Powerica to Launch Rs 1,100 Crore IPO on March 24, Reduces Offer Size

Powerica IPO: Mumbai-Based Generator Sets Manufacturer Files Red Herring Prospectus

Key Highlights:

• Powerica, a Mumbai-based diesel and gas generator sets manufacturing company, has filed a Red Herring Prospectus with the Registrar of Companies on March 17.
• The company plans to raise Rs 1,100 crore through its initial public offering (IPO), which is scheduled to hit the capital markets on March 24.
• Powerica aims to raise Rs 700 crore by issuing new shares, while promoters will sell shares worth Rs 400 crore via an offer-for-sale.

IPO Details:

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• The IPO size has been reduced from Rs 1,400 crore as per the Draft Red Herring Prospectus filed in August 2025.
• The offer-for-sale size has been reduced from Rs 700 crore earlier.
• The company has reserved Rs 2 crore worth shares of the IPO for its employees.
• The IPO anchor book will be opened for a day on March 23, and the offer will close for public subscription on March 27.

IPO Allocation:

• Half of the net offer size has been reserved for qualified institutional buyers, 15 percent for non-institutional investors, and 35 percent for retail investors.

Proceeds Utilization:

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• Powerica intends to spend Rs 525 crore of proceeds from the fresh issue for repayment of certain debt, and the remainder funds for general corporate purposes.

Financial Performance:

• As of February 2026, the company has total outstanding borrowings from banks of Rs 1,214.25 crore.
• Powerica earned Rs 129 crore in profit in the six months period ended September 2025 on revenue of Rs 1,447.44 crore.
• The company posted a profit of Rs 166.8 crore in fiscal 2025, falling 26.3 percent from Rs 226.3 crore in the previous year.

Merchant Bankers:

• ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management are acting as the merchant bankers for the Powerica IPO.