Waaree Energies IPO Makes A Bumper Debut; Lists With 66% Premium
Investors may consider ‘booking part profit’ here, and those who want to hold it for the long term may keep a stop loss of Rs 2,000, says expert.
The initial public offering (IPO) of Waaree Energies made a bumper debut on the exchanges in the Monday trading session. The issue listed with a premium of over 66.3 per cent at Rs 2,500 on the National Stock Exchange (NSE).
The Rs 4,321 crore IPO consisted of a fresh issue worth Rs 3,600 crore and an offer-for-sale (OFS) worth Rs 721.44 with the price band fixed at Rs 1,427 to 1,503 per equity share.
During its subscription window, Waaree Energies IPO was oversubscribed on its first day. The IPO closed with a total subscription of nearly 80 times totalling to Rs 2,41,857 crore. The retail category was subscribed 11.27 times, pouring Rs 16,787 crore till the final day. Notably, the qualified institutions category was heavily subscribed with 215 times subscription totalling to Rs 1,83,055 crore.
Axis Capital, Iifl Securities, Jefferies India, Nomura Financial Advisory and Securities, SBI Capital Market, Intensive Fiscal Services and Iti Capital Market were the book running lead managers, while Link Intime was the registrar to the offer.
Expert Note
“Waaree Energies has a strong focus on growth and expansion. It has demonstrated remarkable financial growth. The company has a diversified base of global and Indian customers with a strong order book. Overall, Waaree Energies made a strong listing reflecting investor confidence in the company's growth potential and financial stability. Investors may consider ‘booking part profit’ here, and those who want to hold it for the long term may keep a stop loss of Rs 2,000,” said Shivani Nyati, Head of Wealth, Swastika Investmart.
IPO Objectives
The net proceeds of Rs 3,600 crore from the fresh issue will be utilised towards funding capital expenditure requirements for purchase of equipment and general corporate purposes.
The firm will also invest in establishing the 6 giga watt (GW) of ingot wafer, solar cell and solar PV module manufacturing facility in Odisha.
Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
Waaree Energies registered a revenue of Rs 11,632 crore in FY 23-24 against Rs 6,860 crore in FY 22-23.
While, the profit after tax (PAT) increased to Rs 1,274 crore in FY 24 against Rs 500.28 crore in FY 23.
Overall, the revenue increased by 70 per cent, whereas PAT climbed 155 per cent between FY 23 and FY 24.
