With Waaree Energies’ share allotment completed, excitement is building for its stock market debut next week. The grey market premium (GMP) suggests a promising 90% gain on listing day based on the IPO’s upper price band, though the premium has slightly dropped from earlier highs due to wider market trends.
Analysts remain optimistic about Waaree Energies, citing strong fundamentals, its leadership in India’s solar sector, and heavy subscription interest. Shivani Nyati, Head of Wealth at Swastika Investmart, notes that holding Waaree Energies stock long-term could be rewarding given its potential in renewable energy. However, for short-term investors, booking partial profits on listing day may be a smart move if the stock price sees a big jump.
The IPO, valued at ₹4,321 crore, received enthusiastic investor demand, with bids totaling ₹2.41 lakh crore. It was oversubscribed 76 times, led by 208 times in the institutional category and 62 times in the non-institutional segment. The funds will be directed toward expanding its solar manufacturing capabilities, including a new 6 GW facility in Odisha and a 3 GW facility in the United States.
As of June 2024, Waaree Energies is India’s top solar PV module manufacturer with an installed capacity of 12 GW. The company’s revenue for FY24 increased 69% year-on-year to ₹11,398 crore, while its profit after tax more than doubled to ₹1,274 crore.
The IPO’s lead managers include Axis Capital, IIFL Securities, Jefferies India, Nomura Financial, SBI Capital, Intensive Fiscal Services, and ITI Capital.
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