Waaree Energies IPO OverSubscribed 76 Times: Record-Breaking Demand (76X)

Waaree Energies IPO oversubscribed, strong listing expected

Waaree Energies IPO OverSubscribed 76 Times Waaree Energies’ IPO saw a grey market premium (GMP) of 104%, signaling potential significant gains on listing day. The company aimed to raise ₹4,321.44 crore and received bids worth ₹2.42 crore. Retail buyers oversubscribed the issue by 11.27 times, while non-institutional investors (NIIs) subscribed 65.25 times, leading to a total subscription of 79.44 times. The IPO, which ran from October 21 to October 23, is expected to list on October 28.

Waaree Energies has expanded its capacity from 4 GW in FY22 to 12 GW by June 2024 and added a 1.3 GW solar module manufacturing facility in Noida. It produces PV modules using multi-crystalline, mono-crystalline, and advanced technologies like Tunnel Oxide Passivated Contact (TopCon) to boost efficiency. The company’s backward integration strategy includes manufacturing its own solar cells, which will be used in its PV modules to improve profit margins.

The IPO received positive recommendations, with analysts like Choice Broking suggesting a “Subscribe” rating. Waaree Energies operates five manufacturing facilities across India, leveraging supportive government policies like PM-KUSUM, the PLI scheme, and customs duty exemptions, positioning the company to capitalize on the growing renewable energy market. The share allotment will be finalized on October 24, and investors can check the status on the registrar’s website.

Waaree Energies IPO OverSubscribed 76 Times Waaree Energies, a Mumbai-based company, offered its shares in a price range of ₹1,427 to ₹1,503 per share, with investors able to apply for a minimum of nine shares and multiples thereof. The company will finalize the share allotment on Thursday, October 24. Investors will receive notifications regarding the debit of funds or release of their IPO mandate by Friday, October 25. The IPO, which was open for bidding from October 21 to October 23, raised ₹4,321.44 crore, including a fresh issue of ₹3,600 crore and an offer-for-sale (OFS) of 48 lakh shares.

The IPO saw a massive overall subscription of 76.34 times, with Qualified Institutional Buyers (QIBs) subscribing 208.63 times, Non-Institutional Investors (NIIs) subscribing 62.49 times, retail investors subscribing 10.79 times, and employees subscribing 5.17 times. Waaree Energies’ shares had a grey market premium (GMP) of ₹1,550-1,570, indicating over 105% returns, positioning the company as a potential multibagger.

Incorporated in December 1990, Waaree Energies manufactures solar PV modules with a total installed capacity of 12 GW. Its product lineup includes multicrystalline, monocrystalline, and TopCon modules. Brokerages have recommended subscribing to the IPO due to the company’s strong financials, growing solar power demand, market share, and expansion plans. However, concerns remain about its dependence on China for raw materials and reliance on limited suppliers, as well as potential policy changes.

Investors can check their allotment status on the Bombay Stock Exchange (BSE) website or via the registrar Link Intime India’s online portal.

Steps to check allotment status on the BSE:
1. Visit BSE website
2. Select “Equity” under issue type
3. Choose “Waaree Energies Limited” from the dropdown list
4. Enter your application number and PAN
5. Confirm by clicking “I am not a Robot” and hit the search button

Alternatively, check the status on Link Intime India’s portal by entering your application number, Demat account number, or PAN, and completing the security captcha.

Waaree Energies IPO OverSubscribed 76 Times The initial public offering (IPO) of Waaree Energies, a solar PV module manufacturer, received over 76 times the subscription by the close of its final day on October 23, 2024, marking a record-breaking response. With 97.34 lakh applications, the IPO set a new benchmark in India’s primary market, surpassing previous records held by Bajaj Housing Finance, Tata Technologies, and LIC.

The IPO, which was open from October 21 to October 23, aimed to raise ₹4,321.44 crore through a fresh issue of ₹3,600 crore and an offer-for-sale (OFS) of 48 lakh shares. The price range was set at ₹1,427 to ₹1,503 per share, with a lot size of nine shares. Of the total shares, 50% were reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors, while employees were allocated 650 million shares.

On the final day, the IPO saw a total subscription of 76.34 times, with QIBs subscribing 208.63 times, NIIs 62.49 times, retail investors 10.79 times, and employees 5.17 times. A day earlier, it was subscribed 8.81 times, with strong interest from NIIs. On its first day, the IPO was subscribed 3.47 times.

Waaree Energies, founded in December 1990, operates with an installed capacity of 12 GW across five manufacturing facilities in India. Its product line includes multicrystalline, monocrystalline, TopCon, and bifacial PV modules.

The grey market premium (GMP) for Waaree Energies surged to ₹1,560, with shares trading at ₹3,063 in the unofficial market, reflecting a 103.79% premium over the issue price. The company’s post-issue market valuation is estimated to exceed ₹4,300 crore at the upper end of the price band.

Proceeds from the IPO will be used to set up a 6 GW manufacturing facility for ingots, wafers, solar cells, and PV modules in Odisha, as well as for general corporate purposes. The share allotment will be finalized on October 24, with refunds initiated on October 25 and shares credited to Demat accounts on the same day. The company is set to list on the BSE and NSE on October 28.