Powerica IPO Final Day: QIB Demand Anchors 1.45x Subscription

Mumbai, March 27: The initial public offering (IPO) of Powerica Limited concluded its three-day bidding window on Friday with a steady finish, garnering an overall subscription of 1.45 times by the close at 5:00 PM IST. The BSE-bound company, operating under the symbol POWERICA, witnessed selective investor participation, with institutional demand providing the primary support in an otherwise measured response across categories.

The issue, comprising 2.05 crore equity shares in a price band of ₹375–395, attracted cumulative bids for approximately 2.98 crore shares. Pricing trends indicated moderate confidence, with nearly 2.98 crore shares bid at the upper end of ₹395, while over 12.1 lakh shares were placed at the cut-off price. The demand pattern reflects cautious optimism among investors, balancing valuation concerns with the company’s growth prospects.

Qualified Institutional Buyers (QIBs) emerged as the backbone of the issue, subscribing their allocated quota 4.50 times. Strong participation was led by mutual funds, which accounted for bids worth 1.74 crore shares, followed by foreign institutional investors (FIIs) with demand for over 87.2 lakh shares. This robust institutional interest played a critical role in lifting the overall subscription, particularly in the final phase of bidding.

In contrast, the Non-Institutional Investor (NII) segment remained subdued, subscribing only 0.44 times its reserved portion. Within this category, high-net-worth individuals (bids above ₹10 lakh) showed marginally better traction at 0.45 times, while the smaller NII segment (₹2–10 lakh bids) closed at 0.43 times. Limited participation from corporates and other entities further weighed on the segment’s performance.

Retail Individual Investors (RIIs) also displayed cautious sentiment, with the category subscribed just 0.15 times. Out of the 1.02 crore shares allocated, bids were received for nearly 14.97 lakh shares, with a majority coming through cut-off applications. The relatively muted retail response suggests hesitancy amid broader market conditions and valuation considerations.

The employee reserved portion, however, stood out with a subscription of 1.23 times, indicating internal confidence in the company’s prospects.

With the IPO now closed, attention turns to the allotment process, which will be handled by MUFG Intime India. The listing performance of Powerica will be closely watched, particularly given the strong institutional backing but tepid retail and high-net-worth participation.

Source: https://www.nseindia.com/market-data/all-upcoming-issues-ipo