Powerica raises Rs 329 crore from anchor investors ahead of IPO

Mumbai-based diesel generator and power solutions manufacturer Powerica has raised Rs 329.4 crore from 17 anchor investors ahead of its public issue, which opened on March 24. The company allotted 83.39 lakh shares at the upper end of its price band of Rs 375–395 per share.

Domestic mutual funds led the anchor book, with eight fund houses subscribing to nearly 70 lakh shares across 11 schemes. SBI Funds Management was the largest anchor investor, followed by HDFC AMC, ICICI Prudential Mutual Fund, and Kotak Mahindra AMC. Participation also came from life insurers including Kotak Mahindra Life, Edelweiss Life, and Reliance Nippon Life, along with foreign institutional investors such as Custody Bank of Japan and Ashoka WhiteOak.

Issue structure and use of proceeds

The Rs 1,100 crore IPO comprises a fresh issue of Rs 700 crore and an offer-for-sale (OFS) of Rs 400 crore. The issue is scheduled to close on March 27.

Of the fresh issue proceeds, Rs 525 crore has been allocated toward debt repayment, with the remaining amount earmarked for general corporate purposes.

Powerica manufactures diesel generator sets for Cummins India and medium-speed large generators for Hyundai, with manufacturing facilities located in Bengaluru, Silvassa, and Khopoli. ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management are managing the issue.

The featured photograph is for representation only.