The initial public offering (IPO) of Waaree Energies Limited has generated considerable investor interest, being oversubscribed over eight times on its second day. This article provides a detailed overview of the IPO status, financial structure, and insights into whether investors should consider applying.
IPO Details and Subscription Status
The IPO opened for subscription on October 21, 2024, and will close on October 23, 2024. Waaree Energies aims to raise ₹4,321.44 crore through a combination of a fresh issue and an offer-for-sale (OFS).The share allocation is structured as follows:
- Qualified Institutional Buyers (QIB): 50%
- Non-Institutional Investors (NII): 15%
- Retail Investors: 35%
As of the second day of bidding, the IPO was subscribed 8.81 times, with the NII portion showing the highest demand at 24.38 times. The QIB portion was subscribed 1.73 times, while retail investors subscribed at 6.39 times. The employee portion saw a subscription of 3.11 times, leading to approximately 18.58 million applications for the offered shares.
Latest Grey Market Premium (GMP)
Currently, the grey market premium (GMP) for Waaree Energies shares stands at around ₹1,375 per share, indicating a premium of approximately 91.48% over the upper issue price of ₹1,503 per share. This suggests that while there is high subscription interest, investor sentiment may be fluctuating.
Financial Structure of the IPO
The IPO consists of:
- A fresh issue of equity shares totaling ₹3,600 crore
- An OFS of approximately ₹721.44 crore from existing shareholders
- The price band is set between ₹1,427 and ₹1,503 per share
Use of Proceeds
Proceeds from this IPO will primarily fund the establishment of a 6GW Ingot Wafer, solar cell, and solar PV module manufacturing facility in Odisha, along with allocations for general corporate purposes.
Upcoming Dates
Key upcoming dates for investors include:
- Allotment Date: Expected on October 24, 2024
- Refunds Initiated: October 25, 2024
- Listing Date: Tentatively set for October 28, 2024
Company Background
Waaree Energies Limited is a prominent player in India’s solar energy sector, established in December 1990. It specializes in manufacturing solar PV modules and operates with a combined installed capacity of 12 GW across five manufacturing facilities located in Gujarat and Uttar Pradesh.
Should I Apply?
Analysts recommend subscribing to the Waaree Energies IPO based on its strong growth outlook and financial performance.Considerations for Investors:
- Short-term and Long-term Views: Investors may apply for both short-term gains due to high demand and long-term growth potential given India’s push towards renewable energy solutions.
- Market Sentiment: Despite fluctuations in GMP, robust subscription rates indicate strong investor confidence in Waaree Energies’ business model and market position.
Conclusion
In conclusion, potential investors should evaluate their investment strategies carefully while considering this IPO opportunity amidst favorable market conditions for renewable energy firms. The strong subscription rates reflect confidence in Waaree Energies’ future prospects as it aims to capitalize on India’s growing focus on sustainable energy.
