Waaree Energies shares made a strong debut, trading at ₹2,500 on the NSE, up 66.3% from its IPO price.

Vaari Energies IPO listing: Shares of Waaree Energies rose on the stock exchanges on Monday, October 28, trading at ₹2,500 on NSE, representing a premium of 66.33 percent to the issue price. ₹1503. Meanwhile on BSE it was listed at ₹2,550, which is 69.66 percent higher than the IPO price.

Initial public offering (IPO) worth ₹From October 21 to 23, 4,321.44 crore was opened for subscription. The public offering price was in the range ₹1427–1503 per share.

After three days of trading, the Waaree Energies IPO ended in strong demand, attracting 79.44 bids. The IPO received bids for 160.91 crore shares against 2.02 crore shares offered for offer. The retail investor segment was subscribed 11.27 times while the non-institutional investor (NII) category was subscribed 65.25 times. Meanwhile, the Qualified Institutional Buyers (QIB) quota received 215.03 bids.

About IPO

Waaree Energies IPO was a combination of fresh issue of shares worth 2.4 crore shares, in aggregate ₹3600 crores and offer for sale of shares worth 0.48 crores in aggregate. ₹721.44 crores. The company collected ₹1,276.93 crores from major investors on October 18, 2024. The minimum lot size for an application is 9 shares, which requires a minimum investment from retail investors of ₹13,527.

Waaree Energies IPO has reserved up to 20% of the offer for QIBs, up to 15% for NIIs and up to 35% for retail investors. However, 1.5 percent of the supply was reserved for employees and up to 30 percent for core investors.

The net proceeds from the Fresh Issue are planned to be used to partially fund the establishment of a 6 GW ingot wafer, solar cell and solar photovoltaic module manufacturing facility in Odisha, India. In addition, part of the funds will be used for general corporate purposes.

Axis Capital Limited, IIFL Securities Ltd, Jefferies India Private Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd, SBI Capital Markets Limited, Intensiv Fiscal Services Private Limited and Iti Capital Ltd are the lead managers of Waaree Energies IPO. The Registrar of the issue is Link Intime India Private Ltd.

IPO Review

Motilal Oswal has recommended a ‘subscribe’ rating on Waaree Energies IPO, noting that the issue price is attractive at 26.9 times Q1FY25 price-earnings ratio (diluted). The firm highlighted Waaree’s leadership in the solar module market coupled with strong demand in the global solar market, strong government support for renewable energy and support for the China Plus One policy. According to them, these factors create favorable growth prospects for Waaree, allowing it to attract significant investor interest and benefit from the listing.

Similarly, Sagar Shetty, Research Analyst at StoxBox, also rated the IPO as a ‘subscribe’ due to its impressive financial trajectory, including a CAGR of 99.8 percent in revenue from FY22 to FY24 and increased profit after tax from ₹796.50 million in FY22 to ₹12,743.77 million in FY24. Shetty noted that return on equity (RoE) increased significantly from 17.69 percent to 30.26 percent, reflecting strong operational efficiency and global expansion efforts. The company’s competitive pricing, robust order book and valuation at a PE ratio of 31.4 times FY24 earnings give the company an advantage over its peers. With a strong financial foundation and significant growth potential, StoxBox offers a “subscribe” rating for medium to long-term investments.

About the company

Founded in December 1990, Waaree Energies Limited is an Indian company specializing in the manufacturing of solar photovoltaic modules with a total installed capacity of 12 GW. The solar energy product line includes various photovoltaic modules such as multicrystalline and monocrystalline modules. In addition, Waaree offers TopCon modules, which are flexible bifacial modules (Mono PERC) available in both framed and frameless formats, as well as building-integrated photovoltaic (BIPV) modules.

Waaree Energies is the largest solar PV module manufacturer in India with the highest cumulative installed capacity of 12 GW as of June 2024. To expand its global presence, Waaree is also establishing a 3 GW manufacturing facility in the US aimed at meeting the growing global demand for solar energy.

In FY2024, the company reported the second-highest operating income of any domestic solar PV module manufacturer in India. In FY24, Waaree reported a 69 percent year-on-year increase in revenue. ₹11,398 crore, with profit after tax more than doubling ₹1274 crores.