Powerica mobilises over Rs 329 crore from 17 anchor investors, Rs 1,100-crore IPO to open on March 24

Mumbai-based power solutions provider Powerica has raised Rs 329.4 crore from 17 anchor investors on March 23, a day before the Rs 1,100-crore IPO opening.

The public issue, which is a combination of fresh issuance of shares worth Rs 700 crore and an offer-for-sale of Rs 400 crore worth shares, will open on March 24 and close on March 27. The price band for the offer has been fixed at Rs 375-395 per share.

The company has finalised allocation of 83.39 lakh shares to anchor investors at the upper price band. "Out of the total allocation, 69.87 lakh shares were allocated to eight domestic mutual funds including SBI Mutual Fund, HDFC AMC, ICICI Prudential Mutual Fund, Quant MF, and Bandhan Mutual Fund, which have applied through their 11 schemes," Powerica said.

SBI Funds Management was the largest buyer in the anchor book of Powerica, picking up 25.56 lakh shares worth Rs 101 crore through their four schemes, while HDFC AMC, ICICI Prudential MF, and Kotak Mahindra AMC each acquired 10.12 lakh shares worth nearly Rs 40 crore.

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Further, three insurance companies - Kotak Mahindra Life Insurance, Edelweiss Life Insurance, and Reliance Nippon Life Insurance - bought 5.56 lakh shares worth Rs 22 crore.

Custody Bank of Japan, and Ashoka WhiteOak were other investors in the anchor book, buying shares worth Rs 10.4 crore, and Rs 21 crore, respectively.

Powerica that manufactures diesel generator sets for Cummins India, and medium speed large generators for Hyundai will utilise Rs 525 crore of fresh issue proceeds for repayment of certain borrowings, and the remainder funds for general corporate purposes.

The company operates business through three manufacturing facilities in Bengaluru, Silvassa (Dadra and Nagar Haveli), and Khopoli (Maharashtra).