If the current trends sustain, Waaree Energies shares are expected to list at a 85% premium over the IPO price.
Shivani Nyati of Swastika Investmart expects a strong listing for Waaree Energies, supported by its impressive GMP. Given the company’s strong fundamentals, leadership in the solar energy sector, and the overwhelming subscription numbers, the expected listing price seems justified, Nyati said.
However, the analyst advised investors to be mindful of market conditions post-listing, which can influence short-term price movements.
The ₹4,321 crore IPO received an overwhelming response from investors by receiving bids worth ₹2.41 lakh crore.
The overall subscription stood at 76.34 times at the end of day 3, led by 208.63 times subscriptions in the institutional category and 62.48 times subscriptions in the non-institutional investors’ portion. The retail portion was subscribed 10.79 times
Waaree Energies has broken the record set by the Bajaj Housing Finance, Tata Technologies, and LIC’s public offer to become the company that has received the highest number of applications in the history of IPOs.
Analysts remain bullish on the growth story of Waaree Energies, considering it is a market leader in PV module-making with ambitious global expansion plans.
The company is expected to have a post-listing market capitalisation of ₹43,179 crore at the upper price band.
Waaree Energies proposes to use the funds raised from the IPO for key initiatives, including establishing a 6 gigawatt (GW) manufacturing facility for ingots, wafers, solar cells, and PV modules in Odisha, as well as supporting general corporate purposes.
Waaree Energies, one of the major players in the solar energy industry in India, is focused on PV module manufacturing with an aggregate installed capacity of 12 GW as of June 30, 2023.
It operates five manufacturing facilities with one factory each, located at Surat, Tumb, Nandigram and Chikhli in Gujarat, and the IndoSolar Facility, in Noida, Uttar Pradesh.
With over 44% market share in India’s solar module export market, the company has strengthened its market position.
The company’s revenue increased by 70% and profit after tax (PAT) surged by 155% between the financial year ending with March 31, 2024 and March 31, 2023.
Waaree Energies holds a robust order book of 19.9GW. In FY24, the company generated over ₹6,500 crore from export markets. Further, it has strengthened its order book by securing substantial contracts from major developers in the US.