IPO Listings: Saatvik Green Energy and GK Energy Debut on Stock Exchange; Only One Ends in Profit

Two more green energy companies debuted on the stock market on Friday, September 26. The IPOs of Saatvik Green Energy and GK Energy were listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) today. While GK Energy debuted at a premium of up to 12%, while Saatvik Green Energy witnessed a weak listing.

GK Energy Share Price

GK Energy, a manufacturer of solar-powered agricultural water pump systems, made a strong entry into the stock market on Friday. The company's shares were listed on the NSE at Rs 171 per share, representing an 11.76% premium over the issue price of Rs 153. On the BSE, it debuted at Rs 165.20, representing a 7.97% premium over the issue price.

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GK Energy's initial public offering (IPO) opened to investors with a total issue size of Rs 464.26 crore. This included a fresh issue of Rs 400 crore and an offer-for-sale (OFS) of Rs 64.26 crore. The company had set a price band of Rs 145 to Rs 153 per share, and the stock’s listing was strong following strong investor demand.

The company will use the proceeds raised from the IPO to fund its long-term working capital requirements and for general corporate purposes. It aims to further strengthen its business, pursue expansion plans and deleverage its balance sheet.

Saatvik Green Energy Share Price

The Saatvik Green Energy’s shares had a flat listing. The company's shares listed on the National Stock Exchange (NSE) at Rs 465 per share, the same as the issue price. On the Bombay Stock Exchange (BSE), it debuted at Rs 460 per share, a 1.08% discount to the issue price. The IPO application size was 32 shares. Consequently, investors who received allotments in the Saatvik Green Energy IPO did not make any profit on the listing.

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The company's initial public offering (IPO) raised a total of Rs 900 crore, comprising a fresh issue of Rs 700 crore and an offer-for-sale (OFS) of Rs 200 crore, which was sold by promoters Pramod Kumar and Sunila Garg.

The company plans to distribute a significant portion of the funds raised through the fresh issue to its subsidiary, Saatvik Solar Industries Pvt Ltd. Approximately Rs 477.23 crore will be used to set up a 4 GW solar PV module manufacturing facility. Additionally, Rs 166.44 crore will be used to repay debt. Around Rs 11 crore will be used for loan repayment at the parent level, and the remaining amount will be utilised for general corporate purposes.