The Waaree Energies' initial public offering (IPO) is generating considerable excitement and anticipation within the investment community, largely fueled by the latest grey market premium (GMP) suggesting a remarkable increase that could lead to impressive returns for investors. The IPO, which is slated for listing on October 28, has already captured significant attention, evidenced by the staggering number of applications it has received—an astonishing 97.34 lakh—prior to the scheduled finalization of share allotment today.
This IPO, which closed on October 23, is substantial, valued at ₹4,321.44 crore. This amount includes a fresh issue of ₹3,600 crore in addition to an offer for sale (OFS) of up to 48 lakh equity shares. As of Thursday afternoon, the GMP was recorded at ₹1,550, indicating a potential premium of 103% over the IPO price of ₹1,503 per share. If this trend holds, Waaree Energies could see its shares debut at an impressive estimated price of approximately ₹3,053 on the stock exchanges, marking a significant financial opportunity for early investors and stakeholders.
Krishna Patwari, the Founder and Managing Director of Wealth Wisdom India Pvt. Ltd., commented on the current GMP, stating, “It suggests a listing price above ₹3,000 per share,” emphasizing the overwhelming demand surrounding this IPO. He noted that Waaree Energies has set a new benchmark in the market, with its record-breaking 97.34 lakh applications for the ₹4,321 crore issue, excluding anchor investors. This level of interest highlights not only the confidence investors have in the company but also the broader appeal of renewable energy investments in today’s market.
Patwari also highlighted that this IPO has exceeded the previous records established by major offerings, such as those from Bajaj Housing, Tata Technologies, and LIC, further underscoring the monumental demand for this public issue. He added that the allotment was finalized on October 24, and with the anticipated listing on October 28, continued strong interest from investors is expected as the date approaches.
The IPO has showcased substantial oversubscription, reaching an impressive 76.34 times the offered shares. Demand was particularly robust from Qualified Institutional Buyers (QIBs), who demonstrated overwhelming enthusiasm by subscribing to their allocated portion 208.63 times. Non-Institutional Investors (NIIs) also exhibited strong demand, subscribing 62.49 times, while retail investors and employees showed notable participation, with subscriptions at 10.79 times and 5.17 times, respectively. This level of oversubscription speaks volumes about the confidence the market has in Waaree Energies and its growth trajectory.
Established in 1990, Waaree Energies has emerged as one of India’s prominent manufacturers of solar photovoltaic (PV) modules, boasting a production capacity of 12 gigawatts (GW). The company's extensive product range includes multicrystalline, monocrystalline, and TopCon modules, all of which are positioned to cater to the increasing demand for renewable energy solutions across the globe.
Analysts and industry experts have expressed optimism regarding the future prospects of Waaree Energies, pointing to its solid financial performance, the growing demand for solar energy, and its established market presence as key drivers for success. However, some concerns have been raised regarding the company's dependence on Chinese raw materials, its relatively limited supplier network, and potential policy changes that could impact its operational landscape. Despite these challenges, the overall sentiment remains positive, as investors are keen to tap into the burgeoning solar market that is increasingly becoming a focal point for sustainable energy in India.
As the IPO approaches its listing date, the eyes of the investment community will undoubtedly be focused on Waaree Energies, as this offering not only represents a significant opportunity for individual and institutional investors alike but also highlights the growing momentum of renewable energy initiatives within the Indian market. The success of this IPO could serve as a harbinger for future offerings in the renewable sector, further solidifying Waaree Energies' role as a leader in the clean energy space. With the landscape of energy production evolving rapidly, the implications of this IPO extend beyond mere financial gains, embodying a pivotal shift toward sustainable practices and technological advancements in India’s energy sector.
