Business Profile of Powerica Limited
Powerica Ltd. was founded in 1994 and it is a leading power solutions company specializing in diesel generator sets (DG sets) for main and backup use. The company provides a comprehensive range of generator sets with capacities ranging from 7.5 kVA to 10,000 kVA, designed to meet the distinctive requirements of diverse applications of industries. Under the business segment of company includes wind power business division (it owns and operates 11 wind power projects in Gujarat, with a total installed capacity of 279.55 MW), generator set business division (includes diesel generator sets powered by Cummins engines – Low Horse power 7.5 kVA to high horse power above 500 kVA) and retrofit emission control devices.
Objective of Powerica Limited IPO
As per the draft red hearing prospects, the IPO issue consists fresh issue and offer for sale. The fresh issue consists of XXXX shares at the face value of ₨ 5.00 each aggregating up to ₹ 7,000.00 million and OFS consists XXXX shares at face value of ₨ 5.00 each aggregating up to ₨ 7,000.00 million. There are fresh shares issues and OFS by company and main objective of company is repayment of outstanding borrowings and general corporate expenses.
Details of Powerica Limited IPO
| IPO Open Date | N.A. |
| IPO Close Date | N.A. |
| Basis of Allotment | N.A. |
| Listing Date | N.A. |
| Face Value | ₹5.00 per share |
| Price | N.A. |
| Lot Size | N.A. |
| Total Issue Size | Up to XXXX shares |
| Aggregating up to ₨ 14,000.00 million. | |
| Fresh Issue | Up to XXXX Equity Shares |
| Aggregating up to ₨ 7000.00 million. | |
| Offer For Sale | Up to XXXX Equity Shares |
| Aggregating up to ₨ 7000.00 million. | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not more than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Powerica Limited IPO: Issue Price & Size
The issue price of POWERICA LIMITED hasn’t been released yet. Upon releasing the dates, the investors can bid between those price ranges. The company has fresh issue and OFS aggregating up to ₹ 14,000.00 million at the price of ₨XXXX.
Launch Date of Powerica Limited IPO
The IPO opening date of POWERICA LIMITED hasn’t been officially announced yet, upon the declaration of dates investor can bid for IPO.
Financial Statements of Powerica Limited
| Particulars | 31-Mar-25 | 31-Mar-24 | 31-Mar-23 |
| Income | |||
| Revenue from Operations | 2,653.27 | 2,210.00 | 2,378.26 |
| Other Income | 57.66 | 146.77 | 44.16 |
| Total Income | 2,710.93 | 2,356.77 | 2,422.42 |
| Expenses : | |||
| Cost of Raw Materials Consumed | 1,787.69 | 1,419.18 | 1,267.34 |
| Purchase of Stock – In – Trade | 12.50 | 25.78 | 307.86 |
| Changes in Inventories of Finished Goods | 14.00 | ( 7.22 ) | ( 6.92 ) |
| Employee Benefit Expense | 114.28 | 113.46 | 94.84 |
| Finance Cost | 32.20 | 40.53 | 56.01 |
| Depreciation & Amortization Expense | 116.46 | 127.98 | 135.51 |
| Other Expenses | 388.17 | 296.33 | 367.74 |
| Total Expenses | 2,465.30 | 2,016.04 | 2,222.38 |
| Restated Profit Before Share of Profit ( Loss ) of Associate | 245.63 | 340.73 | 200.04 |
| Share of Profit ( Loss ) of Associate ( net of tax ) | 9.03 | ( 0.02 ) | ( 14.19 ) |
| Restated Profit Before Tax | 254.66 | 340.71 | 185.85 |
| Tax Expense | |||
| Current Tax | 92.93 | 76.17 | 32.76 |
| Deferred Tax Charge ( Credit ) | ( 14.10 ) | 38.43 | 57.32 |
| MAT Credit Entitlement | – | – | ( 32.54 ) |
| MAT Credit Entitlement of Earlier Years | – | – | 21.86 |
| Restated Profit After Tax | 175.83 | 226.11 | 106.45 |
Key financial ratios of Powerica Limited
| Key Performance Indicators ( KPIs ) | Units | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 |
| Financial Measures | ||||
| Revenue from Operations | ( INR Cr) | 2,653.27 | 2,210.00 | 2.378.26 |
| Total Income | ( INR Cr) | 2,710.93 | 2,356.77 | 2,422.42 |
| Revenue from Generator Set Business | ( INR Cr ) | 2,255.19 | 1,907.20 | 1,968.87 |
| Revenue from Wind Power Business | ( INR Cr ) | 398.08 | 302.80 | 409.39 |
| Revenue from Generator Set Business (%) | ( % ) | 85.00 % | 86.30 % | 82.79 % |
| Revenue from Wind Power Business (%) | ( % ) | 15.00 % | 13.70 % | 17.21 % |
| EBITDA | ( INR Cr ) | 345.66 | 362.45 | 333.21 |
| EBITDA from Generator Sets Business | ( INR Cr) | 188.31 | 245.37 | 204.88 |
| EBITDA from Wind Power Business | ( INR Cr ) | 163.54 | 142.55 | 163.57 |
| EBITDA Margin ( % of Revenues from operations ) | ( % ) | 13.03 % | 16.40 % | 14.01 % |
| Restated PAT | ( INR Cr ) | 175.83 | 226.11 | 106.45 |
| Restated PAT Margin ( % of Total Income ) | ( % ) | 6.49 % | 9.59 % | 4.39 % |
| Net Debt / Equity | Times | 0.24 | 0.16 | 0.31 |
| Net Debt / EBITDA | Times | 0.75 | 0.40 | 0.74 |
| Return on Equity | ( % ) | 17.53 % | 26.50 % | – |
| Return on Capital Employed | ( % ) | 27.02 % | 43.47 % | – |
| Receivable Days | Days | 55 | 53 | 40 |
| Payable Days | Days | 36 | 50 | 36 |
| Inventory Days | Days | 28 | 45 | 31 |
Promoters & Shareholding Powerica Limited IPO
As of date, according to the DRHP filed with SEBI promoters and promoter group have 100.00% shareholding in company.
| Name of Shareholders | Number of Equity Shares | Percentage of Equity share |
| Promoters & Promoters group (A) | ||
| Naresh Chander Oberoi | 326,400 | 0.30 |
| Bharat Oberoi | 551,828 | 0.51 |
| Renu Naresh Oberoi | 1,85,348 | 0.17 |
| Jai Ram Oberoi | 4,000 | N.A. |
| Naresh Oberoi Family Trust | 3,80,00,000 | 34.92 |
| Bharat Oberoi Family Trust | 52,210,200 | 47.98 |
| Kabir and Kimaya Family Private Trust | 1,75,36,428 | 16.11 |
| Total (A) | 10,88,14,204 | 99.99 |
| Public (B) | 11,196 | 0.01 |
| Total ( A + B ) | 10,88,25,400 | 100% |
Should You Subscribe To Powerica Limited IPO
While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.
Competitive Strengths of Powerica Limited IPO
Established position in the generator set market
The company has been engaged in the business of DG sets and present across a wide suite of DG sets across LHP, MHP and HHP, with capacities ranging from 7.5 kVA to 3,750 kVA. As part of the MSLG business offerings, company currently provide pre-purchase consultancy, design and engineering, sale, and O&M services integrated with Hyundai-made MSLG sets, with capacities ranging from 3,000 kVA to 10,000 kVA single unit which can be configured in multiples for parallel operation at base load power stations.
Collaborations with established industry players
The company has formed alliances with established players in their respective fields in order to remain competitive, grow in a dynamic industry landscape and to enhance company technical capabilities. The strong and enduring relationships with companies such as Cummins, Hyundai, GE Vernova, Vestas and others help in improve credibility, reputation, fostering trust, and demonstrating technical capabilities.
Strong technical and execution capabilities
Technical capabilities of company encompass advanced manufacturing processes, precision engineering, and rigorous quality control measures, ensuring consistency, reliability and innovation in every product. The company has used technology such as 3D-modelling to design complex projects, to ensure the integrity of all electrical system designs, irrespective of size or complexity of the project to ensure smooth and timely implementation of projects on site. Further, company venture into the MSLG business, enabled it to develop strong in-house project expertise which they utilize for their EPC business.
Large and diversified customer base
The company has large and diversified customer base in India. The DG set customers of company operate across diverse sectors, including commercial (hospitality, healthcare, banking and financial services industry – banks, education, residential and other real estate), infrastructure, manufacturing, agriculture, information technology/data centres, government and defense, and rentals. The company leveraged its experience to develop customized products for customers leading to mutually beneficial relationships with them.
Risk Factors of Powerica Limited IPO
High dependence on generator business
The company is significantly dependent on its generator set business which contributed 85.00%, 86.30%, and 82.79% of company revenue from operations in Fiscals 2025, 2024 and 2023, respectively. The reliance on the long-established Generator Set Business significantly increases company exposure to sector-specific and product specific risks. Any negative developments affecting Generator Set Business could have a material adverse impact on company business.
Wind power business exposed to OEM risks
The independent power producer (“IPP”) operations in Wind Power Business which contributed 7.56%, 9.90% and 8.76% of total revenue from operations for Fiscals 2025, 2024 and 2023, respectively rely on key relationships with OEMs to facilitate supply of components and effective O&M services across most of company Operational Wind Power Projects, as well as for future IPP developments. Any deterioration in these relationships, or performance or financial failure of OEMs, could adversely affect on company operations, and financial condition.
Regulatory and weather variability risk
The performance of company Operational Wind Power Projects is significantly affected by seasonality, regulatory requirements, and environmental and physical conditions, all of which are subject to variability and unpredictability. As a result, environmental and physical uncertainties, could adversely affect actual output, revenues, and the overall financial performance of company wind power projects.
Trade receivable risks
The company is exposed to credit risk from customers and the recoverability of its trade receivables is subject to uncertainties. The company extends certain credit periods to some of its customers and is therefore exposed to credit risk from such customers. Adverse macroeconomic conditions may increase the likelihood of financial difficulties for company customers, including insolvency or bankruptcy, which could result in delayed payments or requests for revised payment terms.
Powerica Limited IPO Grey Market Premium
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies’ stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the POWERICA LIMITED is trading around Rs XX in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.
