Powerica share price made a lacklustre debut in the Indian stock market on Thursday, April 2, as it listed at a discount to the initial public offering (IPO) price of ₹395.
Powerica share price opened at ₹365 apiece on NSE, down 7%. Meanwhile, on BSE, it listed at ₹375, a discount of 5% to the offer price.
The listing of Powerica IPO came in below the market expectations. Ahead of the market debut, the GMP of Powerica IPO was +7. This means that the estimated listing price was ₹402, which is 1.77% higher than the IPO price of ₹395.
Powerica IPO details
Powerica IPO was fully subscribed on the last day of bidding, driven by strong interest from qualified institutional buyers (QIBs). The QIB segment saw 4.34 times subscription, while the retail portion was subscribed 8%, and the non-institutional investors (NII) category received 0.17 times bids.
Powerica’s IPO, worth ₹1,100.21 crore, was a book-built issue comprising a fresh issue of 1.77 crore shares amounting to ₹700.21 crore, along with an offer for sale of 1.01 crore shares totalling ₹400 crore. The OFS saw stake sales by the Naresh Oberoi Family Trust and the Kabir and Kimaya Family Private Trust.
The IPO price band was set at ₹395 per share, with a face value of ₹5 per share.
Funds raised through the fresh issue will largely go toward debt reduction, with ₹525 crore earmarked for this purpose, while the balance will be utilised for general corporate purposes.
Powerica is an integrated power solutions company focused on diesel generator (DG) sets, medium-speed large generators (MSLG), and associated services. It entered the wind energy space in 2008 as an independent power producer and has since broadened its portfolio to include engineering, procurement and construction (EPC), along with operations and maintenance services.
The IPO is being managed by ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
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