Powerica IPO opens today: price band, GMP slips, key dates and what investors should know

Power solutions provider, Powerica is launching its IPO worth Rs 1,100 crore today. The issue comprises issuance of fresh equity worth Rs 700 crore, while the promoter group will offload 1.01 crore shares to raise capital worth Rs 400 crore.

The price band for shares has been fixed at Rs 375 to Rs 395. In the unlisted markets, the company’s shares are trading at a premium; however, over the past few days, the GMP has seen significant declines.

Before you bid, here are five factors you should watch out for:

#1 Powerica IPO: Offer Size and BRLMs

The IPO is a book-built issue worth Rs 1,100 crore. Of the total float, Rs 700 crore is being raised via the issuance of 1.77 crore fresh equity shares, while the remaining Rs 400 crore will be raised via the offer for sale route, with promoter groups offloading 1.01 crore equity shares of Rs 5 each.

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

#2 Powerica IPO: Key Dates

The offer will open for bidding on Tuesday, March 24, and close on Friday, March 27. Indian stock markets will remain closed on Thursday, March 26, on the occasion of Shree Ram Navami; hence, investors won’t be able to bid on that day.

The share allotment is expected to be finalised by March 30, while the credit of shares to successful bidders is likely to be done by April 1. The refund process is also expected to be completed by the latter date.

Powerica IPO is expected to hit the bourses on April 2.

#3 Powerica IPO: GMP

As per market trackers, the shares of Powerica are trading in the unlisted markets at a premium of 0.76% or Rs 3 on the upper end of the price band. This indicates that shares may list at a price of Rs 398.

The price band for shares is fixed at Rs 375 to Rs 395. Over the past few sessions, the GMP has seen a decline; as on Wednesday, shares were trading at a premium of 3.29%, with the estimated listing price at Rs 408.

However, investors must note that GMP is an unofficial indicator of the listing price and fluctuates based on market mood and sentiment.

#4 Powerica IPO: Applicant Lot Size

Retail applicants may bid for a minimum of one lot comprising 37 shares, aggregating to Rs 14,615 (based on the upper price). Small NIIs may bid for a minimum of 14 lots aggregating to Rs 2,04,610, while big NIIs may bid for 69 lots amounting to Rs 10,08,435.

#5 Powerica IPO: Utilisation of Funds

The company intends to raise Rs 700 crore worth of fresh equity, of which Rs 525 crore will be deployed towards the repayment of its net borrowings. As per the company’s RHP, the remaining proceeds will be utilised for other general corporate purposes.