Powerica Limited IPO Review, Allotment, Subscription, GMP, Date & DRHP

Powerica Limited is an end-to-end power solution provider of diesel generator sets, both primary and secondary, and they are one of three OEMs for Cummins India. 

Let’s have a detailed review of the company and analytics of the Powerica Limited IPO release date, IPO offer price, subscription, Powerica Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

Powerica Limited IPO Review & Ratings

Summary of Powerica Limited IPO

Powerica Limited is an end-to-end power solution provider of diesel generator sets, both primary and secondary, and they are one of three OEMs for Cummins India. It issued Public offer of up to 7,618,427 Equity Shares for cash at price of Rs.  [●] per Equity Share (including a premium of Rs. [●] per Equity Share) aggregating to Rs. [●] through an Offer for Sale of up to 5,803,229 Equity Shares by the Promoter Selling Shareholders.

And up to 761,843 Equity Shares by the Promoter Group Selling Shareholder, up to 728,141 Equity Shares by the Investor Selling Shareholder and up to 325,214 Equity Shares by the Employee Selling Shareholders. The Net Offer will constitute at least [●]% of the post-Offer paid-up Equity Share capital of the Company.

From FY 2015-16 to FY 2017-2018, as per the Restated Financial Statements,

• The total income was Rs. 6,665.82 million, Rs. 12,913.17 million, Rs. 14,415.43 million and Rs. 13,278.43 million.
• The net asset value per Equity Share was Rs. 257.29 and Rs. 244.91 as of Aug 31, 2018 and March 31, 2018, respectively, as per the Restated Financial Statements.
• The net worth of the Company was Rs. 9800.70 million and Rs. 9329.25 million as of Aug 31, 2018 and March 31, 2018, respectively, as per the Restated Financial Statements
• Their profit was Rs. 562.40 million, Rs. 960.54 million, Rs. 1,180.71 million and Rs. 766.48 million for the six months ended September 30, 2018 and the financial years 2018, 2017 and 2016, respectively.

The Promoters of this company are Naresh Chander Oberoi, Kharatiram Kharak Puri and Bharat Naresh Oberoi. The lead manager to the issue is ICICI Securities Limited, Edelweiss Financial Services Limited and IIFL Holdings Limited and the Registrar to this issue is Link Intime India Private Limited.

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Powerica Limited IPO Date

The opening and the closing date of Powerica Limited IPO is not known yet.

Powerica Limited IPO Subscription

The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.

Powerica Limited IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Powerica Limited IPO Price Band

The face value of each share is Rs 5, but the price band of the IPO is not yet disclosed. 

Powerica Limited IPO Equity Share Offering

Initial public offering of Up to 7,618,427 Equity Shares aggregating up to Rs. [●] million.

Powerica Limited – Company Overview

Powerica Limited is an end-to-end power solution provider of diesel generator sets, both primary and secondary, and they are one of three OEMs for Cummins India. They are into manufacturing, marketing, installation, commissioning and after-sales servicing and maintenance of the diesel generator sets powered by Cummins engines.

They also provide pre-purchase consultancy, design, engineering, sale, installation, lease, operation and maintenance of MSLGs. Also, they are in the wind power business, as an IPP and as EPC (Engineering, Procurement and Construction) developers for other IPPs (Independent Power Produce).

Powerica is diversified into the wind power business and commissioned the first wind power project in 2008. They commenced the EPC business for the own IPP projects in 2012 and for other IPPs in 2014. The wind power projects they own have a total operational capacity of 203.35 MW. They develop, build, own and operate wind power projects that generate electricity for utility companies and since 2014, they have developed balance of plant for wind power projects with aggregate generation capacity of 142.6 MW.

Competitive Strengths of Powerica Limited:

• The established leadership in the diesel generator set market
• Alliances with industry leaders
• Strong technical and execution capabilities
• Large and diversified customer base
• Experienced and proven management team
• Strong financial performance.

Business strategies of Powerica Limited:

• Capitalize on Continued Demand for Generator Sets
• Continue to Develop the Wind Power Business
• Further Develop and Strengthen the Alliances to Improve their Position in India

Powerica Limited – Financial Statements

A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

Financial Summary:

Earnings per Equity Share (in millions)

From the above statements, one could find that the Powerica Limited may perform well.

Powerica Limited IPO – Promoters

The Promoters of this company are:

• Naresh Chander Oberoi,
• Kharatiram Kharak Puri 
• Bharat Naresh Oberoi

List of Related Parties (Key Managerial Personnel)

• Komal Manoj Nagdevis – Company Secretary and Compliance Officer
• Naresh Chander Oberoi – Chairman and Managing Director
• Bharat Naresh Oberoi – Joint Managing Director
• Pradeep Gupta – Executive Director
• Vijay Kumar – Chief Financial Officer
• Sunil Kumar Khurana- Director – Projects of our Company

Interest in promotion of the Company

Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

Property Interest

The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

Interest in Intellectual Rights of the Company

Promoters has not shown any interest in acquiring the intellectual rights of the company.

Powerica Limited IPO Offer Details or Issue Details

Powerica Limited IPO Issue Object

These are the IPO Issue Objects of the company

• Funding the Working Capital requirements of the Company:
•  Repayment/ pre-payment of certain unsecured loans availed from banks and financial institutions by the company; and
•  General Corporate Purposes

Powerica Limited IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

• The established leadership in the diesel generator set market
• Alliances with industry leaders
• Strong technical and execution capabilities
• Large and diversified customer base
• Experienced and proven management team
• Strong financial performance.

The relevant quantitative factors are:

On the basis of standalone statement:-

• Price to Earnings (P/E) ratio in relation to Issue Price of [●] per Equity Share of face value of Rs. 5 each

There are no listed entities in India whose business portfolio is comparable with that of their business.

• Competitive Peers:.

There is no comparable listed peer in India. Accordingly, it is not possible to provide an industry comparison in relation to their Company.

Powerica Limited IPO Lead Managers

Powerica Limited IPO Registrar

Other Details:

• Statutory Auditor – Jayantilal Thakkar & Co.
• Peer Review Auditor – Jayantilal Thakkar & Co.
• Bankers to the Company – Kotak Mahindra Bank, HDFC Bank, Standard Chartered Bank

Powerica Limited IPO Review by Top 10 Stock Brokers

Powerica Limited IPO Grey Market Premium

The Powerica Limited IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 

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Powerica Limited IPO News

News 1 – IPO ISSUE OPENS SOON [Download Prospectus]

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