GK Energy IPO GMP Today: Strong Demand, Subscription Status, and Should You Invest?
The stock market buzzes with new IPOs every day, and investors are currently eyeing the GK Energy IPO GMP. Companies in the renewable energy sector have high growth potential, which is why both retail and institutional investors are excited about the GK Energy IPO. The IPO opened on September 19th and is scheduled to close on September 23rd. In this article, we’ll discuss the GK Energy IPO GMP today, its subscription status, and analysts’ views, to give you clarity on whether it’s worth applying for this IPO.
GK Energy IPO: Issue Details and Purpose
The size of the GK Energy IPO issue has been set at ₹464.26 crore, out of which ₹400 crore will be through a fresh issue and ₹64.26 crore will be through promoters’ offer for sale (OFS). The price band has been set by the company at ₹145 to ₹153 per share. The minimum lot size is 98 shares, so the retail investors have to invest a minimum of ₹14,994.
According to the company’s strategy, the biggest chunk of the funds generated through the IPO, about ₹322.5 crore, will go towards arranging working capital requirements, and the balance amount has been reserved for general corporate purposes. This IPO will be listed on both NSE and BSE. Allotment is expected to be finalized on 24 September and listing is scheduled to take place on 26 September.
GK Energy IPO Subscription Status Day 2
Subscription figures indicate a strong response to the GK Energy IPO. By the end of Day 1, the issue was subscribed 2.69 times. However, by the evening of Day 2, the situation became even more impressive. The subscription status also reflects strong investor interest. The IPO was subscribed a total of 6.41 times, with 14.22 crore bids received against only 2.12 crore shares on offer. Retail investors oversubscribed it 6.84 times, non-institutional investors (NIIs) responded 10.05 times, and qualified institutional buyers (QIBs) also expressed interest 2.90 times.
This clearly shows that the GK Energy IPO is receiving strong demand in the market and investor confidence is strong.
GK Energy IPO GMP Today
The most buzz is surrounding the GK Energy IPO GMP today. The IPO’s premium in the grey market is around ₹22, which suggests a listing price of around ₹175. This is a 14.38% rise from the higher closing price of ₹153.
These numbers clearly show that the listing gains of the IPO look very promising, which is a good sign for intra-day traders. It is not correct to make decisions purely on the basis of GMP. Long-term investors should know the fundamentals of the company, business model, and growth prospectus.
About GK Energy Limited
GK Energy Limited’s journey began in 2008 and today provides EPC services for solar-powered agricultural water pump systems. Under the PM-KUSUM scheme, the company provides farmers with end-to-end solutions, including survey, design, installation, and maintenance.
The company’s business model is asset-light, procuring its components, such as solar panels and pumps, from specialized vendors and marketing them under the “GK Energy” brand. This model provides both capital efficiency and scalability.
Analysts’ View: Apply or Not?
Brokerages like Angel One and Geojit have given the GK Energy IPO positive ratings. Angel One says the company’s valuation is attractive, as its post-IPO P/E will be 23.3x, which is lower than its peers. Revenue and profit growth in FY2024 is also impressive.
Geojit Investments also believes that a strong order book, government-backed demand, and growth in the renewable energy sector make GK Energy a strong bet. Both brokerages have given the IPO a “Subscribe” rating, especially for investors with a medium-to-long term view.
GK Energy IPO GMP and Saatvik Green Energy IPO Buzz
Interestingly, another IPO, Saatvik Green Energy, is currently in the market. However, the GK Energy IPO is clearly leading in terms of demand. GK Energy’s IPO achieved nearly 6 times subscription on Day 2, indicating strong investor sentiment. The Saatvik Green Energy IPO saw a modest response, while GK Energy also successfully raised ₹139 crore from anchor investors.
This clearly indicates that investors’ preference lies with proven players in the renewable energy sector, and the strong response to the GK Energy IPO GMP today has further solidified this narrative.
Final Verdict: GK Energy IPO GMP and Should You Invest?
If you’re a retail investor looking for short-term listing gains, the GK Energy IPO GMP signals positive results. However, if you’re looking for a long-term view, the company’s growth outlook is strong in the renewable energy sector. Government support, initiatives like the PM-KUSUM scheme, and the company’s strong execution capabilities make this a promising IPO.
Disclaimer:
The views and recommendations above are those of individual analysts or brokerage companies, not US News Weeks. We advise investors to check with certified experts before making any investment decisions.
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