Powerica files ₹1,400cr IPO papers with SEBI
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 proposed IPO will comprise a fresh issue of shares worth up to ₹700 crore and an offer-for-sale by Naresh Oberoi Family Trust and Kabir & Kimaya Family Private Trust.
Fund utilization
Fresh share issue to be used for repayment of borrowings
The funds raised from the fresh share issue will be used for prepayment/repayment of certain outstanding borrowings availed by Powerica, in part or full. The company also plans to use a portion of the funds for general corporate purposes. In consultation with book-running lead managers, Powerica may consider a pre-IPO placement worth up to ₹140 crore, which would reduce the size of the fresh issue if completed.
Company profile
What does Powerica do?
Founded in 1994, Powerica has been manufacturing, marketing, supplying, installing/testing/commissioning diesel generator (DG) sets. The company also undertakes related on-site works. It has a long-standing relationship with Cummins as an OEM for over four decades. Powerica's DG set customers span across various sectors such as hospitality, healthcare, banking & financial services industry (BFSI), education, residential & other real estate sectors.
Wind power
Expansion into wind power sector
In 2008, Powerica expanded into the wind power sector as an independent power producer (IPP). The company has since steadily grown its presence in Gujarat. As of March 31, 2025, Powerica owned and operated 11 operational wind power projects in Gujarat with a total installed capacity of 279.55MW. It is also constructing two more wind power projects with a combined capacity of 104MW in Gujarat to further expand its IPP portfolio.
Financial growth
Revenue from operations grew by over 20% in FY25
Powerica's revenue from operations grew 20.06% from ₹2,210 crore in FY 2024 to ₹2,653.27 crore in FY 2025. The growth was mainly due to increased sales of high horsepower (HHP) DG sets and other services. The company's profit after tax stood at ₹175.83 crore for FY 2025 compared to ₹226.11 crore for the previous fiscal year. ICICI Securities Limited, IIFL Capital Services Limited and Nuvama Wealth Management Limited are the book-running lead managers for Powerica's IPO.