Waaree Energies Limited has made a strong debut in the Indian primary market with its Initial Public Offering (IPO) that opened for subscription on October 21, 2024. The IPO has garnered significant interest, with applications surpassing the number of shares offered, indicating robust investor confidence in the renewable energy sector.
Subscription Status
On the first day of bidding, Waaree Energies’ IPO received an impressive 6,98,85,360 applications against the 2,10,79,384 shares on offer. By the end of the day, the public issue was subscribed over 3.32 times, showcasing strong demand across various investor categories. The retail portion was booked 3.17 times, while the Non-Institutional Investor (NII) segment saw an even higher subscription rate of 8.09 times.
IPO Details
The price band for Waaree Energies’ IPO is set between ₹1,427 and ₹1,503 per equity share. This book-built issue consists of both fresh shares and an offer for sale (OFS), aiming to raise a total of ₹4,321.44 crore. Of this amount, ₹3,600 crore will be generated from the issuance of new shares, while ₹721.44 crore is allocated for the OFS.The proceeds from the fresh issue are earmarked for establishing a manufacturing facility in Odisha that will produce 6 GW of ingot wafers, solar cells, and solar PV modules. Additionally, part of the funds will be directed towards general corporate purposes.
Grey Market Premium (GMP)
Ahead of its IPO launch, Waaree Energies is experiencing strong bullish sentiment in the grey market. Currently, shares are trading at a premium of approximately ₹1,500, suggesting significant investor interest. According to market analysts, this indicates an estimated listing price of around ₹3,003, which is nearly 99.8% higher than the upper limit of the IPO price band.
Conclusion
With a successful first day of bidding and strong subscription numbers across various investor categories, Waaree Energies’ IPO is poised for a promising performance as it continues to attract attention in the renewable energy sector. The company’s ambitious plans for expansion and solid market position make it an appealing option for investors looking to capitalize on the growing demand for solar energy solutions.Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult with a financial advisor before making investment decisions.
