Powerica Ltd Aims for IPO Revival to Raise Rs 1,400 Crore

Powerica Ltd has filed with Sebi for an IPO to raise Rs 1,400 crore. This includes a fresh issue worth Rs 700 crore and an Offer For Sale (OFS) of Rs 700 crore. Funds from the IPO will be used to repay company debt and other purposes. Powerica also explores pre-placement options.

Powerica Ltd, a prominent power solutions provider, has officially submitted preliminary documents to India's market regulator, Sebi, aiming to secure approval for an Initial Public Offering (IPO) that targets Rs 1,400 crore. This move seeks to bolster the company's financial footing and propel future growth.

The proposed IPO comprises a fresh issue of shares amounting to Rs 700 crore, alongside an Offer For Sale (OFS) valued at Rs 700 crore by its promoters, as detailed in the company's Draft Red Herring Prospectus (DRHP). Major stakeholders Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust plan to divest shares worth Rs 490 crore and Rs 210 crore, respectively.

In preparation, Powerica may explore a Rs 140 crore pre-placement round, potentially reducing the fresh issue size. The funds raised will alleviate the company's substantial debt burden of Rs 525 crore while supporting broader corporate objectives. Noteworthy, this IPO bid marks Powerica's second attempt, following an aborted 2019 effort.

(With inputs from agencies.)