The initial public offering (IPO) of power solutions provider Powerica has entered its third and final day of the bidding process on Friday, March 27. So far, the offer has received a tepid response. It was booked just 3% by the end of the second day of bidding.
Powerica IPO, worth ₹1,100 crore, has a price band of ₹375–395 per share, valuing the company at around ₹5,000 crores.
The public issue comprises a fresh issue of shares worth ₹700 crore and an Offer for Sale (OFS) of ₹400 crore by promoters, as per the red herring prospectus (RHP). Under the OFS, shares will be sold by the Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust.
Proceeds from the fresh issue will primarily be used to reduce debt, with ₹Rs 525 crore allocated for this purpose, while the remaining funds will be used for general corporate needs.
Powerica operates as an integrated power solutions provider, specializing in diesel generator sets (DG sets), medium-speed large generators (MSLG), and related services. It also ventured into the wind power sector in 2008 as an independent power producer and has since expanded its capabilities to include engineering, procurement, and construction (EPC), as well as operation and maintenance services.
ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management are managing the public issue.
Powerica IPO GMP
Powerica IPO GMP today is ₹1. This means that shares of Powerica are trading ₹1 above the issue price of ₹395 in the gray market. At the prevailing GMP, Powerica IPO shares are expected to list at just 0.25% premium.
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