Ahead Of IPO, Powerica Mobilises Rs 329 Crore From Anchor Investors

Power solutions provider Powerica Ltd. garnered Rs 329.40 crore from anchor investors on Monday, a day before its initial public offering (IPO) opens for subscription.

Shares allocations were made to several institutional investors, including SBI Mutual Fund (MF), HDFC MF, ICICI Prudential MF, Quant MF, Bandhan MF, insurance companies such as Kotak Life, Edelweiss Life, and Reliance Nippon Life, according to a circular uploaded on BSE's website.

According to the circular, the company finalised the allocation of 83,39,239 equity shares to anchor investors at Rs 395 per share. The total allocation amounts to approximately Rs 329.40 crore.

Powerica's Rs 1,100-crore maiden public offering will open for subscription on March 24 and conclude on March 27. The price band has been fixed at Rs 375 to Rs 395 apiece, valuing the company at nearly Rs 5,000 crore.

The company's IPO is a combination of a fresh issue of shares worth Rs 700 crore, along with an Offer For Sale (OFS) of shares valued at Rs 300 crore by promoters, according to the red herring prospectus (RHP).

The OFS size has been cut from Rs 700 crore earlier, reducing the total IPO size to Rs 1,000 crore from Rs 1,400 crore proposed in the draft papers filed in August 2025.

Under the OFS, Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust would offload shares.

Of the fresh issuance, funds worth Rs 525 crore will be utilised to pare the company's debt, and a portion will be used for general corporate purposes.

The company's total borrowings stood at Rs 571.95 crore as of September 30, 2025, as per the red herring prospectus.

This is the company's second attempt to go public. Back in 2019, Powerica had filed draft papers with the Securities and Exchange Board of India (Sebi) to float an IPO. However, the plan was shelved.

Powerica will make its stock market debut on April 2.

Powerica is an integrated power solutions provider specialising in diesel generator sets (DG sets), medium speed large generators (MSLG), and related services.

Further, the company expanded into the wind power sector in 2008 as an independent power producer and has since developed capabilities as an engineering, procurement, and construction contractor, as well as an operation and maintenance service provider for balance of plant.

The company operates three manufacturing facilities located in Bengaluru, Karnataka; Silvassa, Dadra and Nagar Haveli; and Khopoli, Maharashtra.

On the financial front, Powerica's revenue from operations increased by 20 per cent to Rs 2,653 crore in fiscal 2025 from Rs 2,210 crore in the preceding fiscal; however, profit after tax declined to Rs 175.83 crore for fiscal 2025 as compared to Rs 226.11 crore for fiscal 2024.

ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management have been appointed by Powerica to manage its maiden public issue.

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