Powerica Limited IPO Receives Muted Response from Investors

Key Figures:

• ₹700 crore: Amount to be raised from the fresh issue of shares
• ₹400 crore: Expected amount to be raised from the offer for sale (OFS) portion
• ₹375 - ₹395: Price band set for the IPO
• 37 shares: IPO lot size
• ₹14,615: Minimum investment required for retail investors at the upper price band
• ₹1,89,995: Maximum investment allowed for retail investors

IPO Details

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The initial public offering (IPO) of Powerica Limited, an integrated power solutions provider, opened for subscription on March 23. The issue received a muted response from investors, with the issue being subscribed just 0.01 times by the end of the day. The retail portion was subscribed 0.02 times, while the non-institutional investor (NII) portion was subscribed 0.01 times. The qualified institutional buyer (QIB) portion has not yet opened for bidding.

The IPO comprises a fresh issue of 1.77 crore shares and an offer for sale (OFS) of 1.01 crore shares. 50% of the net issue is reserved for qualified institutional buyers (QIBs), while 15% is reserved for non-institutional investors (NIIs). The remaining 35% is reserved for retail investors.

IPO Process

The issue's price band has been set at ₹375 to ₹395 per share. The IPO lot size is 37 shares, with the minimum application being one lot. At the upper price band of ₹395, the minimum investment required for retail investors is ₹14,615. The maximum lot size for retail investors is 13 lots, amounting to ₹1,89,995.

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Company Utilization of Proceeds

The company intends to utilise the net proceeds from the fresh issue of shares for the repayment of certain borrowings and for general corporate purposes.

Company Overview

Powerica Limited is an integrated power solutions provider specialising in diesel generator sets for both primary and standby applications. It is an original equipment manufacturer for Cummins India Limited and has maintained a relationship with the company for over four decades. The company started its DG sets business in 1984 and subsequently expanded its generator set portfolio to include medium-speed large generators while continuing to develop this segment through a non-exclusive collaboration with HD Hyundai Heavy Industries Co., Limited.