Powerica
IPO Size: Rs. 1,100 cr
- Fresh Issue of Rs. 700 cr for repaying Rs. 525 cr of Rs. 1,214 cr debt, as of 28.2.26
- Offer for Sale (OFS) of Rs. 400 cr, by thepromoter (100% to shrink to 78%)
Price band: Rs. 375-395 per share
M cap: Rs. 4,998 cr, implying 22% dilution
IPO Date: Tue 24th Mar to Fri 27th Mar 2026, Listing Thu 2nd Apr 2026
Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.
Power Solutions Provider
Powerica Limited is a Mumbai based company engaged in two business segments:
- Generator Set Business (Rs. 2,300 cr topline with 10% EBITDA margin): Manufacturer of diesel generator (DG sets) with capacities ranging from 7.5 kVA to 10,000 kVA i.e. manufactures low, medium and high horse power DG sets, at 3 plants in Khopoli (Maharashtra), Silvassa (Dadra Nagar Haveli) and Bengaluru (Karnataka). Being an original equipment manufacturer (OEM) for Cummins India for over 4 decades, it also has collaboration with Hyundai Heavy Industries for medium speed large generators.
- Wind Power Business (Rs. 600 cr topline with 37% EBITDA margin): Independent Power Producer operating 12 wind projects aggregating 331 MW power project in Gujarat, besides an under-construction 53 MW, to be commercialized by Mar 2027 and pipeline of 280 MW, all in Gujarat. In addition, it undertakes EPC and O&M (operations and maintenance) business for balance of plant (BoP), having completed 12 projects, aggregating 450 MW installed capacity till date. Also established a 51:49 JV with GE Vernova for joint development of wind and hybrid projects.
Healthy Financials
FY25 revenue stood at Rs. 2,653 cr, with an EBITDA of Rs. 345 cr and PAT of Rs. 167 cr. Generator set business accounts for 85% of Rs. 3,000 cr topline, and 54% of Rs. 440 cr EBITDA, implying 15% EBITDA margin and 9% PAT margin, at company level.
H1FY26 revenue was Rs. 1,447 cr with EBITDA of Rs. 221 cr and PAT of Rs. 129 cr, with EPS of Rs. 12 for H1FY26, against Rs. 15 for FY25.
Attractive Pricing
M cap of Rs. 5,000 cr and Enterprise Value of Rs. 5,250 cr implies an EV/EBITDA multiple of 12x, on FY26E basis. Business is a mix of capital goods and power production, wherein renewable power producers like Acme Solar and Clean Max are trading at similar EV/EBITDA multiple, while capital goods players like Cummins and Kirloskar Oil Engines, command higher valuation multiple. Thus, on a blended basis, Powerica’s valuation multiple is seen attractive. On a current year basis, PE multiple stands at 16.7x, on FY26E PAT of about Rs. 260 cr.
Being Cummins engines supplier with capital work in progress of Rs. 429 cr for wind project business, on Rs. 800 cr net Fixed Assets, growth visibility is healthy.
24th Mar 2026 at 08:11 pm