Powerica IPO Update: Bookings Lag at 3% on Day 3, Final Day Approaches

Powerica IPO Update

The final day of the bidding process for Powerica's initial public offering (IPO) has commenced on Friday, March 27. The offer, valued at ₹5,000 crore, has received a lukewarm response, with a subscription of only 3% by the end of the second day.

Key Details of the IPO

• ₹1,100 crore worth of shares are being offered, with a price band of ₹375–395 per share.
• The public issue consists of a fresh issue of ₹700 crore and an Offer for Sale (OFS) of ₹400 crore by promoters, as per the red herring prospectus (RHP).
• The OFS involves the sale of shares by the Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust.

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Proceeds Allocation

• ₹525 crore will be allocated to reduce debt, while the remaining funds will be used for general corporate needs.

Company Overview

Powerica operates as an integrated power solutions provider, specializing in diesel generator sets (DG sets), medium-speed large generators (MSLG), and related services. The company has also ventured into the wind power sector as an independent power producer and offers engineering, procurement, and construction (EPC) as well as operation and maintenance services.

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IPO Management

The public issue is being managed by ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management.

Grey Market Premium (GMP)

The current GMP for Powerica IPO shares is ₹1, indicating that shares are trading ₹1 above the issue price of ₹395 in the grey market. At the prevailing GMP, shares are expected to list at a 0.25% premium.