Powerica Aims for Debt-Free Status Following IPO, Seeks Expansion in Data Centre and Renewable Energy Sectors

Powerica IPO Aims to Strengthen Balance Sheet

Powerica, a Mumbai-based company, is seeking to raise Rs 700 crore through its initial public offering (IPO) to become debt-free. The company's chairman and managing director, Bharat Oberoi, stated that this move will strengthen its balance sheet as it scales its two core businesses: diesel generator (DG) sets and wind power. The company aims to use around Rs 525 crore to clear debt.

Key IPO Details

• Rs 700 crore to be raised through new shares
• Rs 400 crore to be sold by promoters via offer-for-sale
• Rs 375 to Rs 395 per share price band fixed
• Issue opens for subscription on March 24 and closes on March 27

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Business Growth Opportunities

Powerica's management believes that growth opportunities will be led by the DG set business, driven by demand from data centres and broader economic growth and infrastructure expansion. The company's data centre order book is growing sharply, and the segment is expected to contribute around 15% of revenues.

Wind Power Strategy

Powerica's wind power business is central to its long-term growth plans. The company owns and operates 12 wind power projects in Gujarat, with a total installed capacity of 330.85 MW, and is constructing a wind power project of 52.70 MW in Gujarat. The company is aligned with India's renewable energy push, which aims to reach 500 gigawatts of clean energy.

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Post-IPO Strategy

With a debt-free balance sheet, Powerica plans to fund future expansion largely through structured debt rather than equity dilution. This strategy will enable the company to maintain its financial stability and continue to grow its businesses.