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Waaree Energies IPO Listing: Shares of Waaree Energies Ltd on Monday listed at a premium of 69.66 per cent at Rs 2,550 apiece on the BSE.
Waaree Energies IPO Listing.
Waaree Energies IPO Listing: After a blockbuster IPO subscription, shares of Waaree Energies Ltd on Monday listed at a premium of 69.66 per cent at Rs 2,550 apiece on the BSE. However, the shares later saw a selling pressure immediately after the listing and witnessed a pullback to Rs 2,304 apiece.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd, said, “Given the company’s strong fundamentals, leadership in the solar energy sector, and the overwhelming subscription numbers, the expected listing price seems justified. However, investors should be mindful of market conditions post-listing, which can influence short-term price movements.”
For those who receive an allotment, holding the stock for the long term could be a good strategy, considering Waaree Energies’ growth potential in the renewable energy space. However, investors with a short-term view may consider booking partial profits on listing day, especially if the stock sees a significant surge, she said.
The Waaree Energies IPO had received a whopping 79.44 times subscription between October 21 and October 23. It received overall bids for 1,60,91,61,741 shares as against 2,02,56,207 shares on offer, a 79.44 times total subscription. Its retail quota has been subscribed by 11.27 times so far, while its non-institutional investor (NII) category received a 65.25 times subscription. So far, the QIB quota has received a 215.03 times subscription.
The IPO was a combination of a fresh issue of equity shares aggregating to Rs 3,600 crore and an Offer For Sale (OFS) of 48 lakh equity shares worth Rs 721.44 crore, at the upper end of the price band, by a promoter and existing shareholders. This translates into the total issue size of Rs 4,321.44 crore.
The price band of the IPO was fixed at Rs 1,427-Rs 1,503. The minimum lot size for the IPO was 9 shares. So, retails investors needed to apply with a minimum investment amount of Rs 13,527. The minimum lot size investment for small NII is 15 lots (135 shares), amounting to Rs 2,02,905, and for big NII, it is 74 lots (666 shares), amounting to Rs 10,00,998.
Moreover, shares valued Rs 65 crore have been reserved for the employees of the solar panel maker.
Under the OFS, promoter Waaree Sustainable Finance Pvt Ltd and shareholder Chandurkar Investments Private Ltd are offloading shares.
Proceeds from the fresh issue will be used for setting up the 6 GW of Ingot Wafer, Solar Cell and Solar PV module manufacturing facility in Odisha. Besides, a portion will be used for general corporate purposes.
The company’s market valuation has been pegged at over Rs 4,300 crore post-issue at the upper end of the price band.
Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
Waaree Energies, one of the major players in the solar energy industry in India, is focused on PV module manufacturing with an aggregate installed capacity of 12 GW as of June 30, 2023.
It operates five manufacturing facilities with one factory each, located at Surat, Tumb, Nandigram and Chikhli in Gujarat, and the IndoSolar Facility, in Noida, Uttar Pradesh.
Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India) Private Ltd, SBI Capital Markets, Intensive Fiscal Services and ITI Capital are the book-running lead managers to the issue.
