The public offering for power solutions provider Powerica Ltd had received a 3% subscription on the second day of the share sale on Wednesday, March 25. The price range for the Powerica IPO has been set between ₹375 and ₹395, resulting in a company valuation of around ₹5,000 crore.
Prior to the IPO beginning on Monday, Powerica raised ₹329.40 crore from anchor investors. Shares were allocated to various institutional investors, including SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Quant Mutual Fund, Bandhan Mutual Fund, along with insurance firms such as Kotak Life, Edelweiss Life, and Reliance Nippon Life, as stated in a circular published on the BSE’s website.
Powerica IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee portion has been reserved shares up to ₹2 crore.
Tentatively, Powerica IPO basis of allotment of shares will be finalised on Monday, March 30 and the company will initiate refunds on Wednesday, April 1, while the shares will be credited to the demat account of allottees on the same day following refund. Powerica share price is likely to be listed on BSE and NSE on Thursday, April 2.
Powerica IPO GMP today
Powerica IPO GMP is Re 1. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Powerica shares is indicated as ₹396 apiece, which is 0.25% higher than the IPO price of ₹395.
Based on the activities observed in the grey market over the past 11 sessions, the current GMP (Re 1) is indicating potential declines. The minimum GMP recorded is ₹0.00, while the maximum GMP reached is ₹13, as per expert analysis.
‘Grey market premium‘ indicates investors’ readiness to pay more than the issue price.
Powerica IPO subscription status
Powerica IPO subscription status was 3% on day 2. The retail portion is subscribed 4%, and NII portion has been booked 1%, QIBs portion is yet to receive bids. The employee portion has been subscribed 81%.
The company has received bids for 5,22,995 shares against 2,05,55,171 shares on offer, at 17:00 IST, according to data on BSE.
Powerica IPO review
Canara Bank Securities pointed out that the company provides a comprehensive platform for power solutions that integrates diesel generator sets (DG sets), multi-source logistics generation (MSLG), and renewable energy, bolstered by its partnership with Cummins and robust manufacturing capabilities. The renewable energy segment offers consistent cash flow, while MSLG and engineering, procurement, and construction (EPC) projects enhance growth opportunities. Main risks include reliance on Cummins, extended development timelines for MSLG, regulatory hurdles in the renewable energy sector, and the potential long-term impacts on DG sets.
At the upper price limit, the valuation seems appealing when compared to rivals, and taking into account its strong market presence and growth prospects, a recommendation of “SUBSCRIBE for Long-Term Investment” is proposed.
Swastika Investmart suggests that applications should be completed with caution, especially by individuals who can manage risk and have an interest in long-term investments. It is unsuitable for those seeking quick profits from listings, given the ongoing decline in earnings and continuous legal issues. It may be wise to think about applying for a limited amount only.
According to Equivision, it is recommended to steer clear of this issue. The brokerage points out that the company has a high concentration within its segments, with 85.00% of projected FY25 revenue coming from the Generator Set Business. Furthermore, the fixed-tariff wind PPAs limit the ability to transfer costs, which may impact margins over time. The business heavily depends on essential OEM partnerships, as 70.39% of FY25 revenue relies on Cummins-powered DG sets; any disruptions or negative changes in this long-standing relationship could profoundly affect operations and profitability.
Powerica IPO details
The company’s public offering consists of a new share issuance valued at ₹700 crore, along with a ₹300 crore share sale by the promoters, as detailed in the red herring prospectus (RHP).
The size of the Offer For Sale (OFS) has been reduced from the initially announced ₹700 crore, leading to a total IPO value of ₹1,000 crore instead of the originally proposed ₹1,400 crore in the draft documents submitted in August 2025. The Naresh Oberoi Family Trust and the Kabir and Kimaya Family Private Trust plan to sell shares via the OFS.
Of the funds generated from the new share issue, ₹525 crore is designated to reduce the company’s debt, with extra capital allocated for general corporate activities. Powerica has selected ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management to oversee its first public offering, while MUFG Intime India Pvt. Ltd. will serve as the offering’s registrar.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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