The Powerica IPO has opened to a lukewarm response, with subscription rates lagging significantly. As of Day 1, only 1% of the issue has been booked, raising alarms among potential investors.
The IPO, which commenced on March 24, 2026, is a book-building issue valued at ₹1,100 crores. It will remain open for subscription until March 27, 2026, but early indicators suggest a challenging road ahead.
Investors are eyeing the price band set between ₹375 and ₹395 per share, with a minimum lot size of 37 shares required for application. However, the initial response from Retail Individual Investors is just 0.01 times, while Non-Institutional and Qualified Institutional Buyers have yet to show interest.
Adding to the uncertainty, the Grey Market Premium (GMP) for Powerica Limited is currently reported at ₹5, a figure that may not inspire confidence in the offering. The allotment process is expected to be finalized on March 30, 2026, with shares slated for listing on both BSE and NSE on April 2, 2026.
Powerica Limited, a key authorized dealer of Cummins India, has been providing power solutions since 1983. The company plans to allocate ₹525 crores from the fresh issue to repay and prepay debt, which could impact its financial stability.
As the IPO progresses, the low subscription rates may lead to further scrutiny of Powerica’s market position and investor confidence. Details remain unconfirmed regarding potential strategies to boost interest in the offering.
