The Securities and Exchange Board of India (SEBI) has granted its final approval to Mumbai-based Powerica Ltd for its proposed initial public offering (IPO). The company is set to raise a total of ₹1,400 crore from the public markets, marking a significant step in its corporate journey.
IPO Structure and Fund Allocation
The ₹1,400 crore public issue comprises two equal parts. A fresh equity issuance worth ₹700 crore will bring new capital into the company. Simultaneously, an offer for sale (OFS) of another ₹700 crore will be undertaken by the promoter entities—the Naresh Oberoi Family Trust and the Kabir and Kimaya Family Private Trust.
The company has outlined clear plans for the proceeds from the fresh issue. A substantial portion, ₹525 crore, is earmarked for the partial or full repayment and prepayment of certain existing borrowings. The remaining funds will be allocated for general corporate purposes, providing the company with financial flexibility for future growth.
Powerica's Business and Market Presence
Powerica operates in the diesel generator (DG) set business, with a comprehensive model covering manufacturing, marketing, supply, and complete SITC services—which include installation, testing, and commissioning. A key strength of the company is its long-standing partnership with global engine giant Cummins, an association it has maintained for over 40 years as an OEM partner.
The company's DG sets serve a diverse clientele across multiple sectors:
- Commercial: Hospitality, healthcare, BFSI, education, and real estate.
- Infrastructure: Retail, logistics, railways, and metro systems.
- Manufacturing: Industrial units, process industries, and dairy.
- Agriculture: Cold storage and aquaculture facilities.
- Other Key Sectors: IT/data centres, government and defence, and the rental market.
Its operational footprint includes three manufacturing plants located in Bengaluru, Silvassa, and Khopoli. Supported by a network of 19 sales and marketing offices, a corporate office, a 126-member sales team, and 32 authorised dealers, Powerica has established a pan-India presence.
Financial Performance and Issue Details
The company has demonstrated robust financial growth in recent years. According to its Draft Red Herring Prospectus (DRHP), operating revenue increased to ₹2,653.27 crore in FY25 from ₹2,378.3 crore in FY23. More impressively, net profit surged to ₹175.83 crore in FY25 from ₹106.5 crore in FY23, highlighting improving profitability.
The company filed its draft papers with SEBI on August 8, 2025. The lead managers to the issue are ICICI Securities Limited, IIFL Capital Services Limited, and Nuvama Wealth Management Limited. MUFG Intime India Private Limited will act as the registrar. Upon completion of the IPO, the shares of Powerica are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Disclaimer: This news article is for informational purposes only. Readers are advised to consult with a certified investment advisor before making any financial decisions.
