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Powerica Ltd, a provider of integrated power solutions, is launching a Rs 1,100 crore initial public offering, combining a fresh share issue of Rs 700 crore with an offer for sale of Rs 300 crore by promoters. The IPO, priced at Rs 375-395 per share and valuing the company at around Rs 5,000 crore, will primarily fund debt reduction. Bidding for anchor investors will occur before the public subscription opens, with the stock expected to debut in early April. The company has seen revenue growth, though net profit has declined recently.
Powerica Ltd, a company providing integrated power solutions, has announced that its Rs 1,100 crore initial public offering will open for subscription later this month. The funds raised will mainly be used to reduce the company's debt. Advertisement
The IPO has been priced in the range of Rs 375-395 per share, which gives the company a valuation of nearly Rs 5,000 crore. It consists of a fresh issue of Rs 700 crore and an offer for sale of Rs 300 crore by promoters. Earlier, the OFS was planned at Rs 700 crore, but it has now been reduced, bringing the total IPO size down from Rs 1,400 crore initially proposed in the draft papers filed in August 2025. Under the OFS, shares will be sold by Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust.
The company will close the public subscription by the end of this week, after anchor investor bidding takes place just prior. Powerica is expected to make its stock market debut in early April. Of the fresh issue proceeds, around Rs 525 crore will go towards reducing debt, with the remainder allocated for general corporate purposes. As of September 30, 2025, the company's total borrowings stood at INR 571.95 crore, according to the red herring prospectus.
This marks Powerica's second attempt at going public. The company had earlier filed draft papers with the Securities and Exchange Board of India in 2019 but had shelved the plan.
Powerica specialises in diesel generator sets, medium speed large generators, and related services. It entered the wind power sector in 2008 as an independent power producer and has since developed capabilities in engineering, procurement, construction, and operation and maintenance of balance of plant projects. The company has three manufacturing facilities located in Bengaluru, Silvassa (Dadra and Nagar Haveli), and Khopoli (Maharashtra).
Financially, Powerica recorded a 20 per cent increase in revenue from operations, reaching Rs 2,653 crore in FY25, compared with Rs 2,210 crore the previous fiscal year. However, profit after tax fell to Rs 175.83 crore from Rs 226.11 crore in FY24.
Regarding the IPO allocation, half of the shares are reserved for qualified institutional buyers, 35 per cent for retail investors, and the remaining 15 per cent for non-institutional investors. ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management have been appointed to manage the issue.
Source PTI
FAQ
Q1: What is the size and structure of Powerica's IPO?
A1: Powerica Ltd's IPO is valued at Rs 1,100 crore, combining a fresh share issue of Rs 700 crore and an offer-for-sale (OFS) of Rs 300 crore by promoters. Initially, the OFS was proposed at Rs 700 crore, bringing the total draft IPO size to Rs 1,400 crore, but it was later revised down. The company is targeting a valuation of around Rs 5,000 crore, with shares priced between Rs 375 and Rs 395.
Q2: What is the primary purpose of the IPO proceeds?
A2: The main goal of the IPO is debt reduction. Around Rs 525 crore of the fresh issue proceeds will be used to reduce existing borrowings, which stood at Rs 571.95 crore as of September 30, 2025. The remaining funds are earmarked for general corporate purposes, helping strengthen the company's financial position.
Q3: Who are the selling shareholders under the OFS?
A3: The OFS portion will be offered by the promoters through the Naresh Oberoi Family Trust and the Kabir & Kimaya Family Private Trust. The reduction in OFS size from Rs 700 crore to Rs 300 crore indicates a strategic decision to retain promoter holdings while still allowing partial divestment.
Q4: When will the IPO subscription open, and what is the expected listing timeline?
A4: Anchor investor bidding is set to take place first, followed by the public subscription later this month, closing by the end of the week. Powerica's shares are expected to make their stock market debut in early April 2026.
Q5: What sectors and products does Powerica operate in?
A5: Powerica specializes in diesel generator sets, medium-speed large generators, and associated services. The company entered the wind power sector in 2008 as an independent power producer and now provides end-to-end solutions in engineering, procurement, construction, and operation & maintenance of balance of plant projects. It has three manufacturing facilities located in Bengaluru, Silvassa, and Khopoli.
Q6: How has Powerica performed financially in recent years?
A6: In FY25, Powerica's revenue grew by 20% to Rs 2,653 crore, up from Rs 2,210 crore in FY24. However, net profit declined to Rs 175.83 crore from Rs 226.11 crore in the previous year. This decline reflects higher operational costs and strategic investments ahead of expansion plans.
Q7: How will the IPO shares be allocated among investors?
A7: The IPO allocation is structured as 50% for qualified institutional buyers (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors. ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management are managing the issue, overseeing the subscription process, and ensuring smooth allocation to investors.
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