The initial public offering (IPO) of Waaree Energies Limited is creating waves in the market as it completes its second day of bidding. With the IPO unfolding until October 23, 2024, it has already showcased remarkable performance indicators, including a strong grey market premium (GMP) and impressive subscription rates. This article will delve into the specifics of the Waaree Energies IPO, including its current GMP, subscription status, expert analyses, and overall market potential, providing investors with critical insights for informed decision-making.
Waaree Energies IPO GMP Analysis
The grey market for Waaree Energies shares is currently witnessing a notable premium of ₹1,503, marking an increase of ₹30 from the previous day’s figure of ₹1,473. This significant GMP indicates a strong bullish sentiment among investors, underscoring optimism regarding Waaree Energies’ future growth. The bullish sentiment in the grey market reinforces the positive feedback from domestic investors, pointing towards a potential escalation in demand for this offering.
Subscription Status of Waaree Energies IPO
The subscription window for the Waaree Energies IPO opened on October 21, 2024, and will close on October 23, 2024. As of 11:24 AM on the second day, the overall subscription rate soared to 5.01 times. The retail segment specifically showed robust demand, being booked 4.49 times, while non-institutional investors (NII) segment displayed remarkable interest, achieving a subscription rate of 13 times. Conversely, the Qualified Institutional Buyers (QIB) segment has seen a more modest subscription level of just 0.09 times, implying a more cautious approach amongst institutional investors.
Expert Review of Waaree Energies IPO
Leading market analysts have given a ‘subscribe’ rating for the Waaree Energies IPO, attributing this recommendation to the company’s robust financial health and significant growth potential. Sagar Shetty from StoxBox emphasized the impressive 99.8% compound annual growth rate (CAGR) in operational revenue from FY22 to FY24. The company’s profit after tax increased dramatically from ₹796.50 million in FY22 to ₹12,743.77 million in FY24, while its return on equity (ROE) improved from 17.69% to 30.26%. Moreover, Waaree Energies is strategically positioned within the solar energy sector, boasting competitive pricing and a substantial order book that ensures stable revenues and sustainable growth. The valuation, pegged at a P/E ratio of 31.4x on the upper price band, remains attractive compared to competitors. Motilal Oswal has also endorsed investing in this IPO, pointing out the favorable conditions such as increasing global demand for solar energy and strong government policies supporting renewable sectors.
Key Details of Waaree Energies IPO
The price band for the Waaree Energies IPO is set between ₹1,427 and ₹1,503 per equity share, with the goal of raising approximately ₹4,321.44 crore, of which ₹3,600 crore will derive from fresh share issuance. Investors can expect the allotment date on October 24, while shares are likely to begin trading on exchanges by October 28.
Should You Invest in Waaree Energies IPO?
Considering the strong financial indicators and favorable market perspective surrounding the Waaree Energies IPO, financial experts recommend applying for this offering, particularly for investors with a medium to long-term investment strategy. The company’s impressive growth trajectory and market leadership in the solar energy domain position it as a compelling opportunity for those looking to invest in the burgeoning renewable energy landscape in India.
Disclaimer: The opinions and recommendations discussed in this analysis are those of individual analysts and do not represent the views of associated publications or their affiliates. Investors are encouraged to consult with certified financial advisors before making investment decisions, as market conditions can fluctuate quickly and individual circumstances vary.
In summary, as Waaree Energies advances through its IPO with robust market conditions and sustained investor interest, it stands as an attractive option for those aiming to invest in the expanding renewable energy sector in India.