Rs 1,100 crore Powerica IPO – Day 1: Subscribed just 1%, Check GMP and Other Details
Powerica Limited's Rs 1,100 crore IPO opened on Tuesday, aiming to raise funds for debt repayment and corporate needs. The company, a key diesel generator set provider with strong OEM ties, offers shares at Rs 375-395. Despite a muted grey market ...
By Shivendra Kumar, ETMarkets.com | Updated:
ETMarkets.com
The initial public offering (IPO) of Powerica Limited, which opened today, saw a modest response, with overall subscription at just 1% on the first day against 2.05 crore shares on offer. Retail Individual Investors (RIIs) subscribed to only 2% of their allotted portion. The issue will remain open for three days and is scheduled to close on Friday, March 27.
In the grey market, the Powerica IPO is trading at a premium of around 1.27% (Rs 5 above the issue price of Rs 395), suggesting an estimated listing price of approximately Rs 400.
The company plans to raise Rs 1,100 crore through this issue, comprising a fresh issue of 1.77 crore shares worth Rs 700 crore and an offer for sale (OFS) of 1.01 crore shares valued at Rs 400 crore.
The company has set the price band at Rs 375–395 per share and retail investors can make applications for a minimum of 1 lot which comprises 37 equity shares amounting to Rs 14,615.
The IPO of fresh issue aggregates up to Rs 700 crores while the OFS aggregates up to Rs 400 crores. This including eligible employees reservation portion aggregating up to Rs 2 crores and anchor investor portion of 83,39,239 equity shares.
The company is offering a discount of Rs 37 per share to its employees. It has reserved 50% of the issue for qualified institutional buyers (QIBs), up to 35% for retail investors and 15% for non-institutional investors (NIIs).
The company raised Rs 329.39 crore on Monday through anchor investors.
Retail Individual Investors (RIIs) subscribed 2% of the 1.02 crore shares allotted to them. Non-Institutional Investors (NIIs) subscribed 1% of their 43.92 lakh shares quota, while Qualified Institutional Buyers (QIBs) did not place any bids on the 58.56 lakh shares reserved for them.
On Day 1, the Powerica IPO saw an overall subscription of just 1% against 2.05 crore shares on offer, according to BSE data.
Retail Individual Investors (RIIs) subscribed 2% of the 1.02 crore shares allotted to them. Non-Institutional Investors (NIIs) subscribed 1% of their 43.92 lakh shares quota, while Qualified Institutional Buyers (QIBs) did not place any bids on the 58.56 lakh shares reserved for them.
The company will utilize Rs 525 crore towards payment of its borrowings while Rs 175 crore for general corporate purposes. The OFS part will go to the selling shareholders.
Powerica is an integrated power solutions provider specialising in diesel generator sets (DG sets), for both primary and standby applications. As one of the Original Equipment Manufacturers (OEMs) for Cummins India Ltd, the company has maintained a strong relationship with them for over four decades.
Powerica manufactures DG sets along with auxiliary items, including acoustic enclosures, fuel and exhaust systems, and customized control panel systems. Building on the experience in the Generator Set Business, the company entered the wind power sector in 2008 as an Independent Power Producer (IPP). Subsequently, it developed capabilities as an Engineering, Procurement and Construction (EPC) contractor as well as an Operation and Maintenance (O&M) service provider for Balance of Plant (BoP). The company through its associate company Platino Automotive, is engaged in the Retrofit Emission Control Devices (RECDs) business, these RECD products provide comprehensive solutions for reducing emissions from existing DG sets.
The company's revenue from operations in H1FY26 stood at Rs 1,447 crore while its profit after tax (PAT) stood at Rs 129 crore. For FY25, revenue stood at Rs 2,653 versus Rs 2,210 crore in FY24 and Rs 2,378 in FY23. The PAT stood at Rs versus Rs 167 crore in FY25 and Rs 226 crore in FY24 and Rs 106 crore in FY23.
The Book Running Lead Managers (BRLMs) are ICICI Securities Ltd, IIFL Capital Services Ltd, Nuvama Wealth Management Ltd while the registrar to the issue is MUFG Intime India Pvt Ltd.
SBI Securities recommends investors to 'Subscribe' the issue for long term, valuing the company at 19.4X annualized FY26 earnings on post-issue capital at the upper band of the issue price.
"Although the revenue has grown only at a mid-single digit CAGR of 5.6% between FY23-FY25, growth has picked up during FY26. Demand for Diesel Generator sets remains strong led by data centers and backup power applications. The company has strong long term relationships with Cummins, Hyundai, Schneider Electric, GE Vernova and Vestas," the brokerage said.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
In the grey market, the Powerica IPO is trading at a premium of around 1.27% (Rs 5 above the issue price of Rs 395), suggesting an estimated listing price of approximately Rs 400.
The company plans to raise Rs 1,100 crore through this issue, comprising a fresh issue of 1.77 crore shares worth Rs 700 crore and an offer for sale (OFS) of 1.01 crore shares valued at Rs 400 crore.
Powerica IPO Price Band
The company has set the price band at Rs 375–395 per share and retail investors can make applications for a minimum of 1 lot which comprises 37 equity shares amounting to Rs 14,615.
The IPO of fresh issue aggregates up to Rs 700 crores while the OFS aggregates up to Rs 400 crores. This including eligible employees reservation portion aggregating up to Rs 2 crores and anchor investor portion of 83,39,239 equity shares.
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The company is offering a discount of Rs 37 per share to its employees. It has reserved 50% of the issue for qualified institutional buyers (QIBs), up to 35% for retail investors and 15% for non-institutional investors (NIIs).
The company raised Rs 329.39 crore on Monday through anchor investors.
Powerica IPO subscription status:
On Day 1, the Powerica IPO saw an overall subscription of just 1% against 2.05 crore shares on offer, according to BSE data.Retail Individual Investors (RIIs) subscribed 2% of the 1.02 crore shares allotted to them. Non-Institutional Investors (NIIs) subscribed 1% of their 43.92 lakh shares quota, while Qualified Institutional Buyers (QIBs) did not place any bids on the 58.56 lakh shares reserved for them.
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On Day 1, the Powerica IPO saw an overall subscription of just 1% against 2.05 crore shares on offer, according to BSE data.
Retail Individual Investors (RIIs) subscribed 2% of the 1.02 crore shares allotted to them. Non-Institutional Investors (NIIs) subscribed 1% of their 43.92 lakh shares quota, while Qualified Institutional Buyers (QIBs) did not place any bids on the 58.56 lakh shares reserved for them.
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Powerica IPO GMP
In the grey market, the Powerica IPO is trading at a premium of about 1.27%, or Rs 5 above the issue price of Rs 395, indicating an estimated listing price of around Rs 400. The grey market premium (GMP) is an unofficial indicator based on demand in unofficial markets and does not represent the actual listing price or guarantee any outcome.Powerica IPO net proceeds
The company will utilize Rs 525 crore towards payment of its borrowings while Rs 175 crore for general corporate purposes. The OFS part will go to the selling shareholders.
About Powerica
Powerica is an integrated power solutions provider specialising in diesel generator sets (DG sets), for both primary and standby applications. As one of the Original Equipment Manufacturers (OEMs) for Cummins India Ltd, the company has maintained a strong relationship with them for over four decades.
Powerica manufactures DG sets along with auxiliary items, including acoustic enclosures, fuel and exhaust systems, and customized control panel systems. Building on the experience in the Generator Set Business, the company entered the wind power sector in 2008 as an Independent Power Producer (IPP). Subsequently, it developed capabilities as an Engineering, Procurement and Construction (EPC) contractor as well as an Operation and Maintenance (O&M) service provider for Balance of Plant (BoP). The company through its associate company Platino Automotive, is engaged in the Retrofit Emission Control Devices (RECDs) business, these RECD products provide comprehensive solutions for reducing emissions from existing DG sets.
Powerica Financials
The company's revenue from operations in H1FY26 stood at Rs 1,447 crore while its profit after tax (PAT) stood at Rs 129 crore. For FY25, revenue stood at Rs 2,653 versus Rs 2,210 crore in FY24 and Rs 2,378 in FY23. The PAT stood at Rs versus Rs 167 crore in FY25 and Rs 226 crore in FY24 and Rs 106 crore in FY23.
Powerica IPO lead managers
The Book Running Lead Managers (BRLMs) are ICICI Securities Ltd, IIFL Capital Services Ltd, Nuvama Wealth Management Ltd while the registrar to the issue is MUFG Intime India Pvt Ltd.
Should you bid?
SBI Securities recommends investors to 'Subscribe' the issue for long term, valuing the company at 19.4X annualized FY26 earnings on post-issue capital at the upper band of the issue price.
"Although the revenue has grown only at a mid-single digit CAGR of 5.6% between FY23-FY25, growth has picked up during FY26. Demand for Diesel Generator sets remains strong led by data centers and backup power applications. The company has strong long term relationships with Cummins, Hyundai, Schneider Electric, GE Vernova and Vestas," the brokerage said.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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