Powerica IPO Sees Modest Demand on Third Day, Raises Questions on Group Buying and Investment Strategy

Powerica Ltd IPO Update

Overview

Powerica Ltd, a power solutions provider, has received a 3% subscription on the second day of its share sale on March 25. The company has set a price range of ₹375 to ₹395, resulting in a valuation of around ₹5,000 crore.

IPO Details

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• ₹1,000 crore total IPO value
• ₹700 crore new share issuance
• ₹300 crore share sale by promoters
• ₹525 crore allocated to reduce debt
• ₹175 crore for general corporate activities

Subscription Status

• 3% overall subscription on day 2
• 4% retail portion subscribed
• 1% NII portion subscribed
• 81% employee portion subscribed
• QIBs portion yet to receive bids

Grey Market Premium

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• ₹1 current GMP
• Estimated listing price of ₹396 per share

Valuation and Recommendation

• Valuation of around ₹5,000 crore
• Canara Bank Securities recommends "SUBSCRIBE for Long-Term Investment"
• Swastika Investmart suggests caution and recommends applying for a limited amount only
• Equivision recommends steering clear of this issue due to high concentration within segments and dependence on Cummins partnerships

Listing and Refunds

• Tentative basis of allotment of shares to be finalized on March 30
• Refunds to be initiated on April 1
• Shares to be credited to demat accounts on April 1
• Listing on BSE and NSE on April 2