This Mumbai-based company has filed papers for a ₹1,400cr IPO
What's the story
Mumbai-based power solutions provider, Powerica Limited, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is looking to raise ₹1,400 crore through an Initial Public Offering (IPO). The IPO will be a combination of a fresh issue of shares worth up to ₹700 crore and an offer-for-sale.
Offer details
IPO to include a ₹490cr OFS
The IPO will have a face value of ₹5 per share. It includes an offer-for-sale by Naresh Oberoi Family Trust (up to ₹490 crore) and Kabir and Kimaya Family Private Trust (up to ₹210 crore). The company is also reserving a portion of the offer for eligible employees, who will get a discount on shares in this category.
Fund utilization
Company may conduct pre-IPO placement
Powerica intends to use the proceeds from its fresh issue, worth ₹525 crore, for prepaying/repaying certain outstanding borrowings and general corporate purposes. The company may also consider a pre-IPO placement of up to ₹140 crore in consultation with the book-running lead managers. If this is done, the size of the fresh issue will be reduced accordingly.
Company profile
Powerica has been in business since 1994
Incorporated in 1994, Powerica has been in the business of diesel generator sets (DG sets) across low horsepower (LHP), medium horsepower (MHP), and high horsepower (HHP). The company is an original equipment manufacturer for Cummins and has been associated with them for over four decades. It also expanded into the Medium Speed Large Generators (MSLG) business in 1996 to widen its offerings in the generator sets sector.