Power solutions provider Powerica Ltd. is launching an initial public offering (IPO) to raise over Rs 1,000 crore from the primary market. In the build-up to its opening on March 24, its grey market premium (GMP) indicated a premium of 1% for the issue. Investors who want to bid for shares in the IPO must check the following details before making an investment call.
Powerica IPO GMP Today
The GMP for the Powerica IPO stood at Rs 4 as of 9:30 a.m. on March 23, as per InvestorGain. It indicates a listing price of Rs 399 apiece at a premium of 1.01% on the upper limit of the price band.
Note: GMP does not represent official data and is based on speculation.
Powerica IPO: Key Details
The Powerica IPO is a book-built issue of Rs 1,100 crore. It comprises a fresh issue of 1.77 crore shares worth Rs 700 crore and an offer-for-sale (OFS) of 1.01 crore shares amounting to Rs 400 crore.
Retail investors can participate in the IPO by bidding for a single lot comprising 37 shares, leading to an investment of Rs 14,615. Small Non-Institutional Investors have to bid for 14 lots, requiring an investment of Rs 2,04,610. Big Non-Institutional Investors need to bid for a minimum of 69 lots, amounting to Rs 10,08,435.
The price band for the IPO is set between Rs 375 and Rs 395 per share.
Investors can bid for shares in the IPO from March 24 to March 27. Allotment of shares will be finalised on March 30. The company will transfer shares to the demat accounts of successful bidders on April 1, and non-allottees will get refunds on the same day.
Shares of the company are scheduled to list on the BSE and NSE on April 2.
Qualified Institutional Buyers (QIBs) will be offered a maximum of 50% of the issue. Retail investors will be allocated a minimum of 35%. At least 15% will be reserved for Non-Institutional Investors.
ICICI Securities Ltd. is the book running lead manager and MUFG Intime India Ltd. is the registrar of the issue.
Use Of Proceeds
The company will use proceeds from the IPO to clear debt and for general corporate purposes.
About Powerica
Powerica is a power solutions provider specialising in manufacturing and servicing diesel generator sets. It was established in 1984.
Financials
The company reported a 26.3% year-on-year (YoY) decrease in net profit to Rs 166.82 crore in FY25 from Rs 226.28 crore in FY24. Revenue from operations rose 20% YoY to Rs 2,653.27 crore in FY25 from Rs 2,210 crore in FY24
Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.
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