Waaree Energies, a leading player in the solar energy sector, made an impressive debut on the stock market today, October 28, 2024. The Waaree Energies Share listed at a significant premium, reflecting robust investor interest and enthusiasm surrounding renewable energy investments.
Listing Details
- BSE Listing Price: ₹2,550
- NSE Listing Price: ₹2,500
- Issue Price: ₹1,503
The shares debuted on the BSE at ₹2,550, marking a 69.7% premium over the issue price. On the NSE, the stock opened at ₹2,500, translating to a 66.33% premium. This strong performance indicates substantial demand for Waaree Energies shares, although it fell slightly short of earlier expectations of a 90% listing gain based on grey market premiums.
IPO Overview
The IPO of Waaree Energies was open for subscription from October 21 to October 23, successfully raising approximately ₹4,321 crore. This included a fresh share sale worth ₹3,600 crore and an offer-for-sale (OFS) of up to 48 lakh equity shares. The issue attracted an overwhelming response, garnering bids worth ₹2.41 lakh crore and receiving a staggering 97.34 lakh applications, making it the highest for any IPO in India’s primary market history.
Subscription Details
- Overall Subscription: 76 times
- Institutional Category Subscription: 208 times
- Non-Institutional Investors Subscription: 62 times
The overwhelming subscription numbers reflect strong interest from qualified institutional buyers (QIBs), indicating confidence in Waaree Energies’ growth potential.
Company Profile
Incorporated in December 1990, Waaree Energies has established itself as a leading manufacturer of solar photovoltaic (PV) modules in India. The company boasts an impressive installed capacity of 12 GW, with a diverse product portfolio that includes multicrystalline modules, monocrystalline modules, and TopCon modules.
Waaree Energies Share Price: Current Status
As of today’s listing:
- Current Share Price (BSE): ₹2,550
- Current Share Price (NSE): ₹2,500
This strong debut reflects growing investor confidence in renewable energy companies amid increasing global emphasis on sustainable energy solutions.
Analyst Recommendations for Waaree Energies
Given the positive market reception and strong fundamentals of Waaree Energies, analysts generally recommend a cautious approach:
- Recommendation: Hold or Buy on Dips
- Target Price: Investors may consider holding their positions with an eye on potential price targets around ₹2,800 to ₹3,000 in the medium term.
- Stop Loss: A stop-loss order can be placed around ₹2,400 to effectively manage downside risk.
Shivani Nyati, Head of Wealth at Swastika Investmart, stated that for those who receive an allotment, holding the stock long-term could be beneficial due to Waaree Energies’ growth potential in the renewable energy space. However, investors with a short-term view may consider booking partial profits if the stock sees a significant surge on listing day.
Future Plans and Growth Potential
Waaree Energies plans to utilize the funds raised from its IPO for several key initiatives:
- Establishing a 6 GW manufacturing facility for ingots, wafers, solar cells, and PV modules in Odisha.
- Supporting general corporate purposes.
- Expanding its footprint by establishing a 3 GW manufacturing facility in the United States.
For FY24, Waaree Energies reported a remarkable revenue increase of 69% year-on-year, reaching ₹11,398 crore. The profit after tax more than doubled to ₹1,274 crore during this period.
Conclusion: A Promising Start for Waaree Energies
Waaree Energies’ strong market debut reflects growing investor confidence in renewable energy companies amid increasing global emphasis on sustainable energy solutions. While the initial listing was slightly below expectations based on grey market activity, the substantial premium indicates strong underlying demand.Investors should keep an eye on Waaree Energies as it navigates its early days on the stock market and consider its potential for growth in the rapidly expanding solar energy sector.
Disclaimer: The information provided in this article is based on market analysis and is intended for informational purposes only. Investors are advised to consult certified experts before making any investment decisions.
