The ₹1,100-crore initial public offering of Powerica IPO opens today. The price band for the IPO is set between ₹375 and ₹395 per share. The market lot is 37 shares. The IPO will close on March 27.
Qualified Institutional Buyers (QIBs) will be offered up to 50% of the issue. Retail investors will be allocated a minimum of 35%. At least 15% will be reserved for Non-Institutional Investors.
The IPO is a fresh issue of up to ₹700 crore and an offer-for-sale for up to ₹400 crore by promoters – Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust.
Powerica Ltd has garnered ₹329.40 crore from anchor investors ahead of the IPO.
The Company informed the bourses that it allocated 83,39,239 equity shares at ₹395 per share to anchor investors. Some of the marquee institutions that participated in the anchor include SBI Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Kotak Mutual Fund, Quant Mutual Fund, Bandhan Mutual Fund, Ashoka Whiteoak, ITI Mutual Fund and Bank of India Mutual Fund. Further, participation was also seen from life insurance companies such as Kotak Mahindra Life Insurance, Edelweiss Life Insurance and Reliance Nippon Life Insurance.
Use of proceeds
Funds raised through the fresh issue will be used to repay debt and for general corporate purposes.
The Company is an integrated power solutions with generator set business comprising of DG sets powered by Cummins engines, medium speed large generators offerings in collaboration with Hyundai, and certain allied business activities and present in the wind power sector as an independent power producer (“IPP”) and engineering, procurement and construction contractor as well as an operation and maintenance service provider for balance of plant.
As of the date of the Red Herring Prospectus, the Company owns and operates 12 wind power projects in Gujarat, with a total installed capacity of 330.85 MW. In addition to its operational wind power projects, the Company is constructing a 52.70 MW wind power project in Gujarat, bringing its IPP portfolio to a total installed capacity of 383.55 MW.
ICICI Securities Ltd. is the book-running lead manager, and MUFG Intime India Ltd. is the registrar of the issue.