Integrated power solutions provider Powerica has filed its Draft Red Herring Prospectus (DRHP) with market regulator SEBI for an IPO aggregating up to INR 1,400 crore. The offer will comprise a fresh issue of equity shares worth INR 700 crore and an offer for sale (OFS) of shares worth another INR 700 crore by promoter selling shareholders.
The IPO proceeds will be used for repayment/prepayment of certain borrowings (INR 525 crore) and for general corporate purposes.
Powerica IPO: Promoter Group & OFS Details
The promoter group includes Naresh Chander Oberoi, Bharat Oberoi, Renu Naresh Oberoi, Jai Ram Oberoi, and promoter family trusts — Naresh Oberoi Family Trust, Bharat Oberoi Family Trust, and Kabir & Kimaya Family Private Trust.
The Naresh Oberoi Family Trust will offload shares worth up to INR 490 crore, while the Kabir & Kimaya Family Private Trust will sell up to INR 210 crore worth of equity in the OFS.
Shareholding Pattern
According to the DRHP, the major shareholders are:
- Bharat Oberoi Family Trust – 47.98% (5.22 crore shares)
- Naresh Oberoi Family Trust – 34.92% (3.80 crore shares)
- Kabir & Kimaya Family Private Trust – 16.11% (1.75 crore shares)
These three together hold 99.01% of the company’s equity.
Business Overview
Founded in 1984, Powerica is a diversified energy solutions company with two main verticals:
- Generator Set Business – Manufacturing diesel generator (DG) sets powered by Cummins engines (7.5 kVA to 3,750 kVA) and medium speed large generators (MSLG) in collaboration with Hyundai (3,000 kVA to 10,000 kVA), along with allied products such as acoustic enclosures, EMI shelters, and Schneider Electric’s PRISMA control panels.
- The company operates three manufacturing facilities in Bengaluru (Karnataka), Silvassa (Dadra & Nagar Haveli), and Khopoli (Maharashtra).
- Extensive sales network: 19 sales offices, 126 sales personnel, and 32 authorised dealers.
- Client sectors include hospitality, healthcare, banking, infrastructure, manufacturing, agriculture, IT/data centres, government, and defence.
- Wind Power Business – Entered in 2008; operates as an independent power producer (IPP) with EPC and O&M capabilities for balance of plant (BoP).
- Operational capacity: 279.55 MW across 11 projects in Gujarat, with long-term PPAs (25 years) primarily with GUVNL and SECI.
- Under-construction projects: Orchid Phase I (51.3 MW) and Orchid Phase II (52.7 MW), both with SECI.
- Pipeline: 250 MW wind + 30 MW solar under early development in Gujarat.
- EPC for BoP track record: 11 projects (399.10 MW), including own and third-party IPPs.
The company also has a stake in Platino Automotive, an associate that manufactures retrofit emission control devices (RECDs) for existing DG sets, generating INR 75.92 crore in FY25 revenues with ~34% EBITDA margins.
Financial Performance
Powerica has maintained a balanced revenue mix and healthy profitability:
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue from Operations | 2,378.26 | 2,210.00 | 2,653.27 |
| EBITDA | 333.21 | 362.45 | 345.66 |
| PAT | 106.45 | 226.11 | 175.83 |
| EBITDA Margin (%) | 14.01% | 16.40% | 13.03% |
| PAT Margin (%) | 4.39% | 9.59% | 6.49% |
| Net Debt/EBITDA | 0.74x | 0.40x | 0.75x |
Segment Revenue FY25:
- Generator Set Business: INR 2,255.19 crore (85% of revenue)
- DG sets powered by Cummins: INR 1,867.56 crore
- MSLG (Hyundai): INR 45.70 crore
- Allied businesses: INR 341.93 crore
- Wind Power Business: INR 398.08 crore (15% of revenue)
- IPP: INR 200.69 crore
- EPC/O&M for BoP: INR 197.40 crore
Industry Position and Market Drivers
- Long-standing 40+ year OEM relationship with Cummins and a decade-long collaboration with Hyundai.
- Demand tailwinds from data centre expansion, grid reliability gaps, and renewable energy transition.
- India’s data centre power capacity is projected to grow at a 20.5% CAGR to 3.395 GW by FY2030, boosting demand for high-capacity DG sets.
- Government and defence sectors expected to drive 6–8% annual DG demand growth through 2030.
Lead Managers & Registrar
- Book Running Lead Managers: ICICI Securities, IIFL Capital Services, Nuvama Wealth Management
- Registrar: MUFG Intime India
Final Words
Powerica presents itself as a hybrid energy play — commanding a strong position in conventional DG sets while building scale in renewables. The healthy balance sheet, diversified client base, and recurring revenues from long-term PPAs offer stability, while the EPC and allied businesses provide growth avenues.
However, investors should watch for margin volatility (seen in the drop from FY24 to FY25), competitive pricing pressures in the DG segment, and execution risks in its pipeline of renewable projects.
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