Powerica share price makes weak stock market debut, lists at 7% discount to IPO price

Powerica share price made a lacklustre debut in the Indian stock market on Thursday, April 2. The stock listed a 7% discount to the IPO price of ₹395.

Powerica share price opened at ₹365 apiece on NSE and 5% down to ₹375 on BSE on Thursday. This means that the IPO allottees made a loss of 7% over the Powerica IPO listing.

Powerica IPO details

Powerica IPO, worth ₹1,100 crore, has a price band of ₹375–395 per share, valuing the company at around ₹5,000 crore.

The public issue comprises a fresh issue of shares worth ₹700 crore and an Offer for Sale (OFS) of ₹400 crore by promoters, as per the red herring prospectus (RHP). Under the OFS, shares will be sold by the Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust.

Proceeds from the fresh issue will primarily be used to reduce debt, with ₹525 crore allocated for this purpose, while the remaining funds will be used for general corporate needs.

Powerica operates as an integrated power solutions provider, specialising in diesel generator sets (DG sets), medium-speed large generators (MSLG), and related services. It also ventured into the wind power sector in 2008 as an independent power producer and has since expanded its capabilities to include engineering, procurement, and construction (EPC), as well as operation and maintenance services.

ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management are managing the public issue.

More to come…

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.