IPO Review: Waaree Energies IPO vs. Deepak Builders IPO – Which One Should You Choose?

The fourth week of October is busy with several initial public offerings (IPOs) hitting the market. Among them are Waaree Energies and Deepak Builders & Engineers India, both opening between October 21-23. Both IPOs have been fully subscribed, thanks to strong participation from retail investors and non-institutional buyers. However, experts are more positive about Waaree Energies and less enthusiastic about Deepak Builders.

Waaree Energies IPO

Waaree Energies aims to raise ₹3,600 crore through a fresh issue of equity shares. In addition, the company is offering an Offer for Sale (OFS) of 48 lakh shares worth ₹721.44 crore at the top end of the price range. The total IPO size is ₹4,321.44 crore, including shares sold by promoter Waaree Sustainable Finance Pvt Ltd and shareholder Chandurkar Investments Pvt Ltd.

The fresh issue proceeds will be used to set up a 6 GW manufacturing plant for solar components like ingots, wafers, solar cells, and solar PV modules in Odisha. Some funds will also be used for general corporate purposes.

Deepak Builders & Engineers India IPO

Deepak Builders’ IPO includes a fresh issue of 1.07 crore shares valued at ₹217.21 crore, along with an OFS of 21.1 lakh shares worth ₹42.83 crore. The company plans to use ₹30 crore from the fresh issue to repay debt. Another ₹111.96 crore will go toward working capital needs, with the remaining funds set aside for general corporate purposes.

Expert Opinions on Waaree Energies IPO

Arun Kejriwal, founder of Kejriwal Research and Investment Services, believes that Waaree Energies is well-positioned for growth. The company currently has a solar module manufacturing capacity of 13.3 gigawatts (GW) and plans to expand with a new 6 GW facility in Odisha and 1.6 GW capacity in its U.S. subsidiary.

Waaree Energies is also looking to start solar cell production with a 5.4 GW facility expected to become operational in the next 6 months, plus an additional 6 GW at the Odisha plant. The new manufacturing facilities, including ingot wafers, are expected to be completed by fiscal 2027. Kejriwal notes that the issue price is similar to the price in the grey market. He suggests applying for the IPO for potential listing gains, but holding the shares long-term is a personal decision based on future valuations.

Prashanth Tapse, Senior Vice President of Research at Mehta Equities, also favors the Waaree Energies IPO. He highlights that Waaree is India’s largest solar PV module manufacturer with an installed capacity of 12 GW, up from 4 GW in just a few years. This growth is supported by government policies like the Domestic Content Requirement (DCR) and the Performance Linked Incentive (PLI) scheme.

Tapse believes Waaree’s market position, expanding capacity, and backward integration into solar cell production make it a strong investment. With the demand for renewable energy rising in India and globally, Tapse recommends subscribing to the Waaree Energies IPO for long-term growth.