The Mumbai-based integrated power solutions company is raising Rs 1,100 crore. Issue opens March 24, closes March 27.
Powerica Limited, a Mumbai-based integrated power solutions provider that has been in the diesel generator set business since 1984, opens its IPO for subscription tomorrow — March 24 — and closes on March 27.
The company is one of the original equipment manufacturers for Cummins India, a relationship it has maintained for over four decades, and offers generator sets ranging from 7.5 kVA to 10,000 kVA.
In 2008 it diversified into wind power, and today operates 12 wind power projects in Gujarat with a total installed capacity of 330.85 MW, backed by long-term fixed-tariff power purchase agreements with GUVNL and SECI. A 52.70 MW project is under construction, bringing the total pipeline to 383.55 MW. Listing is expected on April 2 on BSE and NSE.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | March 24, 2026 |
| Issue Closes | March 27, 2026 |
| Price Band | Rs 375 – Rs 395 per share |
| Issue Size | Rs 1,100 crore |
| Fresh Issue | Rs 700 crore |
| Offer for Sale | Rs 400 crore |
| Face Value | Rs 5 per share |
| Bid Lot | 37 shares and multiples thereof |
| Minimum Investment (Retail) | Rs 14,615 at upper band |
| Employee Discount | Rs 37 per share |
| Post-Issue Market Cap | Rs 4,781 – Rs 4,998 crore |
| QIB / NII / Retail Split | 50% / 15% / 35% |
| BRLMs | ICICI Securities, IIFL Capital Services, Nuvama Wealth Management |
| Registrar | MUFG Intime India Pvt. Ltd |
| Allotment | March 30, 2026 |
| Listing | April 2, 2026 — BSE and NSE |
The OFS component of Rs 400 crore is being offered by the Naresh Oberoi Family Trust (Rs 280 crore) and Kabir and Kimaya Family Private Trust (Rs 120 crore). Promoter shareholding declines from 99.99% pre-issue to 77.98% post-issue.
Objects of the Issue
| Object | Amount (Rs crore) |
|---|---|
| Repayment of outstanding borrowings | 525.00 |
| General corporate purposes | Balance |
| Total Fresh Issue | 700.00 |
Rs 525 crore of the Rs 700 crore fresh issue proceeds — the bulk — goes toward debt repayment. Total borrowings stood at Rs 571.95 crore as of September 2025, which will be nearly eliminated post-IPO, significantly cleaning up the balance sheet and reducing finance costs going forward.
What the Company Does
Powerica operates across two divisions. The Generator Set Business — contributing 80.5% of FY25 revenue — covers DG sets powered by Cummins engines across capacities from 7.5 kVA to 3,750 kVA, medium speed large generators in collaboration with Hyundai from 3,000 kVA to 10,000 kVA, and allied products including EMI shelters for defence applications, acoustic enclosures, and Schneider Electric PRISMA control panels.
The DG set business serves customers across hospitality, healthcare, banking, IT and data centres, logistics, railways, manufacturing, agriculture, government, and defence. The company is currently executing a 63 MW MSLG project for the Nuclear Power Corporation of India worth Rs 247 crore plus USD 52.41 million for imported supplies.
The Wind Power Business contributes the remaining 19.5% of revenue through its independent power producer operations in Gujarat, EPC balance-of-plant contracting for third-party wind projects, and O&M services. The 12 operational wind projects have an average plant availability of 98.72% and are backed by PPAs with an average remaining life of 18 years.
Beyond the wind portfolio, Powerica has entered a joint development agreement with GE Vernova for a proposed 2,000 MW wind-solar hybrid project in Gujarat. An associate company, Platino Automotive, manufactures Retrofit Emission Control Devices for older DG sets and reported EBITDA margins of 36.92% in H1 FY26.
Financials
| Particulars (Rs crore) | FY23 | FY24 | FY25 | H1 FY26 |
|---|---|---|---|---|
| Revenue from Operations | 2,378.26 | 2,210.00 | 2,653.27 | 1,447.44 |
| Revenue Growth | — | (7.07%) | 20.06% | — |
| EBITDA | 333.21 | 362.45 | 345.66 | 220.42 |
| EBITDA Margin | 14.01% | 16.40% | 13.03% | 15.23% |
| PAT | 106.45 | 226.11 | 166.82 | 128.93 |
| PAT Margin | 4.39% | 9.59% | 6.49% | 9.12% |
| EPS — Basic (Rs) | 6.32 | 18.46 | 15.26 | 11.74* |
| RoE | — | 26.50% | 17.53% | 11.60%* |
| RoCE | — | 43.47% | 27.02% | 13.90%* |
| Net Worth | 794.60 | 912.49 | 1,085.60 | 1,214.52 |
| Total Borrowings | 278.88 | 177.52 | 300.80 | 571.95 |
| Net Debt / Equity | 0.31x | 0.16x | 0.24x | 0.40x |
*not annualised
Revenue declined in FY24 before recovering 20% in FY25 to Rs 2,653 crore, with H1 FY26 already at Rs 1,447 crore. PAT and margins have been variable — FY24 was an exceptional year at Rs 226 crore PAT and 9.59% margin, while FY25 came in lower at Rs 166 crore. H1 FY26 shows improvement at 9.12% PAT margin. The borrowings build-up in H1 FY26 to Rs 571 crore reflects capex for wind power expansion — this will come down sharply post-IPO with Rs 525 crore earmarked for repayment. Operating cash flows have been consistently healthy at Rs 219–283 crore annually.
Valuation and Peer Comparison
| Company | Revenue FY25 (Rs cr) | EPS (Rs) | P/E | RoNW |
|---|---|---|---|---|
| Powerica | 2,653.27 | 15.26 | 24.57–25.88x | 15.37% |
| Cummins India | 10,390.69 | 72.15 | 64.13x | 26.45% |
| Kirloskar Oil Engines | 6,349.13 | 33.71 | 43.24x | 15.85% |
| NTPC Green Energy | 2,209.64 | 0.67 | 129.40x | 2.58% |
| Acme Solar Holdings | 1,405.13 | 4.55 | 50.74x | 5.59% |
| Adani Green Energy | 11,212.00 | 8.37 | 101.53x | 11.90% |
At the upper band of Rs 395, Powerica is priced at approximately 25.88x FY25 earnings — a meaningful discount to listed peers across both the generator set and renewable energy segments. Cummins India, the most direct comparable on the generator side, trades at 64x. Kirloskar Oil Engines at 43x.
The renewable energy peers trade at even higher multiples given growth expectations. Powerica’s blended business — part recurring-income wind power, part cyclical generator sets — makes direct peer comparison complex, but on a pure earnings multiple basis the asking price is not stretched relative to the listed universe.
Risks to Consider
Generator set concentration. The Generator Set Business contributes 80.5% of revenue. Any slowdown in DG set demand — driven by improving grid infrastructure, emission regulation tightening, or competition from alternative energy — would have an outsized impact on the business. Cummins dependence. Revenue from Cummins-engine DG sets was 63.6% of total revenue in H1 FY26. The supply agreement is non-exclusive and there is no long-term guarantee. Any disruption in the Cummins relationship would be material. Rising debt in H1 FY26. Borrowings jumped from Rs 300 crore in FY25 to Rs 571 crore in H1 FY26 driven by wind capex. While IPO proceeds will address this, the leverage build-up in a high-rate environment has compressed returns in the near term.