Powerica’s IPO worth Rs 1,100 crore is struggling to garner investor interest, as it was subscribed just 3% by the close of its second day of bidding. Alongside its muted subscription, the shares of the power solutions provider too are trading flat in the unlisted markets.
The issue which opened on Tuesday, March 24 will close on Friday, March 27, with no bidding taking place tomorrow as stock exchanges will remain closed for the occasion of Shri Ram Navami.
Of the total float, Powerica aims to raise capital worth Rs 700 crore via the issuance of fresh equity shares of Rs 5 each, while the remaining Rs 400 crore will be raised via the offer for sale (OFS) route.
So what lies ahead for the issue? Here are the key details to look out for.
Powerica IPO: Day 2 subscription status
The offer closed its second day of bidding having been subscribed by just 3%. The employee segment led the pack, being subscribed 0.81 times. The retail investor segment was subscribed 4% , receiving 4.23 lakh bids against its offer of 1.02 crore shares.
The non-institutional segment was subscribed just 1%, receiving over 51 thousand bids against its offering of over 43 lakh shares, while the Qualified Institutional Buyers (QIB) segment was flat, receiving zero subscription.
Powerica IPO: Day 2 GMP status
In the unlisted markets, the shares of Powerica are trading at a marginal premium of 0.5%, suggesting an estimated listing price of Rs 397 (based on the upper price band). As per the markets tracker, on the first day of bidding the shares were trading at a premium of 1%.
However, it is important to note that grey market premium is an unofficial metric to determine the listing price and may fluctuate based on market conditions.
The price band for shares is fixed at Rs 375 to Rs 395.
Powerica IPO: Expert take
How are experts gauging the IPO?
“At the upper price band of Rs 395, Powerica is valued at an adj. P/E of 28x for FY25 EPS and 19x for FY26 EPS projection on an annualised basis. The company’s topline has improved momentum in H1FY26, with strong demand visibility for DG (diesel generator) sets driven by data centers and rising power demand. Its wind energy business provides higher-margin potential, and strong relationships with global players further enhance growth prospects. With a healthy ROE of 17.5% and an improved D/E ratio, the balance sheet should be able to support project execution in the wind sector. Hence we assign a Subscribe rating for a long-term investment horizon,” Geojit Investments said in its report.
Anand Rathi Research Team, giving a ‘Subscribe-Long Term‘ rating to the issue, said, “On the valuation front, based on annualized FY26 earnings, the company is seeking a P/E of 19.4x times, and a post-issue market capitalization of approximately Rs 49,986 million, making the issue appear to be reasonably priced. We believe that, going forward, demand for Diesel Generator sets remains strong, led by data centers and backup power applications. However, since the company is operating in a highly competitive and fragmented segment, growth is seen over a long period based on consistency of revenue and profitability.”
Deven Choksey Research remains optimistic over the company’s near-to-medium-term outlook given the company’s entrenched market position and strong demand tailwinds in both verticals. However, the brokerage flags its long-term technologies as a key risk monitorable.
“Based on our primary estimates and SOTP-based valuation of the DG Set business at ₹3,200 crore (25x FY27E) and Wind Business at ₹2,400 crore (4x EV/MW on old wind assets and 6x EV/MW on upcoming wind assets), we find the company’s IPO valuation of INR 5,000 crore at the upper price band leaves little room for Wind service/spares & EPC business growth optionality alongside faster-than-expected demand uptake from DC & AI-driven demand for DG sets in the near term,” the brokerage said in its report.