New Delhi, April 2 Shares of Powerica Ltd, a provider of power solutions, made a lackluster debut on Thursday, listing at a discount of over 7 per cent from the issue price of Rs 395.
The stock listed at Rs 366, down 7.34 per cent from the issue price on the NSE.
On the BSE, it debuted at Rs 375, registering a decline of 5.06 per cent against the issue price.
The company's market capitalization stood at Rs 4,684.95 crore on the NSE.
The listing came amid a weak overall trend, with benchmark indices trading lower. The 30-share BSE Sensex plunged 1,494.27 points, or 2.04 per cent, to 71,640.05. The 50-share NSE Nifty fell 466.15 points, or 2.06 per cent, to 22,213.25.
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 consisted 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, 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 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 balance of plant.
The company operates three manufacturing facilities in Bengaluru; Silvassa in Dadra and Nagar Haveli; and Khopoli, Maharashtra.
