IPO Overview
Powerica Limited is a leading power solutions provider specialising in diesel generator sets (DG sets) for both primary and backup applications. Its product portfolio covers a wide capacity range from 7.5 kVA to 10,000 kVA, catering to varied industrial needs. The business operates through three divisions: DG sets powered by Cummins engines across low, medium, and high horsepower segments with manufacturing units in Bengaluru, Silvassa, and Khopoli; a wind power division with 11 projects in Gujarat totalling 279.55 MW; and retrofit emission control devices through its associate, Platino Automotive.
Mumbai-based Powerica has set the price band at ₹375 to ₹395 per share. The ₹1,100 crore issue comprises a fresh issue of ₹700 crore and an OFS component of ₹400 crore. The company was originally founded in 1984 and is now going public on the Mainboard with listing on both BSE and NSE.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – Mainboard |
| Listing Exchange | BSE & NSE |
| Anchor Investor Date | 23 March 2026 |
| IPO Open Date | 24 March 2026 |
| IPO Close Date | 27 March 2026 |
| Allotment Date | 30 March 2026 (Expected) |
| Credit to Demat | 01 April 2026 |
| Listing Date | 02 April 2026 (Tentative) |
| Price Band | ₹375 – ₹395 per share |
| Face Value | ₹5 per share |
| Lot Size | 37 shares |
| Minimum Investment (Retail) | ₹14,615 (1 lot) |
| Minimum Investment (sNII) | ₹2,04,610 (14 lots = 518 shares) |
| Minimum Investment (bNII) | ₹10,08,435 (69 lots = 2,553 shares) |
| Issue Size | ₹1,100 crore |
| Fresh Issue | ₹700 crore |
| Offer For Sale (OFS) | ₹400 crore (1,01,26,582 shares) |
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | 50% |
| Non-Institutional Investors (NII) | 15% |
| Retail Individual Investors (RII) | 35% |
OFS / Selling Shareholders
The promoters of the company are Naresh Chander Oberoi, Bharat Oberoi, Renu Naresh Oberoi, Jai Ram Oberoi, Naresh Oberoi Family Trust, Bharat Oberoi Family Trust, and Kabir and Kimaya Family Private Trust. The OFS proceeds of ₹400 crore will go to these selling promoter shareholders.
Objects of the Issue (Fund Utilization)
The company plans to use ₹525 crore of the fresh issue proceeds to repay certain outstanding debts, with the remainder allocated for general corporate purposes. As of February 2026, Powerica’s outstanding bank borrowings stood at ₹1,214.25 crore.
- Repayment / prepayment of borrowings — ₹525 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Managers: ICICI Securities Ltd., IIFL Capital Services Ltd., Nuvama Wealth Management Ltd.
- Registrar to the Issue: MUFG Intime India Pvt. Ltd.
- Phone: +91-22-4918 6270
- Email: [email protected]
- Company Website: www.powericaltd.com
Promoters & Management
- Founder: Naresh Chander Oberoi (40+ years in the generator set industry)
- Chairman & Managing Director: Mr. Bharat Oberoi
- Whole-time Director: Mr. Pradeep Gupta
- Group CFO: Mr. Ritesh Agrawal
The company is led by an experienced and proven management team with decades of industry expertise, with the founder Naresh Chander Oberoi having over 40 years in the generator set industry.
Company Details
Powerica is an integrated power solutions provider with a diversified presence across conventional power generation equipment and renewable energy infrastructure. Its core Generator Set Business, established in 1984, spans diesel generator sets powered by Cummins engines and medium speed large generators (MSLG) offered in collaboration with HD Hyundai Heavy Industries.
Sectors Served:
- Hospitality & Healthcare
- Banking & Financial Services
- Infrastructure & Construction
- Manufacturing & Agriculture
- IT & Data Centres
- Government & Defence
- Rental Power
Key Products & Divisions:
- Generator sets ranging from 7.5 kVA to 10,000 kVA catering to diverse industrial, commercial, and infrastructure requirements
- 11 wind power projects in Gujarat with a total installed capacity of 279.55 MW
- Retrofit Emission Control Devices (RECD) through its associate Platino Automotive
Manufacturing Facilities:
- Manufacturing facilities located at Bengaluru (Karnataka), Silvassa (Dadra and Nagar Haveli), and Khopoli (Maharashtra)
Power Purchase Agreements (Wind Business):
- Long-term PPAs with financially strong counterparties like GUVNL (Gujarat Urja Vikas Nigam Ltd.) and SECI (Solar Energy Corporation of India), ensuring predictable and stable cash flows with low credit risk.
Financial Snapshot
| Period | Revenue (₹ Cr) | PAT (₹ Cr) |
| FY23 | ₹2,422 | ₹106 |
| FY24 | ₹2,356 | ₹226 |
| FY25 | ₹2,710 | ₹175 |
| H1 FY26 (Sep 2025) | ₹1,447 | ₹129 |
Key Financial Metrics
- ROE: 17.53% | ROCE: 27.02% | EBITDA Margin: 15.23% | PAT Margin: 9.12% | Debt/Equity: 0.40
- Post-issue market capitalisation expected to be close to ₹5,000 crore at the upper price band.
- Revenue grew from ₹2,356.77 crore in FY24 to ₹2,710.93 crore in FY25, however PAT declined from ₹226.11 crore in FY24 to ₹175.83 crore in FY25, indicating margin pressure despite higher scale.
Peer Comparison (P/E):
- Cummins India: 64.1x
- Kirloskar Oil Engines: 43.2x
- Powerica (post-IPO): To be determined at listing
Company Strengths
- Diversified customer base across multiple sectors including commercial, infrastructure, and government, reducing dependence on any single industry.
- One of Cummins India’s OEMs for over four decades — a deeply entrenched and trusted partnership spanning the entire DG set value chain.
- Renewable energy diversification through 279.55 MW of wind power capacity adds long-term sustainability to the revenue mix.
- Three strategically located manufacturing facilities supporting nationwide execution and delivery capability.
- Long-term PPAs with GUVNL and SECI ensuring predictable cash flows from the wind power segment with low credit risk.
- Strong H1 FY26 performance — ₹129 crore PAT in just 6 months suggesting full-year profit recovery.
Key Risks & Challenges
- PAT declined from ₹226 crore in FY24 to ₹175 crore in FY25 despite higher revenue — indicating margin pressure and profit volatility.
- The company is highly dependent on Cummins for both its revenue and supply chain — DG sets powered by Cummins engines contributed over 63% of total revenue in H1 FY26.
- The generator set business alone contributed over 80% of total revenue — any demand drop in the DG set market or a shift towards alternative power solutions could significantly impact the business.
- High Debt: Outstanding borrowings of ₹1,214.25 crore as of February 2026, though IPO proceeds will partially reduce this.
- The company, its subsidiaries, promoters, and directors are involved in certain ongoing legal proceedings, and any adverse judgments could be detrimental to business prospects.
- Large OFS component: ₹400 crore out of ₹1,100 crore goes to promoters — signals partial promoter exit.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
