Powerica Secures Rs 329 Crore from Anchor Investors Ahead of Rs 1,100-Crore IPO Launch on March 24

Powerica Raises Rs 329.4 Crore from Anchor Investors Ahead of IPO

On March 23, Mumbai-based power solutions provider Powerica concluded an anchor investor allocation of Rs 329.4 crore from 17 investors, a day ahead of the Rs 1,100-crore Initial Public Offering (IPO) opening on March 24.

The public issue, consisting of a fresh issuance of Rs 700 crore worth of shares and an offer-for-sale of Rs 400 crore worth of shares, will close on March 27. The price band for the offer has been fixed at Rs 375-395 per share, with 83.39 lakh shares allocated to anchor investors at the upper price band.

Domestic Mutual Funds dominated the allocation, with SBI Funds Management emerging as the largest buyer, acquiring 25.56 lakh shares worth Rs 101 crore through four of its schemes. Other notable buyers include HDFC AMC, ICICI Prudential MF, and Kotak Mahindra AMC, each acquiring 10.12 lakh shares worth nearly Rs 40 crore.

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Insurance Companies Kotak Mahindra Life Insurance, Edelweiss Life Insurance, and Reliance Nippon Life Insurance also participated in the anchor book, purchasing 5.56 lakh shares worth Rs 22 crore.

Custody Bank of Japan and Ashoka WhiteOak were among the other anchor investors, buying shares worth Rs 10.4 crore and Rs 21 crore, respectively.

Powerica, which manufactures diesel generator sets for Cummins India and medium speed large generators for Hyundai, plans to utilize Rs 525 crore of the fresh issue proceeds for repayment of certain borrowings and the remainder for general corporate purposes. The company operates through three manufacturing facilities in Bengaluru, Silvassa (Dadra and Nagar Haveli), and Khopoli (Maharashtra).

The book running lead managers for the Powerica IPO are ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management.

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