made a weak debut on the stock exchanges on Thursday, listing at a discount to the issue price. The stock saw some intraday gains.
On the , the stock listed at a 7.3 per cent discount at ₹366 compared to the offer price of ₹395, before climbing to a high of ₹388.95. On the , it opened at a 5 per cent discount at ₹375 and rose to ₹388 during the session, remaining below its issue price despite the upward movement.
The has rung in the celebration of the listing of Powerica Limited at our exchange .
— NSE India (@NSEIndia)
Shivani Nyati, Head of Wealth at Swastika Investmart, said the weak debut signals muted sentiment and possible supply pressure despite a reasonably subscribed IPO.
Nyati noted that while the company benefits from an established generator business and global partnerships with Cummins and Hyundai, elevated debt of ₹1,214 crore remains a concern, though partial repayment through IPO proceeds should support the balance sheet.
In the near term, Nyati expects the stock to remain volatile, with the ₹360–₹370 zone acting as support and ₹375–₹395 as a key resistance band. She advised a cautious approach, recommending holding the stock only for those with higher risk appetite while avoiding aggressive fresh buying unless it sustains above ₹395.
The ₹1,100-crore initial public offering of Powerica saw a decent response from investors, with an overall subscription of 1.53 times. The IPO was priced in the range of ₹375 to ₹395 per share and comprised a fresh issue of up to ₹700 crore along with an offer-for-sale of up to ₹400 crore by promoters, including the Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust.
Ahead of the public issue, the company raised ₹329.40 crore from anchor investors, allocating 83,39,239 equity shares at ₹395 apiece. Participation from prominent institutional investors such as SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund and others, along with insurance players like Kotak Mahindra Life Insurance, Edelweiss Life Insurance and Reliance Nippon Life Insurance, highlighted institutional interest in the offering.
Proceeds from the fresh issue are slated to be used primarily for debt repayment and general corporate purposes. Powerica operates as an integrated power solutions provider with a generator set business driven by Cummins-powered DG sets and large generators developed in collaboration with Hyundai. The company also has a presence in the wind energy segment as an independent power producer and EPC contractor.
As per its prospectus, Powerica owns and operates 12 wind power projects in Gujarat with a total installed capacity of 330.85 MW. It is also in the process of developing an additional 52.70 MW project, which will take its total capacity to 383.55 MW.
ICICI Securities acted as the book-running lead manager for the issue, while MUFG Intime India served as the registrar.