Waaree Energies IPO Sees 12x Oversubscription: Key Takeaways from the ₹4,321.44 Crore Offering
The Waaree Energies IPO, which opened on October 21, 2024, has garnered significant investor interest and is now oversubscribed 12 times as it nears its close on October 23, 2024. With a strong grey market premium (GMP) and solid market momentum, Waaree Energies is setting the stage for a promising debut in the renewable energy sector.
IPO Overview: Waaree Energies
Waaree Energies is one of India’s leading solar energy companies, primarily focused on manufacturing solar photovoltaic (PV) modules and offering engineering, procurement, and construction (EPC) services. The company is raising ₹4,321.44 crore through its IPO, which includes:
- Fresh Issue: ₹3,600 crore
- Offer for Sale (OFS): 4.8 million shares from promoters and existing shareholders
This capital infusion will support the company’s future expansion, particularly in manufacturing solar components.
Key IPO Information
| Detail | Information |
|---|---|
| Price Band | ₹1,427 to ₹1,503 per share |
| Lot Size | 9 shares per lot |
| Total Shares Offered | 2,10,79,384 shares |
| Subscription Status | 12x oversubscribed (as of October 23) |
With a substantial number of bids—approximately 24.8 crore shares—the demand for Waaree Energies’ stock has exceeded expectations.
Breakdown of IPO Subscription
The demand for Waaree Energies’ IPO has been spread across various investor categories, with particularly strong interest from non-institutional investors:
| Investor Category | Subscription Rate |
|---|---|
| Non-Institutional Investors (NIIs) | 36 times |
| Retail Investors | 7.5 times |
| Qualified Institutional Buyers (QIBs) | 1.8 times |
The strong response reflects widespread confidence in the company’s potential, both in the renewable energy sector and beyond.
Grey Market Premium (GMP)
As of October 22, 2024, the grey market premium (GMP) for Waaree Energies stood at ₹1,500, representing an impressive 99.80% premium over the upper end of the IPO price band (₹1,503). This GMP indicates that the market is expecting strong listing gains.
Company Profile: Waaree Energies
Founded in 2007, Waaree Energies has grown to become one of the largest solar module manufacturers in India. Key facts about the company include:
- Installed Capacity: 12 GW as of June 30, 2023
- Manufacturing Plants: 5 in India
- Global Reach: Exports to over 68 countries
The funds raised from the IPO will be used to establish a new facility in Odisha, which will focus on manufacturing ingot wafers and solar cells with a capacity of 6 GW.
Future Growth Potential
Once listed, Waaree Energies is projected to achieve a market capitalization of over ₹43,179 crore (based on the upper price band). The company is well-positioned to capitalize on India’s expanding renewable energy market, particularly as the government pushes for more sustainable energy solutions. Analysts remain bullish on Waaree Energies’ growth prospects.
Key Dates for Waaree Energies IPO
| Event | Date |
|---|---|
| IPO Closing Date | October 23, 2024 |
| Allotment Date | Expected on October 24, 2024 |
| Listing Date | Likely on October 28, 2024 |
Investors should monitor these dates for updates on share allotment and listing procedures.
Conclusion: Strong Investor Confidence in Waaree Energies
With 12x oversubscription and a high GMP, Waaree Energies’ IPO demonstrates strong investor interest. The company’s strategic position in the solar energy market and future growth plans make it a promising contender in the renewable energy space. Investors are advised to stay informed on developments and key dates.
Disclaimer
This article is based on publicly available information and does not constitute financial advice. Investors should seek guidance from a certified financial expert before making any investment decisions.
