Waaree Energies IPO OverSubscribed

Waaree Energies IPO oversubscribed, strong grey market premium

Waaree Energies’ IPO, which opened for bidding on October 21 and concludes today, October 23, has experienced strong demand. As of Day 3, the public offering has been subscribed 11.12 times, receiving bids for 23.44 crore equity shares against the 2.10 crore shares available. The IPO’s price range is set between ₹1,427 and ₹1,503 per share, with the company aiming to raise ₹4,321.44 crore at the upper end.

The retail portion has been subscribed 7.15 times, the Non-Institutional Investors (NII) segment 33.47 times, and Qualified Institutional Buyers (QIBs) 1.78 times as of today. Waaree Energies, valued at a price-to-earnings ratio of 31.4x at the upper price band based on FY24 earnings, is considered a promising investment due to its robust financial growth and large order book, leading BP Equities to recommend a ‘Subscribe’ rating for medium to long-term investors.

Additionally, shares of Waaree Energies are seeing strong demand in the grey market, with a premium of ₹1,377 per share—about 92% above the issue price of ₹1,503. The company, with a 12 GW solar module production capacity (1.9 times greater than its nearest competitor), operates five manufacturing facilities and produces multicrystalline, monocrystalline, and TopCon PV modules, while also offering EPC contracting services. The expected listing date for Waaree Energies’ shares is October 28.

As of October 23, 2024, the Waaree Energies IPO, a book-built issue aimed at raising ₹4,321.44 crore, continues to see strong demand on its third and final day. The offering includes a fresh issue of 2.4 crore shares, totaling ₹3,600 crore, along with an offer for sale of 0.48 crore shares, amounting to ₹721.44 crore. Waaree Energies’ market capitalization is now valued at ₹42,939.36 crore.

Additionally, Jio Financial Services, controlled by Mukesh Ambani, has been in discussions with Allianz SE to establish insurance partnerships in India. These discussions, although in early stages, aim to form both general and life insurance companies. Meanwhile, Lakshya Powertech recently listed on the NSE SME platform with a 90% premium at ₹342 per share compared to its issue price of ₹180.

Waaree Energies reported a 70% rise in revenue and a 155% growth in profit after tax between FY23 and FY24. The company, founded in 1990, specializes in solar PV modules, including Monocrystalline, BIPV, and TopCon types, and has an installed capacity of 12 GW.

The IPO anchor round, held on October 18, raised ₹1,276.93 crore from investors. The company is promoted by Hitesh Chimanlal Doshi, Viren Chimanlal Doshi, Pankaj Chimanlal Doshi, and Waaree Sustainable Finance Private Limited.

The Waaree Energies IPO offers a price band between ₹1,427 and ₹1,503 per share, with a minimum lot size of 9 shares. Retail investors must invest at least ₹13,527, while Non-Institutional Investors (sNII) require a minimum investment of ₹202,905 for 135 shares, and large NIIs need ₹1,000,998 for 666 shares.

Brokerages including Anand Rathi Research, Reliance Securities, and Geojit have issued positive recommendations for the IPO. Waaree Energies’ shares are expected to list on October 28, 2024, on the BSE and NSE, with the allotment process to be finalized by October 24, and shares credited to investors’ demat accounts by October 25.

Despite ongoing IPO bidding, Waaree Energies‘ unlisted shares are maintaining a strong grey market premium, trading at ₹1,500 per share—reflecting a 99.80% premium over the upper price band of ₹1,503. As of October 22, 2024, Non-Institutional Investors (NIIs) have shown the highest interest with 13.34 times subscription, followed by retail investors at 4.57 times. The Qualified Institutional Buyers (QIBs) portion, however, was subscribed only 0.09 times, with 5,26,113 shares bid against the 58,37,757 allocated.