Waaree Energies Shares Surge 66% on Strong NSE Debut

Waaree Energies made a remarkable entrance into the stock market on October 28, listing at ₹2,500 on the National Stock Exchange (NSE), representing a 66.3% increase over its initial public offering (IPO) price of ₹1,503. On the Bombay Stock Exchange (BSE), the stock debuted even higher at ₹2,550, marking a 69.66% premium.

IPO Details

The IPO, valued at ₹4,321.44 crore, was open for subscription from October 21 to October 23. It attracted significant interest, closing with a staggering 79.44 times subscription, with bids for 160.91 crore shares against the 2.02 crore shares available. The retail segment saw a subscription rate of 11.27 times, while non-institutional investors (NIIs) and qualified institutional buyers (QIBs) achieved rates of 65.25 times and 215.03 times, respectively.

Offer Breakdown

The IPO consisted of a fresh issue of 2.4 crore shares worth ₹3,600 crore and an offer for sale of 0.48 crore shares totaling ₹721.44 crore. On October 18, the company raised ₹1,276.93 crore from anchor investors. Retail investors were required to invest a minimum of ₹13,527 for a lot of nine shares.

Future Plans and Use of Proceeds

Proceeds from the fresh issue will fund the establishment of a 6GW manufacturing facility for ingots, wafers, solar cells, and PV modules in Odisha, India. A portion of the funds will also be allocated for general corporate purposes.

Expert Insights

Motilal Oswal recommended a 'subscribe' rating for Waaree Energies, noting its competitive pricing at 26.9 times its Q1FY25 price-to-earnings ratio. The firm highlighted Waaree’s leadership in the solar module sector and anticipated strong global demand. Research Analyst Sagar Shetty also endorsed the IPO, pointing to impressive financial growth, including a revenue CAGR of 99.8% from FY22 to FY24.

About Waaree Energies

Founded in December 1990, Waaree Energies is India’s largest solar PV module manufacturer, boasting an installed capacity of 12 GW as of June 2024. The company offers a diverse range of solar products, including multicrystalline and monocrystalline modules, and is expanding its global presence with a new 3 GW facility in the United States.

For Fiscal 2024, Waaree reported a significant revenue increase of 69% year-on-year to ₹11,398 crore, with profit after tax more than doubling to ₹1,274 crore.

Conclusion

With a strong market debut and promising growth prospects, Waaree Energies is poised to play a pivotal role in the solar energy landscape, attracting both retail and institutional investor interest.