Waaree Energies Limited, India’s largest solar module manufacturer, is set to launch its initial public offering (IPO) today, October 21, 2024. The public issue will remain open until October 23, 2024, offering investors a chance to participate in the burgeoning renewable energy sector.
IPO Overview
The price band for the Waaree Energies IPO has been fixed between ₹1,427 and ₹1,503 per equity share. The company aims to raise a total of ₹4,321.44 crore through this offering, which includes a fresh issue of ₹3,600 crore and an offer for sale (OFS) of ₹721.44 crore by existing shareholders. This IPO will consist of 2.39 crore equity shares, with one lot comprising nine shares.
Grey Market Premium (GMP)
As of today, shares of Waaree Energies are trading at a grey market premium (GMP) of ₹1,473. This high premium indicates strong investor sentiment and demand ahead of the official listing on the BSE and NSE, expected on October 28, 2024.
Financial Performance
Waaree Energies has demonstrated robust financial growth over recent years. In fiscal year 2024, the company’s revenue surged to ₹11,397.6 crore from ₹2,854.3 crore in fiscal year 2022, marking an impressive year-on-year growth rate of 68.8%. Additionally, net profit increased significantly from ₹79.7 crore in FY22 to ₹1,274.4 crore in FY24.
Expert Recommendations
Industry analysts are optimistic about Waaree Energies’ prospects. Mahesh M Ojha from Hensex Securities recommends a “subscribe” rating based on the company’s leadership in solar module manufacturing and its strong order book. Similarly, Anshul Jain from Lakshmishree Investment and Securities highlights the company’s competitive pricing and extensive customer base as key advantages that make this IPO an attractive investment opportunity.
Risks and Considerations
While the outlook appears positive, potential investors should be aware of certain risks. The company relies heavily on exports—58% of its FY24 sales came from international markets—which exposes it to currency fluctuations and geopolitical uncertainties. Moreover, changes in government policies regarding renewable energy could impact future profitability.
Conclusion: Should You Apply?
Given the strong financial performance, positive market sentiment reflected in the GMP, and expert recommendations to subscribe, Waaree Energies’ IPO presents a compelling investment opportunity for those looking to capitalize on the growing renewable energy sector in India.Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions.
