The Waaree Energies IPO opened for bidding on October 21, 2024, and will remain available until October 23, 2024. The company, which manufactures solar PV modules, has set its IPO price band between ₹1,427 and ₹1,503 per share. Waaree Energies aims to raise a total of ₹4,321.44 crore, with ₹3,600 crore coming from new share issuances.
Subscription Status:
The IPO has received a positive response from investors in the Indian primary market. As of now, the public issue has been subscribed 3.32 times overall. The retail portion has been booked 3.17 times, and the non-institutional investor (NII) segment has seen a substantial subscription of 8.09 times. However, the qualified institutional buyer (QIB) segment has only been filled 0.08 times.
Grey Market Premium:
According to market observers, the Grey Market Premium (GMP) for Waaree Energies shares has jumped to ₹1503, reflecting a ₹30 increase from Monday’s GMP of ₹1,473. This surge in the grey market suggests strong investor confidence, likely fueled by the positive response to the IPO.
IPO Review:
Analysts are generally recommending investors subscribe to the IPO. Sagar Shetty, a Research Analyst at StoxBox, noted the company’s impressive financial growth, with operational revenue increasing at a CAGR of 99.8% from FY22 to FY24. Net profit surged from ₹796.50 million in FY22 to ₹12,743.77 million in FY24, and return on equity improved significantly. He stated that the company’s global expansion and robust order book support its strong market position.
Motilal Oswal also recommends subscribing to the IPO, citing a reasonable valuation at 26.9 times Q1FY25 P/E (on a diluted basis). They emphasize Waaree Energies’ leadership in the solar module market and the positive outlook for renewable energy.
Several other brokerages, including Aditya Birla Securities, Canara Bank Securities, and Geojit Securities, have echoed this positive sentiment and assigned a ‘subscribe’ rating.
Important Dates:
- IPO Allotment Date: Expected on October 24, 2024
- Listing Date: Expected on October 28, 2024
With the current market enthusiasm and the rising interest in renewable energy, the Waaree Energies IPO is generating significant buzz among investors.
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