Waaree Energies Limited launched its highly anticipated IPO today, October 21, 2024, creating a lot of excitement in the Indian market. The bidding, which began at 10:00 AM, will remain open until October 23, 2024. The company has set a price range of ₹1,427 to ₹1,503 per equity share and is aiming to raise ₹4,321.44 crore. This includes ₹3,600 crore from fresh equity shares and ₹721.44 crore through offers for sale (OFS).
Key Details:
- IPO Size: ₹4,321.44 crore
- Price Band: ₹1,427 to ₹1,503 per share
- Lot Size: 9 shares per lot
- IPO Dates: October 21 to October 23, 2024
- Expected Listing Date: October 28, 2024 (on BSE and NSE)
- Registrar: Link Intime India Pvt Ltd
- Lead Managers: Axis Capital, IIFL Securities, Jefferies India, Nomura, SBI Capital Markets, and more.
On the first day of bidding, the IPO was subscribed 57%, with strong demand from retail investors, whose portion was subscribed 61%, and non-institutional investors (NII), who oversubscribed by 1.25 times. The IPO is also drawing attention in the grey market, where Waaree Energies shares are trading at a premium of ₹1,473, suggesting the listing price may exceed the upper end of the price band.
Company Overview and Performance:
Waaree Energies, a leading solar photovoltaic (PV) module manufacturer, has seen impressive growth in recent years. Between FY2022 and FY2024, its revenue has quadrupled, reflecting the rising demand for solar energy solutions. During this time, its EBITDA margin also improved significantly, increasing from 3.9% to 13.8%, while profit after tax (PAT) surged 16 times to ₹1,274 crore. In Q1 FY2025 alone, the company posted a PAT of ₹401 crore.
At the upper end of the price band, Waaree Energies is valued at 33.9 times its FY2024 earnings per share (EPS), which market observers consider competitive. Sharekhan, a brokerage firm, has given a positive outlook on the company, citing its strong financials, ongoing capacity expansions, and backward integration into solar cell production as major growth drivers.
With a solid track record and favorable market conditions, Waaree Energies is well-positioned to capitalize on the growing demand for renewable energy, making its IPO an attractive opportunity for investors.
Disclaimer:
Investing in an Initial Public Offering (IPO) involves market risks, including the potential loss of principal. The information provided here is for informational purposes only and should not be considered financial or investment advice. Prospective investors are encouraged to conduct their own research or consult with a certified financial advisor before making investment decisions. Past financial performance of Waaree Energies or any other company is not indicative of future results. Market conditions, regulatory factors, and other variables may affect the performance and value of the shares post-listing. The grey market premium (GMP) mentioned is speculative and may not reflect actual listing performance. Always read the prospectus and other related documents before investing.
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