Powerica IPO sees muted response; GMP slips, subscription remains weak

As of 11:55 am on March 25, the issue was subscribed 2%, according to NSE data. The retail individual investors (RIIs) portion saw 3% subscription, while the non-institutional investors (NIIs) segment was subscribed 1%. The qualified institutional buyers (QIBs) portion is yet to see meaningful bids.

By Meghna Sen

Shares of Powerica Ltd are indicating a muted listing sentiment, with the grey market premium (GMP) slipping to ₹2 from ₹4 on the day the issue opened for subscription.

However, grey market premiums are only an informal indicator of demand in the unlisted market and tend to be highly volatile.

The ₹1,100 crore initial public offering (IPO) of the Mumbai-based power solutions provider opened for subscription on March 24 and will close on March 27.

As of 11:55 am on March 25, the issue was subscribed 2%, according to NSE data.

The retail individual investors (RIIs) portion saw 3% subscription, while the non-institutional investors (NIIs) segment was subscribed 1%. The qualified institutional buyers (QIBs) portion is yet to see meaningful bids.

The company has fixed a price band of ₹375 to ₹395 per share. Retail investors can bid for a minimum lot size of 37 shares, translating into an investment of ₹14,615 at the upper end of the band, with bids allowed in multiples thereafter. Eligible employees are being offered a discount of ₹37 per share.

At the upper end of the price band, the company is expected to command a post-issue market capitalisation of ₹4,998.6 crore.

The IPO comprises a fresh issue of ₹700 crore and an offer for sale (OFS) of ₹400 crore. Notably, the OFS size has been reduced from ₹700 crore earlier, while the overall issue size was ₹1,400 crore in the draft red herring prospectus filed in August last year and later approved by Securities and Exchange Board of India in December 2025.

Of the total issue, 50% is reserved for QIBs, 15% for NIIs, and 35% for retail investors.

The company plans to utilise ₹525 crore from the fresh issue towards debt repayment, with the remaining proceeds earmarked for general corporate purposes. As of February 2026, its total outstanding borrowings stood at ₹1,214.25 crore.

Powerica began its diesel generator sets business in 1984 and expanded into medium-speed large generators (MSLG) in 1996. It currently offers generator sets ranging from 7.5 kVA to 10,000 kVA.

Its portfolio includes diesel generator sets powered by Cummins engines, MSLG offerings in collaboration with Hyundai, and allied services.

The generator set division contributes over 80.5% of revenue, with the balance coming from the wind power segment. The company reported a profit of ₹129 crore for the six months ended September 2025 on revenue of ₹1,447.44 crore.

For FY25, profit declined 26.3% to ₹166.8 crore from ₹226.3 crore in the previous year, largely due to a fall in other income to ₹57.7 crore from ₹146.8 crore. Revenue, however, rose 20% to ₹2,653.3 crore from ₹2,210 crore.

ICICI Securities Ltd, IIFL Capital Services Ltd and Nuvama Wealth Management Ltd are the book-running lead managers to the issue, while MUFG Intime India Pvt Ltd is the registrar.

The allotment is expected on March 30, with the stock likely to list on April 2.