SBI Mutual Fund buys 6.60% stake in the newly-listed stock Powerica(Powerica website)AI Quick ReadSBI Mutual Fund acquired 57,92,485 shares (a 4.58% ownership) in Powerica during its initial public offering (IPO) on April 01, 2026, bringing its total stake to 83,49,444 shares, which accounts for 6.60% of the paid-up capital.
This move exceeds the 5% regulatory limit, triggering mandatory disclosure obligations from SEBI. The purchase underscores the confidence that institutional investors have in the engineering company.
The acquisition has notably altered SBI Mutual Fund's ownership in Powerica. Prior to this transaction, the fund held 25,56,959 shares, which represented 2.02% of the firm's equity.
SBI Mutual Fund's increased participation in Powerica through the IPO route demonstrates institutional confidence in the company's promising future, as per reports.
The fund house does not belong to the promoter or promoter group, indicating that this investment is purely motivated by financial goals across its various mutual fund schemes, according to news reports.
On Thursday, April 2, shares of power solutions provider Powerica closed more than 2% below the issue price of ₹395 during their first day of trading.
The stock opened at ₹366, reflecting a decline of 7.34% from the issue price on the NSE. Throughout the day, it reached a high of ₹397 and a low of ₹365.10. Ultimately, it finished the day at ₹385 per share, a decrease of 2.53%.
On the BSE, the stock launched at ₹375, down 5.06%. It ultimately settled at ₹390, reflecting a decrease of 1.27%.
By the end of the trading session, the company's market capitalization was recorded at ₹4,935.52 crore on the BSE.
The initial public offering (IPO) of Powerica Ltd, valued at ₹1,100 crore, was fully subscribed by the final day of bidding on Friday, achieving a subscription rate of 1.45 times, supported by demand from institutional investors.
The company set the price range at ₹375-395 per share.
The IPO consisted of a fresh issue of shares totaling ₹700 crore, along with a promoter offer for sale (OFS) amounting to ₹400 crore, as detailed in the red herring prospectus.
Out of the total funds raised, ₹525 crore will be used to reduce the company's debt, while another portion will be allocated for general corporate needs.
This marks the company's second attempt at going public. In 2019, Powerica had submitted draft documents to the Securities and Exchange Board of India (Sebi) to launch an IPO, but the initiative was ultimately abandoned.
Powerica is a comprehensive power solutions provider that focuses on diesel generator sets (DG sets), medium speed large generators (MSLG), and related services.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players.
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At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors.
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Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation.
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Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.