Powerica's IPO Sparks Market Anticipation Amid Debt Reduction Strategy

Powerica Ltd is launching a Rs 1,100-crore IPO mainly aimed at reducing debt. The offering includes new shares and an offer for sale from shareholders, with the price band set between Rs 375-395. While revenue grew by 20% recently, the company's profit has been in decline.

Powerica Ltd, a renowned power solutions provider, announced its Rs 1,100-crore initial public offering (IPO) is set to open for subscription on March 24. The primary aim is to use the raised funds for debt reduction.

The price band for the IPO has been set between Rs 375 to Rs 395 per share, valuing Powerica at approximately Rs 5,000 crore. The IPO consists of fresh issuance worth Rs 700 crore and an offer for sale (OFS) of Rs 300 crore, significantly trimmed from the Rs 700 crore initially planned.

The company plans to use Rs 525 crore from the fresh issuance to reduce its borrowing, which was Rs 571.95 crore as of September 2025. The IPO will close on March 27, with Powerica expected to debut on the stock market on April 2. ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management are appointed to manage this inaugural public issue.

(With inputs from agencies.)