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GK Energy shares entered the secondary market on Dalal Street on Friday, September 26, after the IPO of the EPC provider of solar-powered agricultural water pump systems concluded this week with a phenomenal response from investors. The GK Energy stock began trading on BSE at Rs 165.2 apiece, a premium of Rs 12.2 or 8.0 per cent over its issue price. On NSE, GK Energy shares -- traded with the symbol GKENERGY on bourses -- debuted at Rs 171 apiece, marking a premium of Rs 18 or 11.8 per cent. 

GK Energy's IPO -- a mix of fresh issuance and offer for sale (OFS) -- worth Rs 464 crore saw an overall subscription of 89.6 times, according to provisional exchange data. 

All kinds of investors participated strongly in the public offer, with the qualified institutional buyer (QIB) portion booked 186.3 times and the non-institutional investor (NII) quota subscribed 122.7 times the equity on offer. 

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The portion of the IPO set aside for retail individual investors (RIIs) was booked 20.8 times. 

Here are answers to some of the commonly asked questions about IPOs and listings: 

What is an IPO?

An IPO is a market instrument that enables companies to offer their shares to the public for the first time to raise capital.Why do companies launch IPOs?IPOs enable companies to raise funds for reasons like expansion plans, debt repayment or market visibility.

What does a listing mean?

Listing refers to the entry of newly-launched shares in the secondary market for market participants to trade.

How is an IPO priced?

An IPO can be priced through a fixed price method or a book-building process.

In the book-building process, the price is discovered on the basis of demand.

Who can apply for an IPO?

Retail investors, non-institutional investors and qualified institutional buyers can bid for shares in IPOs.

What is the difference between allotment and listing?

While allotment is the distribution of shares to investors, listing is when those shares start trading on exchanges.

Can shares won in IPOs be sold immediately after listing?

Yes.

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