Powerica IPO Struggles With Weak Demand On Final Day

Powerica Limited’s IPO, which opened earlier this week, has faced sluggish demand from investors. With subscription levels at just 3% after three days, the final day of bidding will determine whether the issue manages to sail through or risks undersubscription.

Subscription Status
The IPO comprises a fresh issue of ₹700 crore and an offer for sale worth ₹400 crore. As of Day 3, retail investors subscribed only 0.04 times, while qualified institutional buyers (QIBs) remained absent. Non-institutional investors also showed minimal interest, reflecting weak overall demand.

Market Sentiment
Muted grey market premium (GMP) and cautious investor outlook have weighed heavily on the IPO. Analysts point to Powerica’s dependence on diesel generator sets a sector facing headwinds from clean energy transitions as a factor limiting enthusiasm.

Outlook Ahead
Unless institutional investors step in on the final day, the IPO risks undersubscription. Market experts suggest last-minute activity could improve numbers, but overall sentiment remains subdued.

Key Highlights

• Powerica IPO worth ₹1,100 crore
• Day 3 subscription only 3%
• Retail portion subscribed 0.04 times
• QIBs show no bids yet
• Muted grey market premium signals weak demand

Sources: Financial Express, Moneycontrol, Business Standard, IPO Watch