Waree Energies IPO: Public Issue Subscribed 57% On Day 1, GMP Soars High; Check Key Dates & More

The Indian primary market is buzzing with excitement as Waaree Energies Limited launches its much-anticipated initial public offering (IPO) today, October 21, 2024. Bidding for this public issue commenced at 10:00 am and will remain open until October 23, 2024. The price band for the IPO has been set between Rs 1,427 and Rs 1,503 per equity share.

Waaree Energies IPO

Waaree Energies is looking to raise Rs 4,321.44 crore through this book-building issue, which includes a combination of fresh shares and offers for sale (OFS). Out of the total amount, Rs 3,600 crore is targeted through the issuance of fresh shares, while Rs 721.44 crore is reserved for the OFS route.

Ahead of the IPO opening, market sentiment has been highly bullish. According to market observers, shares of Waaree Energies are currently trading at a significant premium of Rs 1,473 in the grey market. This premium indicates that the expected listing price could be considerably higher than the upper end of the IPO price band.

Subscription Status

As of 10:54 am on the first day of bidding, the Waaree Energies IPO had been subscribed 57% overall, with the retail portion being booked 61% and the non-institutional investor (NII) segment filled 1.25 times. This initial response is indicative of the robust interest from various segments of the market, particularly from institutional investors.

Detailed IPO Information

Price Band: Rs 1,427 to Rs 1,503 per equity share.
IPO Size: Targeting to raise Rs 4,321.44 crore through a mix of fresh shares and OFS.
Lot Size: Investors can apply in lots of nine shares each.
Allotment Date: The shares are expected to be allocated on October 24, 2024.
Registrar: Link Intime India Private Limited has been appointed as the official registrar for this IPO.
Lead Managers: The public offer is managed by a consortium of leading financial institutions, including Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital.
Listing: The IPO is anticipated to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on October 28, 2024, in compliance with the T+3 listing rule.

Apply Or Not?

Brokerage firm Sharekhan has expressed a positive outlook on Waaree Energies, citing the company's impressive growth metrics in recent years. The revenue has quadrupled between FY2022 and FY2024, reflecting the burgeoning demand for solar energy solutions. Furthermore, the company's EBITDA margin has seen significant improvement, rising from 3.9% in FY2022 to 13.8% in FY2024. The profit after tax (PAT) has surged dramatically, increasing 16 times to Rs 1,274 crore during the same period, with PAT for the first quarter of FY2025 reported at Rs 401 crore.

At the upper end of the price band, Waaree Energies is valued at 33.9 times its FY2024 earnings per share (EPS), positioning it competitively within the market. The company's experience in solar photovoltaic (PV) module manufacturing, alongside its ongoing capacity expansions and backward integration into solar cell production, places it in a prime position.