The initial public offering (IPO) of Waaree Energies Limited has garnered significant attention as it enters its second day of bidding. As of October 22, 2024, the IPO has shown promising signs, with strong grey market premiums and robust subscription rates. This article provides an overview of the IPO’s performance, including its grey market premium (GMP), subscription status, and expert reviews to help investors make informed decisions.
Waaree Energies IPO GMP
As per market observers, the grey market premium for Waaree Energies shares is currently at ₹1,503, reflecting a ₹30 increase from Monday’s GMP of ₹1,473. This substantial premium indicates strong investor sentiment and confidence in the company’s prospects. The rise in grey market sentiment can be attributed to the positive response received from Indian primary market investors, suggesting that enthusiasm for this IPO may continue to grow.
Subscription Status
The subscription for the Waaree Energies IPO commenced on October 21, 2024, and will remain open until October 23, 2024. By 11:24 AM on Day 2 of bidding, the public issue had been subscribed 5.01 times overall. Notably, the retail portion was booked 4.49 times, while the non-institutional investors (NII) segment was filled 13 times. However, the Qualified Institutional Buyers (QIB) segment saw a modest subscription rate of only 0.09 times.
Waaree Energies IPO Review
Analysts have assigned a ‘subscribe’ rating to the Waaree Energies IPO based on its strong financial performance and growth potential. Sagar Shetty from StoxBox highlighted that the company’s operational revenue grew at an impressive compound annual growth rate (CAGR) of 99.8% from FY22 to FY24. The profit after tax surged from ₹796.50 million in FY22 to ₹12,743.77 million in FY24, while return on equity (ROE) improved significantly from 17.69% to 30.26%.Furthermore, Waaree Energies is well-positioned within the solar energy sector due to its competitive pricing and substantial order book, ensuring revenue stability and sustainable growth. The company’s valuation at a price-to-earnings (P/E) ratio of 31.4x on the upper price band is lower than that of its peers, making it an attractive investment opportunity.Motilal Oswal also recommends subscribing to the public issue, noting that Waaree Energies is a market leader in solar modules with favorable conditions such as growing global demand for solar energy and strong governmental support for renewable sectors.
Key Details of Waaree Energies IPO
The price band for the Waaree Energies IPO has been set between ₹1,427 and ₹1,503 per equity share, aiming to raise approximately ₹4,321.44 crore, with ₹3,600 crore coming from fresh share issuance. The allotment date is expected on October 24, with shares likely to list on exchanges by October 28.
Should You Apply?
Given the strong financial metrics and positive market sentiment surrounding Waaree Energies’ IPO, analysts recommend applying for this offering for medium to long-term investment horizons. The company’s robust growth trajectory and position as a leader in the solar energy sector make it a compelling choice for investors looking to tap into renewable energy opportunities.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies and do not reflect the views of Mint or its affiliates. Investors are strongly advised to consult with certified experts before making any investment decisions as market conditions can change rapidly and individual circumstances may vary.
In conclusion, as Waaree Energies continues its IPO journey amid favorable market conditions and strong investor interest, it presents an attractive option for those looking to invest in the growing renewable energy sector in India.
