Powerica Ltd Shares List at Discount, Make Weak Market Debut
Stock Lists Below Issue Price on NSE and BSE
New Delhi, April 2: Shares of Powerica Ltd, a power solutions provider, made a subdued entry into the stock market on Thursday, listing at a discount of over 7 per cent compared to its issue price of Rs 395.On the NSE, the stock debuted at Rs 366, reflecting a decline of 7.34 per cent from the issue price. On the BSE, it opened at Rs 375, marking a fall of 5.06 per cent.
The company’s market capitalisation stood at Rs 4,684.95 crore on the NSE following the listing.
Weak Market Sentiment Weighs on Listing
The listing came amid a broader market downturn, with benchmark indices trading sharply lower. The BSE Sensex dropped 1,494.27 points, or 2.04 per cent, to 71,640.05, while the NSE Nifty declined 466.15 points, or 2.06 per cent, to 22,213.25.IPO Subscription and Structure Details
Powerica Ltd’s Rs 1,100 crore IPO witnessed moderate demand, getting subscribed 1.45 times on the final day of bidding on Friday. The issue saw support primarily from institutional investors.The price band for the IPO was set at Rs 375 to Rs 395 per share.
The public issue comprised a fresh issue of shares worth Rs 700 crore and an offer for sale of Rs 400 crore by promoters, as outlined in the red herring prospectus.
Utilisation of IPO Proceeds
Out of the fresh issue proceeds, Rs 525 crore is earmarked for debt reduction. The remaining funds will be used for general corporate purposes.Second Attempt at Going Public
This marks Powerica’s second attempt to tap the public 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 operates as an integrated power solutions provider, focusing on diesel generator sets, medium speed large generators, and related services.The company also expanded into the wind power sector in 2008 as an independent power producer. Over time, it has developed capabilities in engineering, procurement, and construction, along with operation and maintenance services for balance of plant.
Powerica currently runs manufacturing facilities in Bengaluru, Silvassa in Dadra and Nagar Haveli, and Khopoli in Maharashtra.
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