The much-anticipated initial public offering (IPO) of Waaree Energies Limited, a leading manufacturer of solar photovoltaic (PV) modules in India, opened for subscription on October 21, 2024, and will close on October 23, 2024. The price band for the shares is set between Rs 1,427 and Rs 1,503, with the company aiming to raise Rs 4,321.44 crore from this public issue. Of this total, Rs 3,600 crore is expected from fresh share issuance, while Rs 721.44 crore is designated for the Offer for Sale (OFS).
As of 1:15 PM on the second day of bidding, the IPO has received a positive response, being subscribed 6.11 times overall. Notably, the retail segment was booked 5.21 times, the Non-Institutional Investors (NII) portion saw a subscription rate of 16.50 times, and the Qualified Institutional Buyers (QIB) segment reached a 10% subscription level.
The grey market for Waaree Energies shares has also exhibited strong bullish sentiment, with shares currently trading at a premium of Rs 1,503—representing a 100% increase over the issue price. This premium reflects a rise of Rs 30 from the previous day’s grey market premium of Rs 1,473. Analysts attribute this surge to the robust demand from primary market investors and a generally optimistic outlook for the renewable energy sector.
IPO Objectives and Use of Funds
Waaree Energies is leveraging this IPO to fund ambitious goals, including capacity expansion, working capital requirements, and general corporate purposes. The Offer for Sale component allows existing shareholders to offload some of their stakes. Market experts highlight the company’s strong positioning in the solar PV industry, especially as the demand for renewable energy continues to grow. Waaree Energies has consistently demonstrated strong financial performance, supported by its diverse portfolio of solar products and solutions that cater to both domestic and international markets.
Grey Market Premium (GMP)
The IPO has become a hot topic among investors, driven largely by the high grey market premium. As of October 22, 2024, the GMP stands at Rs 1,503, suggesting that investors anticipate Waaree Energies shares will list at a price significantly above the upper end of the issue price band, potentially yielding substantial gains for those allotted shares. Observers believe that grey market sentiment could further improve if there’s a broader trend reversal on Dalal Street, where equity markets have recently faced volatility.
Waaree Energies is well-positioned to capitalize on the increasing demand for renewable energy. Operating in a high-growth sector, the company aligns with India’s aggressive targets for solar energy production as part of its broader sustainability initiatives. With a product range that includes high-efficiency PV modules, Waaree is strategically positioned in the competitive solar industry, catering to both utility-scale projects and rooftop solar installations.
Disclaimer:
This document is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. The information presented regarding the Waaree Energies Limited IPO is based on publicly available sources and is believed to be accurate at the time of writing. However, market conditions can change rapidly, and past performance is not indicative of future results. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. The author and publisher are not liable for any losses or damages resulting from reliance on the information provided herein.
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