Powerica IPO Subscribed 1.45 Times on Final Day, QIB Demand Drives Momentum
Institutional Buying Lifts Powerica IPO Subscription
New Delhi, March 27: The initial public offering of power solutions provider Powerica Ltd closed on a firm note on Friday, with the issue subscribed 1.45 times on the final day of bidding, supported primarily by strong institutional participation.The Rs 1,100 crore IPO received bids for 2,98,57,816 shares against 2,05,55,171 shares on offer, as per NSE data.
QIB Segment Sees Strong Response, Retail Participation Muted
The Qualified Institutional Buyers portion led the demand, recording a robust 4.50 times subscription.In contrast, the non-institutional investor category was subscribed 44 per cent, while the retail individual investors segment saw a relatively muted response at 15 per cent.
Anchor Investment and Price Band Details
Ahead of the public issue, Powerica Ltd raised Rs 329.40 crore from anchor investors on Monday.The IPO was offered in a price band of Rs 375 to Rs 395 per share, valuing the company at nearly Rs 5,000 crore.
Issue Structure and Utilisation of Funds
The public issue comprises a fresh issue of shares worth Rs 700 crore and an offer for sale of Rs 400 crore by promoters, according to the red herring prospectus.Out of the fresh issue proceeds, Rs 525 crore is earmarked for debt reduction, while the remaining funds will be used for general corporate purposes.
Second Attempt at Public Listing
This marks Powerica’s second attempt to tap the capital markets. The company had earlier filed draft papers with the market regulator in 2019 but did not proceed with the IPO at that time.Business Overview of Powerica Ltd
Powerica Ltd operates as an integrated power solutions provider, focusing on diesel generator sets, medium speed large generators, and associated services.The company expanded into the wind power segment in 2008 as an independent power producer. It has since developed capabilities across engineering, procurement and construction, along with operation and maintenance services for balance of plant.
Powerica currently operates manufacturing facilities in Bengaluru, Silvassa in Dadra and Nagar Haveli, and Khopoli in Maharashtra.
IPO Lead Managers
ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management are managing the public issue.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.