Waaree Energies Limited has made a remarkable entry into the Indian primary market with its Initial Public Offering (IPO) that opened for subscription on October 21, 2024. The IPO has attracted considerable interest, with applications far exceeding the number of shares available. This trend underscores a strong investor confidence in the renewable energy sector, particularly as the world shifts towards cleaner energy solutions. This article provides comprehensive insights into the IPO details, subscription status, and market expectations surrounding Waaree Energies.
Subscription Status
On its inaugural day of bidding, Waaree Energies’ IPO showcased an astounding response with a total of 6,98,85,360 applications submitted for 2,10,79,384 shares offered. The public issue was oversubscribed over 3.32 times, indicating robust demand across diverse investor categories. Specifically, the retail segment was booked 3.17 times, while the Non-Institutional Investor (NII) segment demonstrated an even greater enthusiasm with a subscription rate of 8.09 times.
IPO Details
The Waaree Energies IPO is priced within a range of ₹1,427 to ₹1,503 per equity share. This book-built issue consists of both newly issued shares and an offer for sale (OFS), targeting a total fundraising goal of ₹4,321.44 crore. Of this total, ₹3,600 crore is expected from the issuance of new shares, and ₹721.44 crore from the OFS. The proceeds from the fresh issue are earmarked for establishing a state-of-the-art manufacturing facility in Odisha, aimed at producing 6 GW of ingot wafers, solar cells, and solar PV modules. Furthermore, a portion of the funds will support general corporate purposes, enhancing the company’s operational capacity and market reach.
Grey Market Premium (GMP)
Leading up to the IPO launch, Waaree Energies has been witnessing strong bullish trends in the grey market, with shares trading at a premium of approximately ₹1,500. This positive sentiment hints at an anticipated listing price of around ₹3,003, representing nearly a 99.8% increase over the upper limit of the IPO price band. Such speculation reflects the growing optimism among investors regarding Waaree Energies’ performance in the market upon listing.
Conclusion
With an impressive first day of bidding and high subscription numbers across several investor segments, the Waaree Energies IPO is well-positioned for a successful market debut. The company’s ambitious plans for expansion within the renewable energy sector and its solid market presence make it an attractive investment opportunity for those looking to engage with the burgeoning solar energy market. Investors should remain informed and consider the potential of this IPO to contribute to their financial growth strategies.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult with a financial advisor before making investment decisions.