</td> <td>0.01</td> <td>11428</td> <td>---</td> </tr> </tbody> </table>

<ul><li>We derived Rs.10,873.63 million, Rs.3,743.68 million and Rs.2,580.93 million, equivalent to 99.32%, 91.07% and 90.55% of our revenue from operations for Fiscals 2025, 2024 and 2023, respectively, from the engineering, procurement and commissioning ("EPC") of solar-powered agricultural water pump systems. Any decrease in demand for the EPC of solar-powered agricultural water pump systems could have a material adverse effect on our business, financial condition, results of operations and cash flows.</li><li>Any failure to recover trade receivables could materially and adversely affect our business, financial condition, results of operations and cash flows.</li><li>We had net cash used in operating activities in Fiscals 2025, 2024 and 2023. We expect to experience net cash used in operating activities in the future and we will continue to require working capital financing, which if unavailable could adversely affect our ability to operate our business and implement our growth plans.</li><li>Failure to obtain adequate financing or generate sufficient cash flow to meet our working capital requirements and other liquidity requirements could have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, increasing our borrowings increases our finance costs, thereby adversely affecting our results of operations and cash flows.</li><li>As we are currently a pure play EPC company, we may find it harder to compete with players that currently manufacture solar panels. Failure to compete effectively in the highly competitive solar-powered pump EPC industry could have an adverse effect on our business, results of operations, financial condition and cash flows.</li><li>Our revenue from the EPC for solar-powered pump systems - direct-to-beneficiary sales under the PM-KUSUM Scheme was Rs.9,177.52 million, Rs.3,058.22 million and Rs.2,537.23 million, equivalent to 83.83%, 74.39% and 89.02% of our revenue from operations for Fiscals 2025, 2024 and 2023, respectively. If the PM-KUSUM Scheme is not extended beyond its current end date of March 31, 2026 or replaced by similar state government schemes, it could have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, a significant decrease in the number of farmers selecting us as their vendor under the PM-KUSUM Scheme or similar state government schemes, reductions in the amounts paid per solar-powered pump system installed under the PM-KUSUM Scheme or similar state government schemes, any unforeseen change in our eligibility to participate in the PM-KUSUM Scheme or similar state government schemes or any other adverse changes in the PM-KUSUM Scheme or similar state government schemes could have a material adverse effect on our business, financial condition, results of operations and cash flows.</li><li>We derived Rs.1,656.36 million, Rs.685.29 million and Rs.113.65 million, equivalent to 15.13%, 16.67% and 3.99% of our revenue from operations for Fiscals 2025, 2024 and 2023, respectively, from our top customer in the respective years. The loss of our top customer for Fiscal 2025 and Fiscal 2024 or a material decrease in revenue from it without an equal or more increase in revenue from our other services could have a material adverse effect on our financial condition, results of operations and cash flows.</li><li>We currently conduct our business in the states of Maharashtra, Chhattisgarh, Haryana, Uttar Pradesh, Rajasthan, and Madhya Pradesh. Any sustained downturn in the economy of any of those states, Maharashtra in particular, could reduce demand for solar-powered pump systems and thereby adversely affect our business, financial condition, results of operations and cash flows.</li><li>We rely on a limited number of third-party suppliers for components and materials for our business. A failure by a key supplier to perform could have a material adverse effect on our business, financial condition, results of operations and cash flows.</li><li>Any downgrade of our debt ratings could lead to an increase in our borrowing costs and/or constrain our access to borrowings.</li><li>Significant increases in the costs of key components could have a material adverse effect on our business, financial condition, results of operations and cash flows.</li><li>Any adverse publicity involving us, or any of our services, may impair our reputation, dilute the impact of our branding and marketing initiatives and adversely affect our business, financial condition, results of operations and cash flows.</li><li>We have experienced rapid growth in our business. Our revenue from operations grew by 166.32% in Fiscal 2025 compared to Fiscal 2024, and increased at a compound annual growth rate of 95.99% between Fiscals 2023 and 2025. However, our rapid growth may not be sustainable and even if it is sustained, we may fail to manage our growth effectively.</li><li>Any adverse changes in the conditions affecting the agricultural sector could adversely affect demand for solar-powered pump systems and thereby adversely affect our business, results of operations, financial condition and cash flows.</li><li>Failure to maintain quality and performance guarantees under our contracts could have a material adverse effect on our business, financial condition, results of operations and cash flows.</li><li>Our Order Book is not necessarily an indication of future revenues. Our estimated revenue from allocations granted to us by SNAs/SIAs under the PM-KUSUM Scheme and similar state government scheme(s) could be higher or lower than the estimated amount in our Order Book due to changes in farmers' preferences for the size of the pump. Modifications to the scope of work or reductions or partial or full cancellations of other EPC contracts in our Order Book could have a material adverse effect on our financial condition, results of operations and cash flows.</li><li>If we fail to obtain product and performance warranties from suppliers for the required scope and period under our contracts, we could be required to compensate our customer for any defects in products, which could have a material adverse effect on our financial condition, results of operations and cash flows.</li><li>Any failure to maintain the intellectual property used by us could adversely affect our competitive position, business, financial condition and results of operation. We rely on a trademark license agreement for branding and marketing. If the said trademark license agreement is terminated, our business, results of operations, financial condition and cash flows may be adversely affected.</li><li>Our Company is involved in certain tax proceedings, the outcome of which may have an adverse effect on our business, results of operations, financial condition and cash flows.</li><li>We did not meet the required minimum expenditure on Corporate Social Responsibility ("CSR") activities for Fiscal 2024.</li><li>The success of our business depends substantially on our Promoters and other Key Managerial Personnel and Senior Management Personnel. The loss of or our inability to attract or retain such persons could adversely affect our business, financial condition, results of operations and cash flows.</li><li>In order to retain flexibility and control costs, we engage third-party installation and commissioning service providers for the performance of our EPC services. If we are unable to obtain the services of third-party installation and commissioning service providers at reasonable rates it will have an adverse effect on our business, financial condition, results of operations and cash flows.</li><li>We compete with certain of our suppliers of materials and/or services for customers and orders, which heightens the potential adverse impact that competitive measures undertaken by our suppliers may have on our business, results of operations, financial condition and cash flows.</li><li>Failure to provide bank guarantees and/or performance guarantees to satisfy payment obligations could have a material adverse effect on our business, financial condition, results of operations and cash flows.</li><li>We plan to backward integrate by manufacturing our own solar panels. We have not yet obtained binding quotations from vendors in relation to the various supplies and machines we need to establish this new manufacturing plant. If the cost to set up this new manufacturing plant exceeds the economic benefits of setting up this facility, it could adversely affect our results of operations, financial condition and cash flows. We plan to fund the cost of setting up this new manufacturing plant through internal accruals and loans from banks. We have yet to receive approvals for sufficient loans to help to fund the cost of establishing this new manufacturing plant and there can be no assurance that such funding will be available on commercially acceptable terms. We do not have experience in manufacturing solar panels and we could lose a significant portion of our investment in our solar panel manufacturing facility, which could adversely affect our financial condition, results of operations and cash flows.</li><li>One of our strategies is to diversify our sources of revenue by installing more rooftop solar systems. Failure to manage this expansion could adversely affect our business, financial condition, results of operations and cash flows.</li><li>One of our strategies is to replicate our success in Maharashtra in the high-potential states of Haryana, Rajasthan, Uttar Pradesh and Madhya Pradesh. Failure to manage this expansion effectively could adversely affect our business, financial condition, results of operations and cash flows.</li><li>The growth of the EPC of solar-powered pump systems in India may face challenges including adverse changes in government regulations and policies, and volatility in the prices of raw materials, which could adversely affect our EPC business for solar-powered pump systems, financial condition, results of operations and cash flows.</li><li>The solar module manufacturing industry in India could be adversely affected by changes in import-export regulations, foreign currency fluctuations, changes in government policies, an increase in competition, unavailability of land for solar power plants, constraints in supply of and increases in the prices of components, and decreases in foreign demand, which could adversely affect our planned solar manufacturing business, financial condition, results of operations and cash flows.</li><li>The growth of India's solar rooftop sector may face continued challenges, such as ineffective state policies, poor consumer creditworthiness, enforcement issues, and difficulties in integrating rooftop energy into electrical grids, which could adversely affect our rooftop solar business, financial condition, results of operations and cash flows.</li><li>Our financing agreements contain covenants that limit our flexibility in operating our business.</li><li>A substantial portion of our assets are hypothecated or mortgaged in favour of lenders as security for some of our fund-based and non-fund-based borrowings. Our lenders may enforce the security in the event of our failure to service our debt obligations, which could adversely affect our business, financial condition and results of operations.</li><li>Our Promoters have provided personal guarantees for certain loan facilities obtained by our Company. Any failure or default by our Company to repay such facilities in accordance with their terms could trigger repayment obligations which may adversely affect our Promoters and our business and operations.</li><li>Failure to obtain and maintain all required licenses, approvals, registrations, consents and permits could materially and adversely affect our business, financial condition, results of operations and cash flows.</li><li>Injury to people and property caused by our operations could materially and adversely affect our business, financial condition, results of operations and cash flows.</li><li>Inadequate insurance coverage could have a material adverse effect on our results of operations, financial condition and cash flows.</li><li>Problems with our information technology systems could materially and adversely affect our business, financial condition, results of operations and cash flows.</li><li>We rent, lease or license all of our warehouses. If our leases or licenses are terminated or we are unable to renew our such arrangements on commercially acceptable terms, it could have an adverse effect on our results of operations, cash flows and financial condition.</li><li>Our business is subject to seasonal fluctuations. Our revenue from operations is higher in the third and fourth quarters of each fiscal year than in the first two quarters. Any slowdown in demand for our services during the third and fourth quarters of a fiscal year could have a material adverse effect on our financial condition, results of operations and cash flows for that fiscal year.</li><li>Any damages caused by fraud, theft or other misconduct by our employees could adversely affect our financial condition, results of operations and cash flows.</li><li>Any realisation of our contingent liabilities could adversely affect our financial condition, results of operations and cash flows.</li><li>If we fail to maintain an effective system of internal controls, we may not be able to successfully manage or accurately report our financial risks.</li><li>Failure to keep our technical knowledge confidential could erode our competitive advantage and have a material adverse effect on our business, financial condition, results of operations and cash flows.</li><li>Our ability to pay dividends on the Equity Shares will depend on future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in our financing arrangements.</li><li>We have entered into, and will continue to enter into, related party transactions. We cannot assure you that we could not have achieved more favourable terms had such transactions not been entered into with related parties.</li><li>Our Promoters, certain of our Directors, Key Managerial Personnel and Senior Management may have interests other than reimbursement of expenses incurred and normal remuneration or benefits.</li><li>Our Promoters will continue to exercise significant influence over our Company after the completion of the Offer. There is no assurance that our Promoters will act to resolve any conflicts of interest in our Company's or our other Shareholders' favour.</li><li>Our Directors, Promoters and Group Companies may be involved in ventures that are in the same line of business that could lead to conflicts of interest with our business.</li><li>Our funding requirements and the proposed deployment of Net Proceeds have not been appraised, and our management will have broad discretion over the use of the Net Proceeds. Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders' approval.</li><li>The average cost of acquisition of Equity Shares by the Selling Shareholders could be less than the Offer Price.</li><li>We have issued Equity Shares in the last 12 months prior to the date of this Red Herring Prospectus at prices that could be lower than the Offer Price.</li><li>We have included certain non-GAAP financial measures and certain statistical information related to our business, financial condition, results of operations and cash flows in this Red Herring Prospectus. These non-GAAP financial measures and statistical information could vary from any standard methodology that is applicable across the industry we compete in, and therefore may not be comparable with non-GAAP financial measures or statistical information of similar nomenclature computed and presented by other companies.</li><li>The requirements of being a publicly listed company could strain our resources.</li><li>There have been certain instances of delays in payment of statutory dues by us in the past. Any delay in payment of statutory dues by us in future may result in the imposition of penalties and in turn may have an adverse effect on our business, financial condition, results of operation and cash flows.</li></ul>

The Issue type of GK Energy Ltd is Book Building.

The minimum application for shares of GK Energy Ltd is 98.

The total shares issue of GK Energy Ltd is 30343791.

Initial public offering of up to 30,343,791 equity shares of face value of Re. 2 each ("Equity Shares") of GK Energy Limited (The "Company" or The "issuer") for cash at a price of Rs. 153 per equity share (Including a Share Premium of Rs. 151 per Equity Share) ("Offer Price") aggregating up to Rs. 464.26 crores (The "Offer") comprising a fresh issue of up to 26,143,791 equity shares of face value of Re. 2 each aggregating up to Rs. 400.00 crores by the company (The "Fresh Issue") and an offer for sale of up to 4,200,000 equity shares of face value of Re. 2 each aggregating up to Rs. 64.26 crores by the promoter selling shareholders (The "Offer for Sale"). the offer shall constitute [*]% of the post-offer paid-up equity share capital of the company.