Powerica Files Draft IPO Papers With SEBI for ₹1,400 Crore Issue

Mumbai-based Powerica, a provider of diesel generator solutions and an OEM for Cummins, has taken a key step toward going public. As per news reports, on August 8, the company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), laying the groundwork for an initial public offering of up to ₹1,400 crore. The proposed IPO will comprise equal parts of fresh issuance and an offer-for-sale (OFS), each amounting to ₹700 crore.

Capital Raise Structure and Utilisation of Funds

The IPO will comprise a fresh issue of equity and an OFS, each worth ₹700 crore. Promoters: Naresh Oberoi Family Trust and Kabir and Kimaya Family Private Trust will be selling shares in the OFS. The company may also consider raising up to ₹140 crore in a pre-IPO round.

From the fresh issue proceeds, ₹525 crore is earmarked for the partial repayment of debt, while the balance will support general corporate purposes. “As on July 2025, we have aggregate total outstanding borrowings from banks of ₹1,012.60 crore,” the company stated in its DRHP.

Powerica’s Business Overview and Financials

Established in 1984, Powerica delivers high-speed generator solutions, including DG sets with Cummins engines and MSLG offerings in partnership with Hyundai, alongside allied activities. Generator set operations account for around 85% of the business, with wind power contributing the remaining 15%.

Powerica entered the wind energy sector in 2008 and now operates 11 wind projects in Gujarat with a combined capacity of 279.55 MW. Financially, Powerica reported a profit of ₹166.8 crore for fiscal 2025, down 26.3% year-on-year, while revenue rose 20% to ₹2,653.3 crore. 

ICICI Securities, IIFL Capital Services, and Nuvama Wealth Management have been appointed as merchant bankers for the IPO.

Read More: Torrent Gas Eyes $450 Million IPO to Fund Capex and Reduce Debt!

Conclusion

Powerica’s move to file for a ₹1,400-crore IPO underscores its ambition to strengthen its financial position amid expansion and debt obligations. The infusion of capital, along with strategic debt repayment, positions the company for renewed growth and resilience.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Securities Investments are subject to market risks, read all the related documents carefully before investing.