Waaree Energies IPO subscribed over 3 times on strong response from NII, retail investors. GMP surges to 101%

The initial public offering (IPO) of Waaree Energies, which opened for subscription today, was subscribed 3.29 times on the opening day led by a strong response by non-institutional investors (NIIs) along with a solid show by the retail investors. The issue received over 6.9 crore consolidated share bids versus 2,10,79,384 shares available for subscription.

The NII quota was booked 7.98 times while the retail individual investors' portion was subscribed 3.16 times. Meanwhile, the quota for qualified institutional buyers (QIBs) was subscribed 8%.

The issue, which includes a fresh equity sale worth Rs 3,600 crore and an offer for sale (OFS) of 48 lakh shares, will close on October 23.


Ahead of the issue opening, the company raised Rs 1,277 crore from 92 anchor investors.

Waaree Energies IPO price band

The company has priced the IPO in the range of Rs 1,427-1,503 per share, where investors can bid for 9 shares in one lot.

Waaree Energies GMP

Shares of Waaree Energies were commanding a grey market premium (GMP) of Rs 1,515 per share which is a 101% premium over the upper price band.

Also Read: Hyundai IPO listing tomorrow, GMP surges to 5% over issue price

Waaree Energies IPO review

Analysts advised investors to subscribe to the issue as the company is a market leader in PV module making with ambitious global expansion plans.

"With its ambitious expansion plans, both in India and the US, along with the goal of achieving full integration across its operations, Waaree Energies is well-positioned for sustained growth. We recommend subscribing this issue for listing & long-term gains," said Canara Bank Securities.

Other details

The company proposes to use the funds raised from the IPO for key initiatives, including establishing a 6 gigawatt (GW) manufacturing facility for ingots, wafers, solar cells, and PV modules in Odisha, as well as supporting general corporate purposes.

Waaree Energies is the largest manufacturer of solar PV modules in India with the largest aggregate installed capacity of 12

GW, as of June 2024. For Fiscal 2024, the company had the second best operating income among all the domestic solar PV module manufacturers in India.

The company aims to deliver high-quality, cost-effective, and sustainable energy solutions globally, contributing to the reduction of carbon footprints. It is also expanding its footprint by establishing a 3 GW manufacturing facility in the United States, further diversifying its operational capabilities.

The Indian commercial and industrial solar sector added approximately 10GW over Fiscal 2019 and 2023, with total installed capacity as of December 2023 at approximately 25 GW.

The commercial and industrial segment accounts for 70-80% of the country’s rooftop solar installations and is making headway in the utility-scale solar space as well through open access and group captive routes.

For FY24, the company's revenue from operations jumped 69% year-on-year to Rs 11,398 crore, while profit after tax more than doubled to Rs 1,274 crore.

Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India), SBI Capital Markets, Intensive Fiscal Services and ITI Capital are the book running lead managers to the issue.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)