Powerica IPO Day 1 Review

Overview

Powerica, a comprehensive power solutions provider, has commenced its initial public offering (IPO) with a valuation of ₹1,100 crore. The IPO price band has been set between ₹375 and ₹395, placing the company's valuation at nearly ₹5,000 crore.

Financial Performance

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Powerica has reported a 20% growth in revenue from operations, reaching ₹2,653 crore in fiscal 2025, up from ₹2,210 crore in the previous fiscal year. However, the profit after tax fell to ₹175.83 crore for fiscal 2025 compared to ₹226.11 crore for fiscal 2024.

IPO Details

The Powerica IPO consists of a new share issue valued at ₹700 crore, along with a share sale worth ₹300 crore by promoters. The size of the Offer For Sale (OFS) has been reduced from ₹700 crore, bringing the total IPO amount down to ₹1,000 crore from the ₹1,400 crore initially proposed.

Subscription Status

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Subscription for the public issue will open at 10:00 IST during Tuesday's deals. The allotment of shares is expected to be finalized on Monday, March 30, with refunds initiated on Wednesday, April 1. The shares will be credited to the demat account of allottees on the same day following refund.

Listing Date

Powerica shares are expected to be listed on BSE and NSE on Thursday, April 2.

Grey Market Premium

The current grey market premium for Powerica shares is ₹5, indicating a trend leaning towards the downside. The estimated listing price of Powerica shares is ₹400 apiece, which is 2.83% higher than the IPO price of ₹395.

Recommendations

Canara Bank Securities has recommended a "SUBSCRIBE for Long-Term Investment" due to the company's strong market position and growth prospects. However, Swastika Investmart has advised caution, specifically targeting those who can tolerate risk and are looking at long-term investments.