Powerica IPO Day 3 update as subscription reaches 3% with latest GMP movement

Powerica IPO, valued at ₹1,100 crore, has seen a muted response with a 3% subscription on Day 2 (March 25). The issue is priced at ₹375–₹395 per share, valuing the company at around ₹5,000 crore. Ahead of the opening, the company raised ₹329.40 crore from anchor investors, including leading mutual funds and insurance companies. The IPO comprises a fresh issue of ₹700 crore and an offer-for-sale of ₹300 crore, with ₹525 crore from the fresh proceeds earmarked for debt reduction. The issue is reserved 50% for QIBs, 35% for retail investors, and 15% for NIIs, while the employee portion has shown strong interest with 81% subscription. Retail subscription stood at 4%, NII at 1%, while QIBs are yet to participate. The latest GMP has dropped to Re 1, indicating an estimated listing price of around ₹396, just 0.25% above the upper band, reflecting weak listing expectations. Analysts remain divided—some recommend subscribing for the long term due to its diversified power solutions business and strong partnerships, while others advise caution due to declining profitability, high dependence on key partners like Cummins, and limited short-term gains. The allotment is expected on March 30, with listing likely on April 2, 2026.