Powerica IPO Shows Muted Day 1 Response Despite Market Rally

Mumbai, March 24: Powerica Ltd’s ₹1,100-crore IPO continued displaying tepid midday subscription according to BSE data, with cumulative bids for 1,34,754 shares against 2,05,55,171 offered – remaining at 0.01x overall. The mainboard issue (fresh ₹700 crore + OFS ₹400 crore), priced ₹375-395/share (lot: 37 shares, face value ₹5), opened weakly despite Sensex’s 1,300-point surge.

Updated Subscription Breakdown (1:09 PM):

Qualified Institutional Buyers (QIBs): 0.00x (0/58,56,000 shares) – complete institutional absence

Non Institutional Investors (NIIs): 0.00x (15,725/43,92,000 shares); sNII 0.00x (7,400), mNII 0.01x (8,325)

Retail Individual Investors (RIIs): 0.01x (1,08,780/1,02,48,000 shares); cut-off 94,757 shares

Employee Reservation: 0.17x (10,249/59,171 shares) – strongest category

Bidding Pattern: Cut-off price (₹395) drew 97,347 shares; ₹375 level led with 1,26,688 bids. BSE cumulative demand bar graph confirms minimal activity across ₹375-395 bands, with flatline subscription despite Capital Goods sector’s +2% gains.

Powerica’s hybrid power solutions posted FY25 revenue ₹2,300 crore (+15% YoY), 5.68% margins, ROE 14.52x. Upper band P/E ~28x valuation deters QIBs amid renewable energy tailwinds. Employee discount of ₹37/share failed to boost participation.

Market Context: Day 1 coincides with equity rebound from Monday’s Iran panic (Sensex -1,800 pts). Retail shows token interest (0.01x); NIIs await momentum through March 27 close. Yesterday’s ₹329 crore anchor raise from 17 funds contrasts poor public response.

Roadmap: Analysts predict pickup needed for listing premium. Minimum application ₹14,615 (37 shares). Allotment March 30; listing April 2 (BSE/NSE).

ICICI Securities Limited is acting as the book-running lead manager to the issue. It is supported by co-book running lead managers IIFL Capital Services Limited and Nuvama Wealth Management Limited. MUFG Intime India Private Limited has been appointed as the registrar to the issue.

Axis Bank and Kotak Bank will serve as sponsor banks, facilitating the application process, including UPI-based mandates for eligible investors.

Powerica stands as an integrated power solutions provider, excelling in diesel generator sets (DG sets), medium-speed large generators (MSLG), and associated services. The company ventured into wind power in 2008 as an independent producer, evolving into a skilled engineering, procurement, and construction contractor alongside operation and maintenance services for balance-of-plant requirements.

Powerica filed draft papers with Sebi in 2019 to launch an IPO, but later shelved the plan.

Source: https://www.bseindia.com/markets/publicIssues/DisplayIPO.aspxid=4516&type=IPO&idtype=1&status=L&IPONo=7657&startdt=24/Mar/2026