Powerica's IPO: From Diesel Generators to Wind Power

Powerica Ltd's initial public offering (IPO) witnessed a modest start, securing just 1% subscription on its first day. The IPO received bids for 2,07,681 shares, while the company offers a total of 2,05,55,171 shares, according to National Stock Exchange (NSE) data.

Retail individual investors showed slightly more interest, with a 2% subscription rate, while non-institutional investors matched the overall 1%. Prior to the public offering, Powerica attracted Rs 329.40 crore from anchor investors. The Rs 1,100-crore IPO is set to conclude on March 27, with a price band of Rs 375 to Rs 395 per share, giving the company a near Rs 5,000 crore valuation.

The offering includes a fresh issue of shares worth Rs 700 crore and an Offer For Sale (OFS) of Rs 400 crore, involving shares offloaded by major stakeholders such as the Naresh Oberoi Family Trust. In addition to reducing debt, proceeds will serve general corporate purposes. Powerica, known for its diesel generator sets, has expanded into the wind power sector since 2008 and operates three manufacturing locations across India.