The public issue of Waaree Energies Limited hit the Indian primary market today. On the first day of bidding, the issue was fully subscribed within just two hours of opening.
The Waaree Energies IPO, the parent company of listed entity Waaree Renewable Technologies Ltd, is a mix of a fresh issue of shares worth Rs 3,600 crore and an offer for sale (OFS) of 48 lakh shares of face value of Rs 10 each, valued at Rs 721.44 crore. The total issue size amounts to Rs 4,321.44 crore.
Half of the issue size has been booked for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Shares worth Rs 65 crore have been reserved for the employees of the solar panel maker.
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Promoter Waree Sustainable Finance Pvt will sell 43.5 lakh shares through OFS. Chandurkar Investments Pvt will offload 4.5 lakh shares or its entire 0.17 per cent stake.
The public issue will remain open for subscription till October 23, 2024. The company will finalise the allotment on October 24 and refund initiation will begin on October 25. The company will be listed on the exchanges on October 28.
Waaree Energies IPO Subscription Status
According to NSE data, the issue was subscribed 2.81 times by 3:45 pm on Monday, led by non-institutional investors (NIIs) and retail investors. The portion booked for non-institutional investors was subscribed 6.24 times, retail investors’ quota was subscribed 2.89 times and institutional investors’ quota was subscribed only 0.06 times.
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Ahead of its IPO on Friday, Waaree Energies raised approximately Rs 1,277 crore from anchor investors.
Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India) Pvt., SBI Capital Markets, Intensive Fiscal Services and ITI Capital are the book-running lead managers to the issue.
Waaree Energies IPO GMP
On Monday, Waaree Energies was commanding a grey market premium of Rs 1,480, implying a 98 per cent gain over the issue price. The estimated listing price based on the current GMP is Rs 2,983 per share.
Waaree Energies IPO Objective
Proceeds from the fresh issue will be utilized for setting up the 6 GW of Ingot Wafer, Solar Cell and Solar PV module manufacturing facility in Odisha. In addition, a portion will be used for general corporate purposes.
Waaree Energies IPO Review
Market experts advised investors to subscribe to the issue as the company is a market leader in PV module-making with ambitious global expansion plans.
According to Anand Rathi Research, with solar energy emerging as a key global theme in the transition to renewable energy, WEL is well placed to capitalize on the growing opportunity given its leading market share, strong financials, and continued focus on innovation and sustainability with capacity expansion through backward integration.
“Hence to enjoy the company’s legacy backed by government support transit in renewable energy domestically could be additional growth opportunities. Therefore, we recommend to “Subscribe” to this IPO issue,” the brokerage added.
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Waaree Energies is a major player in the solar energy industry, focused on PV module manufacturing with an aggregate installed capacity of 12 GW as of June 30, 2023.
Currently, the company operates five manufacturing facilities across India including cities like Surat, Tumb, Nandigram, and Chikhli in Gujarat, and the IndoSolar facility in Noida, Uttar Pradesh.
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