Powerica Limited, a leading power solutions company in India, filed an application with SEBI in August 2025 to raise ₹1,400 crore through an Initial Public Offering (IPO). The company is known for its diesel generator sets (DG Sets) and is also active in the wind energy sector. In this article, we will explain all the important details about Powerica’s IPO in simple language.
What Will Powerica’s IPO Look Like?
Powerica’s IPO will be worth a total of ₹1,400 crore, divided into two parts:
- ₹700 crore as Fresh Issue (new shares issued)
- ₹700 crore as Offer for Sale (OFS) (shares sold by existing shareholders)
How Will the IPO Money Be Used?
The money raised from the IPO will be used as follows:
- ₹525 crore to repay existing loans
- The remaining amount for general corporate purposes and new projects
This will help strengthen the company’s financial health and reduce its debt burden.
About the Company
Powerica was established in 1984 and is a major manufacturer of diesel generator sets. The company also acts as an Original Equipment Manufacturer (OEM) for big brands like Cummins in India.
Additionally, Powerica entered the wind energy sector in 2008 and currently operates 11 wind power projects in Gujarat with a total capacity of over 279 megawatts.
Company’s Financial Performance
- For the financial year 2025, Powerica reported revenue of about ₹2,653 crore, which is an increase of around 20% compared to the previous year.
- However, its net profit decreased by approximately 22%, standing near ₹176 crore.
- As of July 2025, the company had outstanding debt of ₹1,012 crore.
What Should Investors Know?
- The IPO will help reduce the company’s debt, improving its financial stability in the future.
- Expansion in the wind energy sector opens new growth opportunities.
- Investors should keep an eye on the company’s declining net profit and high debt levels.
When Will the IPO Open?
The exact dates, price band, and application process for the IPO have not been announced yet. Investors are advised to regularly check the company’s official website and SEBI’s website for updates.
Outcome
Powerica’s IPO could be a good opportunity for those interested in investing in the power and energy sector.
Like all investments, it carries risks, so it is important to gather full information and understand the details before investing.
Note:
This article is based on Powerica’s official IPO filings and financial reports. Investors should carefully read the Draft Red Herring Prospectus (DRHP) and consult financial advisors if needed before making investment decisions.
Source: https://www.powericaltd.com/investor-relations/pdf/Powerica%20%20DRHP.pdf
