New Delhi, March 27 The initial public offering (IPO) of power solutions provider Powerica Ltd was a success on the last day of bidding on Friday, with subscriptions 1.45 times the offer, driven by buying interest from institutional investors.
The Rs 1,100-crore IPO received bids for 2,98,57,816 shares against 2,05,55,171 shares on offer, according to information available with the NSE.
The portion for Qualified Institutional Buyers (QIBs) saw a subscription of 4.50 times. The category for non-institutional investors received 44 per cent subscription, while the quota for retail individual investors (RIIs) was subscribed to 15 per cent.
Powerica Ltd raised Rs 329.40 crore from anchor investors on Monday.
The price band has been set at Rs 375-395 per share, valuing the company at nearly Rs 5,000 crore.
The IPO consists 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 (RHP).
Of the fresh issuance, Rs 525 crore will be used to reduce the company's debt, with the remaining funds allocated to 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 launch an IPO. However, the plan was eventually abandoned.
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 entered 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 the balance of plant.
The company operates three manufacturing facilities in Bengaluru; Silvassa in Dadra and Nagar Haveli; and Khopoli, Maharashtra.
ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management are the lead managers for the IPO.