Powerica IPO: Brokerages bet on long term prospects; should you apply?

SBI Securities recommends investors to 'Subscribe' to the issue for the long term, while Swastika advised investors to apply with caution, recommending the issue only for risk-tolerant

Powerica IPO: Powerica, a power solutions company, is set to launch its initial public offering (IPO) on Tuesday, March 24, 2026. The company aims to raise ₹1,100 crore from its maiden public issue. The mainline offering comprises a combination of fresh issue of 17.7 million equity shares amounting to ₹700 crore and an offer for sale (OFS) of 10.1 million equity shares amounting to ₹400 crore. Under the OFS, Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust will divest a part of their stake. 

 

The company has reserved not more than 50 per cent of the issue for Qualified Institutional Buyers (QIBs), not less than 15 per cent for Non-Institutional Investors (NIIs), and not less than 35 per cent for retail investors.

 

Powerica IPO GMP

On Monday, March 23, the unlisted shares of Powerica were trading flat at 395, the upper end of the price band of ₹375 to ₹395, according to sources tracking unofficial markets.

Powerica IPO: Here's what the brokerages suggest

SBI Securities - Subscribe

According to analysts, while the revenue has grown only at a mid-single digit CAGR of 5.6 per cent FY23-FY25, growth has picked up during FY26. Demand for Diesel Generator sets remains strong, led by data centres and backup power applications. The company has strong long-term relationships with Cummins, Hyundai, Schneider Electric, GE Vernova and Vestas.

 

"At the upper band of issue price of ₹395, the IPO is valued at 19.4x annualised FY26 earnings on post-issue capital," the brokerage said in its note. 

 

SBI Securities recommends investors to 'Subscribe' to the issue for the long term.

Swastika Investmart - Neutral

Swastika Investmart said Powerica is reasonably valued at 24.45x P/E compared to higher-valued peers, but flagged concerns over inconsistent financial performance. The brokerage noted that margins declined to 12.76 per cent in FY25 from 15.38 per cent in FY24, while net profit fell 22 per cent year-on-year alongside shrinking Ebitda margins, indicating rising cost pressures.

 

According to the brokerage, while revenue grew around 15 per cent Y-o-Y in FY25, it did not translate into bottom-line growth. Swastika advised investors to apply with caution, recommending the issue only for risk-tolerant, long-term investors, and suggesting a small allocation rather than chasing listing gains.

Here are the key details of the Powerica IPO:

The three-day subscription window to bid for the Powerica IPO will close on Friday, March 27, 2026. The allotment of shares is expected to be finalised on Monday, March 30, 2026. The successful allottees will receive the company's shares in their respective demat accounts on Wednesday, April 1, 2026. 

 

Shares of Powerica will make their debut on the exchanges, NSE and BSE, tentatively on Thursday, April 2, 2026. 

 

The company has set the price band in the range of ₹375 to ₹395, with a lot size of 37 shares. A retail investor would require a minimum investment of ₹14,615 to bid for at least one lot and in multiples thereafter.

 

MUFG Intime India is the registrar. ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management are the book-running lead managers for the issue.

 

According to the red herring prospectus (RHP), the company plans to use ₹525 crore from the net fresh issue proceeds for prepayment or repayment of certain borrowings availed by the company, and the remaining funds will be used for general corporate purposes.