The initial public offering (IPO) of Powerica Limited, an integrated power solutions provider specialising in diesel generator sets (DG sets), which opened for subscription today, March 23, received a muted response from investors.

By the end of the day, the issue was subscribed just 0.01 times, with 2.14 lakh shares bid for against 1.95 crore shares on offer, according to exchange data.

The retail portion was subscribed 0.02 times, while the non-institutional investor (NII) portion was subscribed 0.01 times. The qualified institutional buyer (QIB) portion has not yet opened for bidding. The employee quota saw some response, as the segment was subscribed 0.32 times. Ahead of the issue opening, the company ₹329.40 crore from anchor investors”>raised ₹329.40 crore from anchor investors.

Powerica IPO details

The IPO comprises a fresh issue of 1.77 crore shares and an offer for sale (OFS) of 1.01 crore shares. From the fresh issue, the company intends to raise up to ₹700 crore, while the OFS portion is expected to generate up to ₹400 crore. The issue’s price band has been set at ₹375 to ₹395 per share.

As much as 50% of the net issue is reserved for qualified institutional buyers (QIBs), while 15% is reserved for non-institutional investors (NIIs). The remaining 35% is reserved for retail investors.

The IPO lot size is 37 shares, with the minimum application being one lot. At the upper price band of ₹395, the minimum investment required for retail investors is ₹14,615. The maximum lot size for retail investors is 13 lots, amounting to ₹1,89,995.

ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management are the book-running lead managers of the issue, while MUFG Intime India Private Limited is the registrar to the issue.

The company intends to utilise the net proceeds from the fresh issue of shares for the repayment of certain borrowings and for general corporate purposes.

Meanwhile, the grey market premium (GMP) of Powerica as of today was ₹5, which indicates the stock might list slightly above its issue price.

About Powerica

The company is an integrated power solutions provider specialising in diesel generator sets for both primary and standby applications. It is an original equipment manufacturer for Cummins India Limited and has maintained a relationship with the company for over four decades.

It started its DG sets business in 1984 and subsequently expanded its generator set portfolio to include medium-speed large generators while continuing to develop this segment through a non-exclusive collaboration with HD Hyundai Heavy Industries Co., Limited, according to the company’s DRHP.

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