Rs 1,100 crore Powerica IPO issue opens today - Check price band, GMP and to subscribe or not

The initial public offer (IPO) of Powerica Limited will open for bidding on Tuesday and will close on Friday March 27. The company plans to raise Rs 1,100 crore through the issue which is a combination of an offer for sale (OFS) and issuance of fresh equity. Ahead of the opening, the grey market premium (GMP) indicated a muted listing.

Powerica IPO Price Band

The company has set the price band at Rs 375–395 per share and retail investors can make applications for a minimum of 1 lot which comprises 37 equity shares amounting to Rs 14,615.

The IPO of fresh issue aggregates up to Rs 700 crores while the OFS aggregates up to Rs 400 crores. This including eligible employees reservation portion aggregating up to Rs 2 crores and anchor investor portion of 83,39,239 equity shares.

The company is offering a discount of Rs 37 per share to its employees. It has reserved 50% of the issue for qualified institutional buyers (QIBs), up to 35% for retail investors and 15% for non-institutional investors (NIIs).

The company raised Rs 329.39 crore on Monday through anchor investors.

Live Events

Powerica IPO GMP

Powerica IPO's last grey market premium (GMP) stood at Rs 4-5 hinting at a listing price of Rs 400, implying a 1.3% listing gains. The GMP is only an indicative price and could change as the issue progresses.

Powerica IPO net proceeds

The company will utilize Rs 525 crore towards payment of its borrowings while Rs 175 crore for general corporate purposes. The OFS part will go to the selling shareholders.

About Powerica

Powerica is an integrated power solutions provider specialising in diesel generator sets (DG sets), for both primary and standby applications. As one of the Original Equipment Manufacturers (OEMs) for Cummins India Ltd, the company has maintained a strong relationship with them for over four decades.

Powerica manufactures DG sets along with auxiliary items, including acoustic enclosures, fuel and exhaust systems, and customized control panel systems. Building on the experience in the Generator Set Business, the company entered the wind power sector in 2008 as an Independent Power Producer (IPP). Subsequently, it developed capabilities as an Engineering, Procurement and Construction (EPC) contractor as well as an Operation and Maintenance (O&M) service provider for Balance of Plant (BoP). The company through its associate company Platino Automotive, is engaged in the Retrofit Emission Control Devices (RECDs) business, these RECD products provide comprehensive solutions for reducing emissions from existing DG sets.

Powerica Financials

The company's revenue from operations in H1FY26 stood at Rs 1,447 crore while its profit after tax (PAT) stood at Rs 129 crore. For FY25, revenue stood at Rs 2,653 versus Rs 2,210 crore in FY24 and Rs 2,378 in FY23. The PAT stood at Rs versus Rs 167 crore in FY25 and Rs 226 crore in FY24 and Rs 106 crore in FY23.

Powerica IPO lead managers

The Book Running Lead Managers (BRLMs) are ICICI Securities Ltd, IIFL Capital Services Ltd, Nuvama Wealth Management Ltd while the registrar to the issue is MUFG Intime India Pvt Ltd.

Should you bid?

SBI Securities recommends investors to 'Subscribe' the issue for long term, valuing the company at 19.4X annualized FY26 earnings on post-issue capital at the upper band of the issue price.

"Although the revenue has grown only at a mid-single digit CAGR of 5.6% between FY23-FY25, growth has picked up during FY26. Demand for Diesel Generator sets remains strong led by data centers and backup power applications. The company has strong long term relationships with Cummins, Hyundai, Schneider Electric, GE Vernova and Vestas," the brokerage said.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...moreless

(You can now subscribe to our ETMarkets WhatsApp channel)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...moreless

What affects the rupee more — crude oil prices, or FPI sale?

As countries trade gold for guns, can Indian defence stocks be quiet winners?

Looking for a job? This city has plenty, few takers

Soft drink’s Jio moment? RIL’s Campa tests Coke-Pepsi duopoly of 30 years.

Stock Radar: Glenmark Pharma stock retreats from March 2026 record highs; time to buy the dip?

4 stocks with consistent score improvement and upside potential of up to 22% in one year, according to analysts

1

2

3