Bumper Listing: Waaree Energies Makes Stellar Debut On Exchanges, Lists At 66% Premium From IPO Price

The shares of Waaree Energies Limited made a sensational entry on the Indian stock exchanges on Monday, October 28, marking a stellar debut meeting expectations. The solar energy solutions provider opened at Rs 2,500 on the National Stock Exchange (NSE), a premium of 66.33% above its issue price of Rs 1,503. On the Bombay Stock Exchange (BSE), the stock soared even higher, listing at Rs 2,550, translating to a remarkable 69.66% gain over the IPO price.

The IPO Journey

Waaree Energies' IPO, which aimed to raise Rs 4,321.44 crore, was available for public subscription from October 21 to October 23, 2024. The offer price was set between Rs 1,427 and Rs 1,503 per share. The IPO saw overwhelming demand, with bids totalling 79.44 times the offered shares. Specifically, Waaree received bids for 160.91 crore shares, while only 2.02 crore shares were available.

Breaking down the subscription categories, the retail investor segment was subscribed 11.27 times. The non-institutional investors (NII) segment saw 65.25 times subscription, while the qualified institutional buyers (QIB) category topped the charts with a 215.03 times subscription rate.

Waaree Energies IPO Details and Allocation

The IPO was a mix of new share issuance and an offer for sale (OFS) from existing shareholders. Of the total Rs 4,321.44 crore, the fresh issue accounted for 2.4 crore shares worth Rs 3,600 crore, while the OFS involved 0.48 crore shares, amounting to Rs 721.44 crore. Before the IPO opened to the public, Waaree successfully raised Rs 1,276.93 crore from anchor investors on October 18.

The allocation of shares was planned strategically, with specific portions reserved for different investor segments. Up to 20% of the total offer was reserved for qualified institutional buyers, while non-institutional investors had access to 15% of the allocation. The largest slice, at 35%, was reserved for retail investors, giving individual investors ample opportunity to participate. A small portion, 1.5%, was set aside for employees, and up to 30% was designated for anchor investors.

For retail investors, the minimum application required purchasing a lot of 9 shares, equating to a minimum investment of Rs 13,527.

IPO Review

"Waaree Energies Limited is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 12 GW. Its portfolio of solar energy products consists of multi-crystalline modules, monocrystalline modules and TopCon modules. The company has a strong focus on growth and expansion. It has demonstrated remarkable financial growth. The company has a diversified base of global and Indian customers with a strong order book," said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

"Overall, Waaree Energies Limited made a strong listing of 2509, reflecting investor confidence in the company's growth potential and financial stability. Investors may consider booking part profit here, and those who want to hold it for the long term may keep a stoploss of 2000," added Nyati.

Utilization of Funds

The fresh capital raised from the IPO is earmarked for growth initiatives, particularly for expanding Waaree's production capabilities. The company has plans to establish a 6GW manufacturing facility for ingot wafers, solar cells, and solar PV modules in Odisha, India.

Additionally, part of the funds from the IPO will support general corporate expenses, ensuring Waaree maintains a strong balance sheet to support its ongoing expansion and technological advancements.

About Waaree Energies

Founded in December 1990, Waaree Energies Limited has established itself as a pioneer in India's renewable energy sector, focusing primarily on solar PV module manufacturing. With an impressive installed capacity of 12 GW, Waaree has built a reputation as the largest manufacturer of solar PV modules in the country. The company offers a comprehensive range of PV products, including multi-crystalline and monocrystalline modules, as well as TopCon modules that include flexible bifacial Mono PERC modules available in both framed and unframed formats. The company also offers building-integrated photovoltaic (BIPV) modules.

Beyond its domestic production capabilities, Waaree is taking steps to establish a significant international presence. The company is in the process of setting up a 3 GW manufacturing facility in the United States.

Financial Performance

Waaree Energies' recent financial performance highlights its rapid growth and profitability in a competitive sector. In Fiscal Year 2024, Waaree reported a remarkable 69% year-on-year increase in revenue, reaching Rs 11,398 crore. The company's profit after tax also surged, more than doubling to Rs 1,274 crore.

Key Managers and Registrar

The IPO journey was supported by an extensive team of managers and advisors. Axis Capital Limited, IIFL Securities Ltd, Jefferies India Private Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd, SBI Capital Markets Limited, Intensive Fiscal Services Private Limited, and Iti Capital Ltd served as the lead managers, while Link Intime India Private Ltd acted as the registrar for the issue.