Powerica's IPO Charge: Powering Ahead with Strong Subscription

Powerica Ltd's IPO successfully closed with a 1.45 times subscription, led by strong institutional interest. The Rs 1,100-crore offering included a mix of fresh shares and promoter sales. Raised funds will primarily address debt reduction. The company offers integrated power solutions and has ventured into wind power since 2008.

Powerica Ltd saw its initial public offering (IPO) successfully close, with the subscription reaching 1.45 times on the final bidding day. Strong buying interest from institutional investors played a significant role in this positive outcome.

The Rs 1,100-crore IPO comprised a fresh issue worth Rs 700 crore and a promoter-led offer for sale totaling Rs 400 crore. The Qualified Institutional Buyers (QIBs) quota was notably well-received, achieving 4.50 times subscription, while retail investors showed moderate interest with 15 percent subscription.

Founded as an integrated power solutions provider, Powerica branched into the wind power sector in 2008. The company will use the funds raised primarily for debt reduction. The IPO marks Powerica's second attempt at going public after a halted 2019 effort.

(With inputs from agencies.)