Powerica eyes zero-debt post IPO, bets on data centre-driven growth and wind power demand

The goal for Mumbai-based Powerica's IPO is to be debt-free, a move the company says will strengthen its balance sheet as it scales its two core businesses—diesel generator (DG) sets and wind power. “Post this, we will be a zero-debt company,” chairman and managing director Bharat Oberoi said on the sidelines of the IPO launch.

Powerica aims to raise Rs 700 crore by issuing new shares, while promoters will be selling shares worth Rs 400 crore via offer-for-sale. The offer-for-sale size has been reduced from Rs 700 crore earlier and the total IPO size was Rs 1,400 crore. They aim to use around Rs 525 crore to clear debt. The company has fixed the price band of its IPO between Rs 375 to Rs 395 per share. The issue will open for subscription on March 24, and close on March 27.

Data centres drive DG set demand

The management believes that growth opportunities will be led by the DG set business, with opportunities coming from data centres, which require uninterrupted power supply. Oberoi said demand in this segment has surged sharply. “Our data center order book is really going off through the roof and is very substantial,” he said. The company has not shared specific details on order book.

Data centres currently contribute about 12–13 percent of revenues and are expected to grow further. “Data center is on a boom…this will move up to about 15 per cent,” Oberoi said.

Beyond data centres, the DG set business continues to benefit from broader economic growth and infrastructure expansion. The management described DG sets as “insurance for power,” adding that rising industrial activity and urbanisation are driving demand for backup power solutions across sectors.

“All manufacturing is doing well, but data centers are clearly the fastest-growing segment right now,” he said, noting that the company services over 55,000 customers and is upgrading its CRM systems with AI to improve execution and response times.

Wind power anchors long-term strategy

While DG sets provide steady cash flows, wind energy is central to their long-term growth plans. Currently, it owns and operates 12 wind power projects in Gujarat, with a total installed capacity of 330.85 MW, and in addition to that, it is constructing a wind power project of 52.70 MW in Gujarat.

Whole-Time Director Pradeep Gupta said the opportunity is aligned with India’s renewable energy push. “Wind will grow from about 54 gigawatts today to nearly 110 gigawatts,” he said, as part of the country’s 500-gigawatt clean energy target. “We have already secured more capacity, and the rest will be completed over the next two years,” he said.

With the balance sheet set to turn debt-free, the company plans to fund future expansion largely through structured debt rather than equity dilution.

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