Waaree Energies is making headlines with its Initial Public Offering (IPO) set to launch on October 21, 2024. The company aims to raise approximately Rs 4,321 crore, including a fresh issue of Rs 3,600 crore. This IPO is particularly notable as Waaree Energies is the largest manufacturer of solar photovoltaic (PV) modules in India.
Main Points
Waaree Energies IPO Price Band and Allotment Date
The price band for the IPO is set between Rs 1,427 and Rs 1,503 per share. The bidding process will be open until October 23, 2024. Investors are keenly observing the grey market premium (GMP), which currently stands at an impressive 100.8%, indicating strong demand and positive sentiment towards the stock even before its official listing.
Waaree Energies IPO Subscription Status
On the first day of bidding, the IPO was oversubscribed by 3.32 times, with significant interest from non-institutional investors (NIIs) and retail investors. The NII segment was subscribed 8.09 times, while retail investors subscribed 3.17 times. This robust response reflects investor confidence in Waaree’s growth potential.
Waaree Energies IPO Grey Market Premium Trends
The grey market premium has surged dramatically in recent days, showcasing a positive outlook among investors. As of now, shares are trading at a premium of approximately Rs 1,480, which translates to nearly 98.4% above the upper price band of the IPO. Analysts suggest that this trend indicates strong listing gains for Waaree Energies once it officially enters the stock market.
Financial Performance and Growth Prospects
Waaree Energies has demonstrated remarkable financial growth over recent years. For FY24, the company’s revenue soared to Rs 11,398 crore, marking a year-on-year increase of 69%. Its profit after tax also more than doubled to Rs 1,274 crore, reflecting a robust performance amid rising demand for renewable energy solutions.
The company has ambitious plans for expansion, including setting up a new 6 GW manufacturing facility in Odisha and a 3 GW plant in the United States. These initiatives are expected to enhance production capacity and cater to the growing global demand for solar energy.
Waaree Energies IPO Analyst Recommendations
Market analysts have been largely positive about Waaree Energies’ IPO. Many recommend subscribing to the issue based on its strong market position and growth trajectory. For instance, Monarch Networth Capital has rated it as a “Subscribe,” citing the company’s leading market share and commitment to innovation and sustainability. Similarly, KR Choksey has highlighted that Waaree offers an attractive investment opportunity given its competitive pricing and growth potential in India’s booming renewable energy sector.
Risks and Challenges
Despite its promising outlook, Waaree Energies faces certain risks that investors should consider. A significant portion of its revenue—about 58%—comes from exports, particularly to the United States. Any slowdown in demand from this key market could adversely affect its business. Additionally, fluctuations in exchange rates and dependency on imported raw materials from China may impact profitability.
