Shares of Waaree Energies will be listed at the exchanges on Monday. The company has fixed the IPO price at ₹1,503, and at the upper end of the price band, ₹1,427-1,503. The IPO generated a strong response from all categories of investors, especially institutional investors, who subscribed 76.4 times. 

“Our Company has filed the listing application with the NSE and BSE on October 25, 2024. Our company has received the listing and trading approval from BSE and NSE and the trading will commence on October 28, 2024,” it said in a release to the exchanges.

The QIB portion was subscribed a staggering 208.63 times. The portion reserved for retail investors was subscribed 10.79 times, while that of non-institutions was 62.49 times. The quota reserved for employees was subscribed 5.17 times.

The ₹4,321.44-crore IPO consisted of a fresh issue worth ₹3,600 crore and an offer for sale (OFS) for ₹721.44 crore.

Shivani Nyati, Head of Wealth, Swastika Investmart, said: “We can expect a strong listing for Waaree Energies, supported by its impressive grey market premium (GMP) of 103.79 per cent.. Based on this, the stock is likely to list around ₹3,063, reflecting a significant gain of ₹1,560 over the issue price of ₹1,503.”

Given the company’s strong fundamentals, leadership in the solar energy sector, and overwhelming subscription numbers, the expected listing price seems justified, she said, adding that investors should be mindful of market conditions post-listing, which can influence short-term price movements.

Waaree Energies had raised around ₹1,277 crore from 92 anchor investors, including 17 mutual funds, global pension funds, and sovereign funds. Proceeds from the fresh issue will be used to set up the 6-GW Ingot Wafer, Solar Cell, and Solar PV module manufacturing facility in Odisha. A portion will also be used for general corporate purposes.

Waaree Energies, one of the major players in the solar energy industry in India, is focused on PV module manufacturing. As of June 30, its aggregate installed capacity was 12 GW. It operates five manufacturing facilities: one each at Surat, Tumb, Nandigram, and Chikhli in Gujarat and the IndoSolar facility in Noida, Uttar Pradesh.

The issue’s book-running lead managers are Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India) Private Ltd, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital.

“For those who receive an allotment, holding the stock for the long term could be a good strategy, considering Waaree Energies’ growth potential in the renewable energy space. However, investors with a short-term view may consider booking partial profits on listing day, especially if the stock sees a significant surge.,” Nyati added.

Related Topics