Powerica IPO: Powerika, who is doing the business of generator set, wants to raise up to Rs 1400 crore through its IPO. For this, the company has submitted draft papers with the Capital Market Regulator SEBI. New shares of Rs 700 crore will be issued in the IPO, along with the same amount of shares for the same rupee will be for SAIL (O.S). Promoter Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust will keep the shares for sale in OFS.
Powerica specializes in the diesel generator set. It is also included in the original equipment manufactures for cumrins. Powerica started in 1984. The company is also in the business of wind power. It can consider raising up to Rs 140 crore in the pre-IPO round. If this happens, the size of the issue of new shares in the IPO will decrease.
How to use IPO money
Out of the money received by issuing new shares in the IPO, 525 crore rupees will be used to some extent to shock the debt. The rest of the money will be for normal corporate purposes. The company said in its draft Red Herring Prospects (DRHP) deposited on August 8 that by July 2025, it owed a total loan of Rs 1012.60 crore from banks.
Powerrica’s financial health
Powerika’s profit in FY 2025 fell by 26.3 percent to Rs 166.8 crore. Revenue increased by 20 percent to Rs 2653.3 crore on an annual basis. ICICI Securities, IIFL Capital Services and Nuwama are wealth management merchant bankers for IPO. Powerica has a share of generator set business in the total business of 85 percent. At the same time, Wind Power Business accounts for 15 percent. The company has 11 wind energy projects with a total established capacity of 279.55 MW in Gujarat.
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