GK Energy sets IPO price band at 145–153 for Rs 465-crore issue

New Delhi: Solar-powered agricultural water pump systems provider GK Energy on Tuesday announced a price band of Rs 145 to Rs 153 per share for its upcoming Rs 465-crore initial public offering (IPO).

The company's IPO will be open for public subscription from September 19 to 23, and the one-day bidding for anchor investors will be open on September 18, according to an announcement.

The Pune-based firm's offering is a combination of fresh issue of shares worth Rs 400 crore and an offer-for-sale (OFS) of 42 lakh equity shares, worth Rs 65 crore at the upper end, by selling shareholders. This aggregates the total issue size to Rs 465 crore.

Proceeds from the fresh issue to the extent of Rs 322.5 crore will be utilised for funding the company’s long-term working capital requirements, and the balance for general corporate purposes.

The company is India's largest pure play provider of engineering, procurement and commissioning (EPC) services for solar-powered agricultural water pump systems. It offers 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.

In terms of issue allocation, 50 per cent of the IPO is reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors.

Further, investors can bid for a minimum of 98 shares and in multiples of 98 shares thereafter.

IIFL Capital Services and HDFC Bank are the book-running lead managers to the offer.