Waaree Energies IPO: Public Issue Subscribed 38x On Final Day, GMP Hints Listing At 100% Premium; Check

The initial public offering (IPO) of Waaree Energies Limited, one of India's leading solar energy companies, has garnered significant attention in the primary market. As of Wednesday, October 23, 2024, by 2:36 pm, the IPO was oversubscribed by 37.45 times.

Grey Market Premium (GMP)

One of the driving forces behind the intense demand for Waaree Energies shares is the company's grey market premium (GMP). The GMP has created quite a buzz in the unregulated market, with prices oscillating between Rs 1,500 and Rs 1,510 last week, indicating potential listing gains of over 100%. This strong premium showcases investors' willingness to pay well above the IPO price to secure their shares. While the GMP recently eased to Rs 1,370 to Rs 1,375, the projected listing gains remain substantial, hovering around 90%.

On day 3 of the IPO, Waaree Energies received overwhelming interest from various investor segments. Qualified Institutional Buyers (QIBs) led the charge, subscribing to the issue 76.73 times. Non-institutional investors (NIIs) followed closely, with 54.24 times oversubscription, while retail investors subscribed 9.56 times. The employee segment also saw decent participation, with a 4.53 times subscription.

IPO Details

Waaree Energies' Rs 4,321.44 crore IPO includes a fresh issue of Rs 3,600 crore and an offer for sale (OFS) of existing shares. The price band for the IPO has been set between Rs 1,427 and Rs 1,503 per equity share. Proceeds from the fresh issue will primarily be used to establish a 6 GW (gigawatt) manufacturing facility for Ingot Wafer, Solar Cells, and Solar PV modules in Odisha. Additionally, part of the funds will be allocated for general corporate purposes. Post-IPO, Waaree Energies' market valuation is estimated to surpass Rs 43,000 crore at the upper price band.

Allotment and Listing Dates

The IPO opened for subscription on October 21 and will close by the end of trading on October 23. Successful bidders can expect share allotment on Thursday, October 24, with the shares set to debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Monday, October 28.

According to stock market observers, Waaree Energies' current GMP of Rs 1,375 represents a premium of 91.48% over the issue price of Rs 1,503, as per data from investorgain.com. Despite the slight drop from last week's peak GMP, the current premium still suggests significant listing gains for investors, with market experts anticipating a strong debut on the stock exchanges.

Waaree Energies plans to significantly expand its manufacturing capabilities with proceeds from the IPO aligned with India's broader renewable energy goals.