New Delhi, April 2 Shares of Powerica, a provider of power solutions, closed over 2 per cent lower on Thursday compared to the issue price of Rs 395 in its debut trade.
The stock listed at Rs 366, falling 7.34 per cent from the issue price on the NSE. During the day, it reached a high of Rs 397 and a low of Rs 365.10. The stock later closed at Rs 385 per share, down 2.53 per cent.
On the BSE, it debuted at Rs 375, down 5.06 per cent. The stock settled at Rs 390, down 1.27 per cent.
At the end of the market session, the company's market capitalization stood at Rs 4,935.52 crore on the BSE.
In terms of volume on the exchanges, 1.61 crore equity shares of Powerica Ltd were traded on the NSE, while 3.02 lakh shares were traded on the BSE during the day.
The 30-share BSE Sensex climbed 185.23 points, or 0.25 per cent, to close at 73,319.55, while the 50-share NSE Nifty gained 33.70 points, or 0.15 per cent to close at 22,713.10.
The Rs 1,100-crore initial public offering (IPO) of Powerica Ltd was successful on the last day of bidding on Friday, getting subscribed 1.45 times, amid buying support from institutional investors.
The company had fixed the price band at Rs 375-395 per share.
The IPO was a combination of a fresh issue of shares worth Rs 700 crore, along with an offer for sale (OFS) of shares valued at Rs 400 crore by promoters, according to the red herring prospectus.
Of the fresh issuance, funds worth Rs 525 crore will be used to reduce the company's debt, and a portion will be used for general corporate purposes.
This was the company's second attempt to go public. In 2019, Powerica had filed draft papers with the Securities and Exchange Board of India (Sebi) to float an IPO. However, the plan was shelved.
Powerica is an integrated power solutions provider specializing in diesel generator sets (DG sets), medium speed large generators (MSLG), and related services.
Furthermore, the company expanded into the wind power sector in 2008 as an independent power producer and has since developed capabilities as an engineering, procurement, and construction contractor, as well as an operation and maintenance service provider for balance of plant.
The company operates three manufacturing facilities in Bengaluru; Silvassa in Dadra and Nagar Haveli; and Khopoli, Maharashtra.