Powerica IPO to open next week: Here are 10 key things from the RHP that investors must know

Powerica IPO: The ₹1,100-crore initial public offering (IPO) of Powerica, a power solutions company, will hit the Indian primary market next week on March 24. The offer will close for bidding on Friday, March 27.

Powerica IPO is priced at ₹375 to ₹395 per share, valuing the company at nearly ₹5,000 crore. The company has cut its IPO size from the ₹1,400 crore proposed in the draft papers filed in August 2025.

Investors can apply for the offer in lots of 37 shares and multiples thereof, resulting in a minimum payout of ₹14,615.

Powerica IPO GMP

Ahead of the offer launch, Powerica IPO shares are witnessing a tepid grey market premium (GMP). According to the websites tracking the unofficial market, Powerica IPO GMP stood at ₹8. This means that shares of Powerica are trading at ₹403, a premium of around 2%.

However, investors must note that GMP is subject to swift changes and should not be the sole deciding factor for investors before applying for the IPO.

Shares of Powerica will list on BSE and NSE.

Powerica IPO RHP: 10 key details

Here are the key things that investors must know from the red herring prospectus about Powerica IPO for making a more informed decision:

1. Powerica IPO structure

Powerica IPO is a mix of fresh issue of ₹700 crore and an offer for sale of ₹400 crore by the existing shareholders.

2. Powerica IPO objective

The company plans to use the major chunk of fresh proceeds to the tune of ₹525 crore for repayment of debt, while the remaining funds will be used for general corporate purposes.

3. Selling shareholders in Powerica IPO

Naresh Oberoi Family Trust and Kabir and Kamya Family Private Trust are the promoter selling shareholders in the IPO.

4. About the company

Established in 1984, Powerica is an integrated power solutions provider specializing in diesel generator sets (DG sets), for both primary and standby applications. It provides a comprehensive range of generator sets with capacities ranging from 7.5 kVA to 10,000 kVA, designed to meet the distinctive requirements of diverse industries and applications.

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

5. Collaborations with established players

The company is one of the original equipment manufacturers for Cummins India. Additionally, it has been in a collaboration with Hyundai since 2014. GE Vernova and Schneider Electric have been clients of the company for a few years now.

6. Who are the listed peers of the company?

According to the company's RHP, Cummins India, Kirloskar Oil Engines, NTPC Green Energy, Acme Solar Holdings, and Adani Green Energy are the listed peers of the company.

7. Key risks

The company said it is highly dependent on its generator business, which contributed 80.50%, 85.00%, 86.30%, and 82.79% of our revenue from operations for the six-month period ended September 30, 2025, and Fiscals 2025, 2024 and 2023, respectively. Thus, any impact on the same can materially affect the company.

Additionally, the company has historically relied, and may continue to rely, on Cummins India and the top five suppliers for a significant portion of our materials and components, putting it in a vulnerable spot amid delays in supplied quantity or any issue with quality.

8. Industry overview

According to the F&S Report, standby power remains a vital part of India’s energy infrastructure, helping ensure operational continuity during power outages or voltage fluctuations. Ongoing urbanisation, population growth, and expansion of residential, commercial, industrial, and infrastructure projects have intensified the need for reliable backup power across the country.

According to the CRISIL Report, India is rapidly emerging as a global leader in the renewable energy sector, with wind power playing a pivotal role in this transformation. According to the CRISIL Report, as of September 2025, the country has already installed ~53 GW of wind energy capacity.

9. Financials

Powerica's revenue from operations increased 20% o ₹2,653 crore in FY25 from ₹2,210 crore in the preceding fiscal year. However, profit after tax declined to ₹175.83 crore for FY25 as compared to ₹226.11 crore for FY24.

10. BRLMs

ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management have been appointed by Powerica to manage its maiden public issue. Meanwhile, MUFG Intime India is the registrar to the IPO.