Waaree Energies IPO Oversubscribed On First Day; Rs 4,321 Cr Issue Closes On 23 Oct

The initial public offering (IPO) of Waaree Energies opened on 21 October in an attempt to raise over Rs 4,000 crore from the public market. 
 

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 oversubscribed on its first day. The IPO allured total subscription of 3.47 times totalling to Rs 10,562 crore. While, the retail category was subscribed 3.34 times pouring Rs 4,979 crore on the first day.

The IPO opened on 21 October and scheduled to close on 23 October for the public bids. Subsequently, the allotment will be finalised on 24 October followed by the listing on the National Stock Exchange and Bombay Stock Exchange on 28 October.
 

Axis Capital, Iifl Securities, Jefferies India, Nomura Financial Advisory and Securities, SBI Capital Market, Intensive Fiscal Services and Iti Capital Market are the book running lead managers, while Link Intime is the registrar to the offer. 

Expert Note
“Waaree Energies, currently trading at a GMP of 96 per cent, indicating a high demand, it is expected to list at high positive gains. The company has strengthened its market position through capacity expansion, backward integration, and international growth. Valued at a price to earnings (PE) ratio of 31.4 times, the company’s global expansion, competitive pricing, and strong order book position it for continued growth. We recommend a ‘Subscribe’ rating for medium to long-term investment,” said Sagar Shetty, Research Analyst, StoxBox.

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.