In this article, we’ll walk through all the essential details of the Waaree Energies IPO, including the IPO subscription status, grey market premium (GMP), and whether it’s still a good idea to apply on the final day.
Waaree Energies IPO Overview
Waaree Energies Ltd, India’s largest manufacturer of solar PV modules, launched its IPO on October 21, 2024. The bidding closes today, October 23, 2024. The company is offering 2.10 crore equity shares with a price band set between ₹1,427 and ₹1,503 per share. At the upper end of this price range, Waaree Energies aims to raise ₹4,321.44 crore.
The company has a massive production capacity of 12 GW, nearly double that of its closest competitor. With such an impressive portfolio and strong financial growth, the Waaree Energies IPO is aiming to make a significant impact in the renewable energy market.
Subscription Status on Day 3
As of today, October 23, 2024, the Waaree Energies IPO has been subscribed 11.12 times overall, reflecting the high demand from different categories of investors:
- Retail Investors: 7.15 times subscribed.
- Non-Institutional Investors (NII): A staggering 33.47 times.
- Qualified Institutional Buyers (QIB): 1.78 times.
This strong demand is a clear indicator of investor confidence in Waaree Energies’ growth potential. The company’s leadership in the solar energy sector, combined with its expansion plans, seems to have won over a diverse range of investors.
Grey Market Premium (GMP) Insights
The grey market premium (GMP) is an important indicator that reflects the market’s anticipation of an IPO’s performance before its actual listing. For the Waaree Energies IPO, the IPO GMP live as of today, October 23, 2024, is ₹1,377 per share. This signals a premium of 92% over the issue price of ₹1,503.
With such a hefty premium, it’s clear that there is strong speculative demand for Waaree Energies shares. The IPO GMP today suggests that the shares are likely to have a strong listing performance.
Waaree Energies IPO Price Band
The price band for the Waaree Energies IPO has been set at ₹1,427 to ₹1,503 per share. At the top end of this range, the company plans to raise ₹4,321.44 crore. Compared to its peers, Waaree Energies’s is valued at a PE ratio of 31.4x based on its FY24 earnings, which is lower than most companies in the solar industry.
This valuation, coupled with a solid financial track record and a strong order book, makes the Waaree Energies IPO an attractive proposition for long-term investors.
Should You Apply on the Last Day?
With today being the last day to bid for Waaree Energies shares, potential investors might wonder if it’s still worth applying. The high subscription numbers and the robust grey market premium suggest that the shares are likely to see a positive listing. However, investors should also consider the long-term potential of the company.
As India continues its push towards renewable energy, Waaree Energies’s, with its leadership position in solar module manufacturing, is well-positioned to capitalize on the growing demand. Analysts from BP Equities have given the IPO a “Subscribe” rating, particularly for investors with a medium to long-term horizon.
Company Overview: Solar Power Giant
Waaree Energies Ltd is the largest solar PV module manufacturer in India, with a total capacity of 12 GW, which is 1.9x the capacity of the second-largest player in the country. The company operates five manufacturing facilities and offers a diverse range of products, including:
- Multicrystalline Modules
- Monocrystalline Modules
- TopCon Modules
Additionally, Waaree provides EPC solutions (Engineering, Procurement, and Construction) as a contractor, making it a significant player in the renewable energy space.
Financial Strength and Future Growth
Waaree Energies has displayed remarkable financial growth over the years. With increasing awareness about renewable energy and a surge in demand for solar power, the company is well-positioned to expand even further. The funds raised through this IPO will help the company invest
in new technologies and expand its operations.
Key Dates to Remember
- Bidding Period: October 21 – October 23, 2024.
- Waaree Energies’s IPO listing date: Expected to be October 28, 2024.
Investors should keep an eye on these dates as the company’s shares are anticipated to list at a premium, given the strong response in the grey market.
Expert Opinions on Waaree Energies IPO
Market experts have largely been positive about the Waaree Energies IPO. The company’s leadership in the solar sector, combined with its financial strength, has made it a hot pick in the IPO watch space. Analysts recommend subscribing to the IPO for those looking at a medium to long-term investment.
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Conclusion
The Waaree Energies IPO has proven to be a major attraction in the Indian market,
with high subscription rates across all categories of investors. The company’s strong market position,
combined with its robust order book and growth potential, makes it an appealing option for investors.
If you’re considering applying for the Waaree Energies’s IPO today,
the positive response in the grey market and the company’s promising future could make it a solid investment. However, as with all investments, it’s crucial to assess your risk appetite and financial g
