Waaree Energies Limited, recognized as India’s largest solar module manufacturer, is making headlines with its highly anticipated initial public offering (IPO) which launches today, October 21, 2024. This IPO presents a strategic opportunity for investors interested in the thriving renewable energy sector, especially as the demand for clean energy solutions continues to surge in India and beyond.
IPO Overview
The price band set for the Waaree Energies IPO ranges from ₹1,427 to ₹1,503 per equity share. The company aims to raise approximately ₹4,321.44 crore through this offering, which includes a fresh issue of ₹3,600 crore alongside an offer for sale (OFS) of ₹721.44 crore from existing shareholders. This IPO encompasses a total of 2.39 crore equity shares, with a minimum investment comprising one lot of nine shares.
Grey Market Premium (GMP)
As of today, Waaree Energies’ shares are experiencing a grey market premium (GMP) of ₹1,473. This substantial premium reflects strong investor interest and anticipation as the company prepares for its official listing on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), scheduled for October 28, 2024.
Financial Performance
Waaree Energies has exhibited impressive financial growth, solidifying its position in the renewable energy market. In fiscal year 2024, the company’s revenue soared to ₹11,397.6 crore, a remarkable increase from ₹2,854.3 crore in fiscal year 2022, representing a robust year-on-year growth rate of 68.8%. Furthermore, the net profit demonstrated substantial growth, jumping from ₹79.7 crore in FY22 to ₹1,274.4 crore in FY24, underscoring the company’s profitability trajectory.
Market Position and Competitive Edge
Waaree Energies stands out in the renewable energy landscape not only for its market share but also for its commitment to innovation and sustainability. With a well-established brand and a comprehensive product portfolio, the company is poised to benefit from the increasing push for solar energy solutions across India. Their cutting-edge technology and strong supply chain management position them favourably against competitors.
Expert Recommendations
Market analysts express a positive outlook regarding Waaree Energies’ IPO. Mahesh M Ojha from Hensex Securities advises a “subscribe” rating due to the company’s leading role in solar module production and its robust order book. Anshul Jain from Lakshmishree Investment and Securities emphasizes the company’s competitive pricing strategy and broad customer base, highlighting these factors as critical advantages that enhance the attractiveness of this IPO.
Risks and Considerations
While the array of benefits is compelling, potential investors must remain mindful of associated risks. Waaree Energies heavily relies on exports, with 58% of its FY24 sales stemming from international markets. This reliance subjects the company to risks related to currency fluctuations and geopolitical dynamics. Additionally, shifts in governmental policies on renewable energy could pose challenges to future profitability and operational stability.
Conclusion: Should You Apply?
Considering Waaree Energies’ strong financial performance, the optimistic market sentiment reflected in the GMP, and encouragement from industry experts to subscribe, this IPO offers a unique investment opportunity for those looking to engage with the expanding renewable energy sector in India. However, interested investors are advised to conduct thorough personal research or consult a financial advisor prior to making any investment decisions. Disclaimer: This article is intended for informational purposes only and does not serve as investment advice.