Powerica IPO to Open on March 24; Company Targets Debt Reduction with ₹1,100 Crore Issue
Price Band Set at ₹375 to ₹395 Per Share
New Delhi, March 18: Power solutions provider Powerica Ltd has announced that its initial public offering (IPO) will open for subscription on March 24, with a primary focus on reducing its debt burden.The company has fixed the price band at ₹375 to ₹395 per share, placing its overall valuation at nearly ₹5,000 crore.
Issue Structure Revised; OFS Size Reduced
According to the red herring prospectus, the IPO consists of a fresh issue of shares worth ₹700 crore and an offer for sale (OFS) of ₹300 crore by existing promoters.The OFS component has been reduced from ₹700 crore, bringing down the total IPO size to ₹1,000 crore from the earlier proposed ₹1,400 crore outlined in draft papers filed in August 2025.
Shares under the OFS will be sold by the Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust.
Key Dates and Listing Timeline
The IPO will close on March 27, while anchor investor bidding is scheduled for March 23. Powerica is set to list on the stock exchanges on April 2.Utilisation of Proceeds Focused on Debt Reduction
Out of the fresh issue proceeds, ₹525 crore will be allocated towards repayment or reduction of the company’s debt. The remaining funds will be used for general corporate purposes.As per the prospectus, Powerica’s total borrowings stood at ₹571.95 crore as of September 30, 2025.
Business Overview and Operations
Powerica operates as an integrated power solutions provider, with a focus on diesel generator sets, medium speed large generators, and associated services.The company entered the wind power segment in 2008 as an independent power producer and has since expanded its capabilities to include engineering, procurement, and construction, along with operation and maintenance services for balance of plant.
It currently operates three manufacturing facilities located in Bengaluru, Silvassa, and Khopoli.
Financial Performance
For FY25, Powerica reported a 20 per cent increase in revenue from operations to ₹2,653 crore, up from ₹2,210 crore in the previous fiscal year.However, profit after tax declined to ₹175.83 crore in FY25 compared to ₹226.11 crore in FY24.
Investor Allocation and Book Running Lead Managers
The IPO allocation is divided with 50 per cent reserved for qualified institutional buyers, 35 per cent for retail investors, and 15 per cent for non-institutional investors.ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management have been appointed as the book running lead managers for the issue.
Second Attempt at Public Listing
This marks Powerica’s second attempt to go public. The company had earlier filed draft IPO papers with the market regulator in 2019 but did not proceed with the offering at that time.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.