The much-anticipated Waaree Energies IPO is set to launch between October 21 and October 23, with a price band ranging from ₹1,427 to ₹1,503 per share. This IPO is attracting significant attention due to the company’s strong performance and optimistic investor sentiment in the grey market. With the grey market premium (GMP) indicating a potential listing price of ₹2,833 per share, the offering has already created a buzz in the investment community.
Waaree Energies, an Indian leader in solar energy solutions, has seen remarkable growth in both revenue and profit over recent years. This growth is reflected in the company’s IPO and in the strong investor interest leading up to the launch. Here’s a comprehensive breakdown of the Waaree Energies IPO details, grey market performance, and what investors can expect as the opening date approaches.
Waaree Energies IPO: Company Overview and Financial Growth
Established in December 1990, Waaree Energies Limited is one of India’s largest solar PV module manufacturers. The company boasts a total installed capacity of 12 GW and offers a wide array of solar energy products, including Multicrystalline modules, Monocrystalline modules, and TopCon modules. These products include flexible bifacial (Mono PERC) modules available in both framed and unframed versions, as well as building-integrated photovoltaic (BIPV) modules. Waaree Energies has built a reputation for quality and innovation in the renewable energy sector, which has contributed to its consistent financial growth.
In the fiscal years ending on March 31, 2023, and March 31, 2024, Waaree Energies recorded a 70% increase in revenue and a remarkable 155% growth in profit after tax (PAT). This impressive performance has heightened expectations for the upcoming IPO, making it one of the most talked-about offerings in recent times.
The company’s listed peers, Websol Energy System Ltd and Premier Energies Ltd, are valued with a price-to-earnings (P/E) ratio of 151.13, adding further context to Waaree Energies’ market standing. With increasing demand for clean energy and solar solutions, Waaree Energies is poised to benefit from the expanding market, which has fueled its growth trajectory.
Waaree Energies IPO: Grey Market Premium and Investor Sentiment
A crucial indicator of investor enthusiasm for the Waaree Energies IPO is its grey market premium (GMP). As of today, the IPO’s GMP stands at +₹1,330, indicating that shares are trading at a premium of ₹1,330 in the grey market, according to investorgain.com. When the upper end of the IPO price band (₹1,503) is combined with the current GMP, the estimated listing price of Waaree Energies shares could be around ₹2,833 apiece. This would represent an 88.49% premium over the issue price, reflecting strong demand among investors even before the IPO officially opens.
The upward trend in the GMP over the last five trading sessions suggests that the Waaree Energies IPO could have a robust listing on the stock exchange. Experts have noted that the GMP for Waaree Energies has fluctuated between ₹0 and ₹1,545, with current levels signaling strong investor interest. The grey market is often a barometer of how a stock will perform once it lists on the exchange, and in this case, the GMP reflects investor confidence in Waaree Energies’ future growth potential.
‘Grey market premium’ (GMP) refers to the price at which shares of a forthcoming IPO trade in an unofficial market before they are listed on the stock exchange. It represents the premium investors are willing to pay over the issue price, and in the case of Waaree Energies, the GMP indicates high demand and a positive outlook for its post-listing performance.
Waaree Energies IPO: Structure and Allocation Details
The Waaree Energies IPO is structured to raise up to ₹3,600 crore through the issuance of new equity shares. Additionally, an offer for sale (OFS) of up to 4.8 million equity shares with a face value of ₹10 each will be part of the IPO. The OFS shares will be sold by promoter Waaree Sustainable Finance Private Ltd and shareholder Chandurkar Investments Pvt Ltd, according to the Red Herring Prospectus (RHP).
The IPO has allocated 50% of the shares for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. Furthermore, the employee reservation portion consists of up to 650 million equity shares, offering a broad range of opportunities for different types of investors to participate.
The book-running lead managers for the IPO include Axis Capital Limited, IIFL Securities Ltd, Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, SBI Capital Markets Limited, Intensive Fiscal Services Private Limited, and ITI Capital Ltd. The IPO registrar is Link Intime India Private Ltd, which will handle the processing of applications and share allotments.
Details on the allocation to anchor investors are expected to be revealed today, Friday, October 18. Anchor investors are institutional investors who are allotted shares ahead of the IPO’s opening, and their participation often provides insight into the offering’s strength. Strong interest from anchor investors could signal further optimism for the IPO’s success.
Waaree Energies IPO: Conclusion
The Waaree Energies IPO has generated significant attention due to the company’s robust financial growth, strong market position, and positive grey market activity. With a price band of ₹1,427 to ₹1,503 per share and a grey market premium of +₹1,330, the IPO is expected to see a healthy response from investors across different categories.
As the IPO opens on October 21 and closes on October 23, all eyes will be on Waaree Energies as it enters the stock market. Given the company’s solid financial performance and investor interest, the IPO is anticipated to be a strong contender in the renewable energy sector.
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