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Synopsis: Waaree Energies, a prominent solar PV module manufacturer, made a notable entrance on the stock market, listing at a premium of around 70% over its issue price. Despite commanding high premiums in the grey market before its listing, the stock's performance on the day slightly trailed expectations. The company raised over Rs4,321 crore through its IPO, drawing significant interest from institutional and retail investors alike.
Waaree Energies, a leading player in the solar energy sector, debuted strongly on the stock exchanges, listing at Rs2,550 on the BSE and Rs2,500 on the NSE, reflecting premiums of 69.66% and 66.33%, respectively, over its issue price of Rs1,503. This strong performance marked a successful beginning for the company, though it was slightly below the expectations set by the grey market premiums (GMP).
Ahead of the listing, Waaree Energies' shares were trading at a premium of Rs1,300-1,350 in the unofficial market, indicating a potential listing gain of around 90%. However, the actual market debut saw a premium of about 70%, with the GMP having surged to Rs1,500-1,550 when the IPO closed for bidding, suggesting investor confidence but also a modest reduction from peak.
The IPO, which was open from October 21 to October 23, 2024, was offered at a price band of Rs1,427-1,503 per share. Waaree Energies raised Rs4,321.44 crore through a mix of fresh equity sales (Rs3,600 crore) and an offer for sale (OFS) of 48 lakh shares from existing stakeholders. The IPO saw enthusiastic participation, being oversubscribed by 76.34 times. Qualified institutional buyers (QIBs) led the charge with a subscription rate of 208.63 times, while non-institutional investors (NIIs) and retail investors also showed strong interest, subscribing 62.49 times and 10.79 times, respectively.
Founded in 1990, Waaree Energies is India's largest manufacturer of solar PV modules, with an installed capacity of 12 GW. The company's portfolio includes multicrystalline, monocrystalline, and TopCon modules, serving both domestic and international markets. With a strategy to expand its manufacturing capabilities, Waaree is set to invest in a new 6 GW facility in Odisha, which will produce ingot wafers, solar cells, and PV modules. Part of the IPO proceeds is earmarked for financing this expansion, along with general corporate purposes
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The IPO was managed by prominent book-running lead managers, including Axis Capital, Jefferies India, IIFL Securities, and SBI Capital Markets, with Link Intime India acting as the registrar. Analysts had a positive outlook on the stock, citing Waaree Energies’ market leadership, robust product range, and plans for expansion as key strengths driving investor interest.
Disclaimer: The information presented here is for informational purposes only and should not be considered as investment advice. Please consult a financial advisor before making any investment decisions.
