GK Energy Ltd. IPO

We are primarily a pure play engineering, procurement and commissioning (“EPC”) provider of solar-powered agricultural water pump systems, which comprises direct-to-beneficiary sales and sales to others. Direct-to-beneficiary sales comprise (i) the EPC of GK Energy brand solar-powered ... pump systems to farmers who chose us as their vendor on portals of agencies appointed by state governments (known as state nodal agencies or state implementing agencies (“SNAs/SIAs”)) wherein the orders are placed with us by SNAs/SIAs under the Government’s Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan scheme (“PM-KUSUM Scheme”) and similar state government schemes, and (ii) the EPC of GK Energy brand solar dual water pump systems (solar-powered pump systems that include water storage) to local government bodies. Sales to others comprise the EPC of solar-powered pump systems under orders placed by customers directly with the Company. The PM-KUSUM Scheme reflects the Central Government’s commitment to provide energy and water security to farmers through the installation of solar-powered water pump systems for irrigation as an alternative to diesel-powered or electric grid-connected pump systems (source: CRISIL Report). Each farmer chooses which vendor it wants as a supplier of the solar-powered pump system. Farmers choose a vendor based on, amongst other factors, the cost of the pump systems, support services provided by the vendors, the quality of components offered to farms, and brand recognition. For more details on the advantages and disadvantages of choosing us over our competitors from the perspective of a farmer, see “Our Business-Competition” on page 205. Each farmer for whom we provide a solarpowered pump system is a beneficiary, and each farmer pays their portion of the purchase price to an SNA/SIA. The SNAs/SIAs also collect funds from the Central Government and relevant state governments at the conclusion of a project and transfer the purchase price to us Read more

We primarily operate in the EPC of solar-powered agricultural water pump systems in India. India’s 118 million farmers are heavily dependent on groundwater extraction for irrigation. As of 2022, eight million out of approximately 30 million agriculture pumps in India were diesel based and ... 22 million pumps relied on grid electricity. Solar-powered pump systems present a transformative solution, offering an environmentally sustainable, cost-effective and reliable alternative to traditional irrigation methods. The PM-KUSUM Scheme, launched in 2019 with an outlay of ?344 billion, aims to install 1.4 million standalone solar-powered pump systems by March 31, 2026 to aid farmers and to reduce carbon dioxide emissions. The market size of the domestic solar-powered pump systems increased at a compound annual growth rate (“CAGR”) of 15% from ?19.3 billion in Fiscal 2019 to approximately ?39 billion in Fiscal 2024 and is forecast to reach ?300-320 billion by Fiscal 2029, witnessing a significant CAGR of 52% between Fiscals 2024 and 2029. Close to 84% of the additions are expected to be under the PM-KUSUM Scheme components B and C. Component B covers and provides for the installation of stand-alone solar-powered agriculture pump systems of capacity up to 7.5 HP for replacement of existing diesel agriculture pumps / irrigation systems in off-grid areas, where grid supply is not available. Component C covers and provides for the solarisation of existing grid connected agriculture pumps of capacity up to 7.5 HP. Read more