Powerica IPO Day 1: Issue opens today. GMP, key dates, review. Should you but or not?

Powerica IPO Day 1: Powerica's initial public offering, valued at ₹1,100 crore, is set to open for subscriptions from March 24 to March 27. Powerica IPO price band has been established between ₹375 and ₹395, placing the company's valuation at nearly ₹5,000 crore.

The power solutions provider raised ₹329.40 crore from anchor investors on Monday, prior to the opening of its IPO.

Allocations of shares were made to various institutional investors, including SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Quant Mutual Fund, Bandhan Mutual Fund, and insurance firms like Kotak Life, Edelweiss Life, and Reliance Nippon Life, as detailed in a circular posted on the BSE's website.

Powerica is a comprehensive power solutions provider that focuses on diesel generator sets (DG sets), medium speed large generators (MSLG), and associated services.

In terms of finances, Powerica experienced a 20% growth in revenue from operations, reaching ₹2,653 crore in fiscal 2025, up from ₹2,210 crore in the previous fiscal year; however, the profit after tax fell to ₹175.83 crore for fiscal 2025 compared to ₹226.11 crore for fiscal 2024.

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 ₹5. 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 ₹400 apiece, which is 2.83% higher than the IPO price of ₹395.

Considering the grey market activities over the past eight sessions, the present GMP of ₹5 indicates a trend leaning towards the downside. The minimum GMP recorded is ₹0.00, whereas the maximum is ₹13, as stated by analysts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Powerica IPO review

Canara Bank Securities stated that the company provides a comprehensive power solutions platform that integrates DG sets, MSLG, and renewable energy, bolstered by its partnership with Cummins and its robust manufacturing capabilities. The renewable energy segment contributes to consistent cash flows, while MSLG and EPC projects enhance growth visibility. Major risks include reliance on Cummins, lengthy development phases for MSLG, regulatory hurdles in the renewable energy sector, and the potential long-term impact on DG sets.

At the upper price range, the valuation seems compelling compared to competitors, and given its strong market position and growth prospects, a “SUBSCRIBE for Long-Term Investment” recommendation is advised.

Swastika Investmart advised that applications should be made with caution, specifically targeting those who can tolerate risk and are looking at long-term investments. It is not suitable for individuals seeking immediate listing gains due to decreasing profits and ongoing legal issues. It may be wise to consider applying with a limited allocation only.

Powerica IPO details

The company's initial public offering consists of a new share issue valued at ₹700 crore, along with a share sale worth ₹300 crore by promoters, as detailed in the red herring prospectus (RHP).

The size of the Offer For Sale (OFS) has been reduced from the previously stated ₹700 crore, bringing the total IPO amount down to ₹1,000 crore from the ₹1,400 crore initially proposed in the draft documents submitted in August 2025.

Through the OFS, the Naresh Oberoi Family Trust and the Kabir and Kimaya Family Private Trust plan to sell shares.

From the fresh share issuance, ₹525 crore will be directed toward reducing the company's debt, with some funds also allocated for general corporate needs.

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 registrar for the issue.

Powerica IPO subscription status

Subscription for the public issue will open at 10:00 IST during Tuesday's deals.

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.