Powerica IPO Opens March 24: Price Band Set at ₹375-₹395

Introduction to Powerica's Public Offering

Mumbai-based power solutions provider Powerica Limited is set to launch its initial public offering (IPO) on March 24, 2026. The company has fixed a price band of ₹375 to ₹395 per equity share for its ₹1,100 crore public issue. The subscription window will remain open for three days, closing on March 27, 2026. The bidding for anchor investors is scheduled to commence a day earlier, on March 23, 2026. This IPO marks the company's second attempt to go public after a previous plan in 2019 was deferred.

IPO Structure and Offer Details

The ₹1,100 crore IPO is a combination of a fresh issue of shares and an offer for sale (OFS). The company aims to raise ₹700 crore through the issuance of 1.77 crore new equity shares. The remaining ₹400 crore will be raised via an OFS, where existing promoters, including the Naresh Oberoi Family Trust and the Kabir and Kimaya Family Private Trust, will sell 1.01 crore shares. The total issue size has been revised downwards from the initially proposed ₹1,400 crore, which included a larger OFS component.

Investors can bid for a minimum lot of 37 shares, which translates to a minimum investment of ₹14,615 at the upper end of the price band. Bids can be made in multiples of 37 shares thereafter. Additionally, the company has announced a special discount of ₹37 per share for its eligible employees.

Key IPO Timeline and Allotment Details

The IPO process follows a structured timeline, with key dates for investors to monitor. The allotment of shares is expected to be finalized on March 30, 2026. Following the allotment, the shares of Powerica Limited are tentatively scheduled to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on April 2, 2026.

Objectives of the Issue

The primary objective for raising funds through the fresh issue is to strengthen the company's financial position by reducing its debt. Powerica plans to utilize approximately ₹525 crore from the net proceeds to prepay or repay some of its outstanding borrowings. As of February 2026, the company's total outstanding bank borrowings stood at ₹1,214.25 crore. The remaining funds will be allocated for general corporate purposes, providing financial flexibility for future growth and operational needs.

Company Profile and Business Operations

Established in 1983, Powerica Limited is an integrated power solutions provider specializing in the manufacturing and supply of diesel generator (DG) sets. The company is a key original equipment manufacturer (OEM) for Cummins India and offers a wide range of generator sets with capacities from 7.5 kVA to 10,000 kVA. These products cater to diverse industries for both primary and standby power applications. The generator set division is the primary revenue driver, contributing over 80% to the company's business. The remainder of its revenue comes from its operations in the wind power segment. Powerica operates three manufacturing facilities located in Bengaluru, Silvassa, and Khopoli.

Financial Performance Overview

Powerica has demonstrated steady revenue growth. For the six-month period ending September 30, 2025, the company reported a total income of ₹1,474.87 crore and a net profit of ₹134.55 crore. For the full fiscal year 2025, the company's total income was ₹2,710.93 crore, with a net profit of ₹175.83 crore.

Investor Allocation and Market Cap

The IPO has reserved 50% of the issue for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 35% for retail individual investors. At the upper price band of ₹395 per share, the company's post-issue market capitalization is estimated to be around ₹5,000 crore.

Lead Managers and Registrar

The issue is being managed by a consortium of experienced financial institutions. ICICI Securities Ltd, IIFL Capital, and Nuvama Wealth Management are the book-running lead managers. MUFG Intime India Pvt. Ltd. has been appointed as the registrar for the IPO, responsible for managing the allotment and refund processes.

Conclusion

Powerica's IPO presents an opportunity for investors to participate in a well-established power solutions company. The funds raised are primarily aimed at deleveraging the balance sheet, which can improve profitability and financial stability. With a strong market presence in the diesel generator segment and a foothold in wind power, the company is positioned to capitalize on the energy demands of various sectors. The listing on April 2 will be a key event for the company and its new shareholders.