As the Waaree Energies IPO enters its final day on October 23, 2024, excitement builds among investors looking to capitalize on this significant public offering. The company, a leading manufacturer of solar photovoltaic (PV) modules in India, has set its price band between ₹1,427 and ₹1,503 per share. With a goal to raise ₹4,321.44 crore from this book-built issue, here are the latest updates and insights.
Strong Demand for Waaree Energies IPO
The bidding for the Waaree Energies IPO commenced on October 21 and will conclude today. The initial public offering has witnessed robust demand, with the subscription status indicating that the issue has been oversubscribed more than 9 times within the first two days. Specifically, the retail category saw a subscription rate of 6.36 times, while non-institutional investors (NIIs) subscribed 24.30 times. Qualified institutional buyers (QIBs) have also shown interest, with their portion booked 1.73 times so far.
Current Grey Market Premium (GMP)
In the grey market, Waaree Energies shares are experiencing a bullish trend. The current Grey Market Premium (GMP) stands at ₹1,377 per share, reflecting a substantial premium of approximately 92% over the upper issue price of ₹1,503. This strong GMP signals positive sentiment among investors and suggests that the shares may debut favorably on listing day.
Competitive Valuation
At the upper end of its price band, Waaree Energies is valued at a Price-to-Earnings (PE) ratio of 31.4x based on FY24 earnings. This valuation is considered lower than many of its peers in the solar energy sector. Analysts from BP Equities recommend a “Subscribe” rating for medium to long-term investment due to the company’s strong financial growth and substantial order book.
Company Overview
Waaree Energies holds the distinction of being the largest manufacturer of solar PV modules in India, boasting a production capacity of 12 GW, which is 1.9 times that of its nearest competitor. The company operates five manufacturing facilities and offers a variety of products including multicrystalline, monocrystalline, and TopCon modules, along with EPC solutions as a contractor.
Key Dates
For prospective investors looking to participate in this IPO, it’s essential to note that today is the last day to apply. The expected listing date for Waaree Energies is October 28, 2024.
Should You Apply?
Investors should consider several factors before deciding whether to apply for the Waaree Energies IPO:
- Market Position: As India’s largest solar PV module manufacturer, Waaree Energies is well-positioned to benefit from the growing demand for renewable energy solutions.
- Strong Financial Performance: The company reported impressive revenue growth of 70% between FY23 and FY24 and a profit after tax (PAT) surge of 155%, indicating robust operational efficiency.
- Valuation Metrics: The PE ratio of 31.4x may appear attractive compared to peers, especially given its strong growth trajectory.
- Risk Factors: Consider potential risks such as market competition and dependency on government policies promoting renewable energy.
Given these considerations, if you believe in the long-term potential of solar energy and are comfortable with the associated risks, applying for this IPO could be worthwhile.
Experts’ Recommendations
Experts remain optimistic about Waaree Energies’ growth prospects due to several factors:
- Growing Demand for Solar Energy: With increasing global emphasis on renewable energy sources, Waaree is poised to capitalize on this trend effectively.
- Diverse Product Portfolio: The company’s wide range of solar products enhances its market appeal and provides resilience against market fluctuations.
- Experienced Leadership Team: Led by an experienced management team with deep industry knowledge, Waaree Energies is well-equipped to navigate challenges in the solar sector.
Analysts from BP Equities have issued a “Subscribe” rating for medium to long-term investment based on these positive indicators.
Conclusion
The Waaree Energies IPO represents a significant opportunity for investors looking to invest in renewable energy. With strong demand reflected in subscription rates and an attractive GMP indicating positive market sentiment, this IPO could be a valuable addition to an investor’s portfolio.
Disclaimer: This article is intended for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with financial advisors before making investment decisions related to IPOs or any other securities.
