Waaree Energies IPO: Share Allotment Out; GMP Hints Multibagger Listing At Over 106% Premium; Check

The much-anticipated IPO allotment status for Waaree Energies was released on Friday. Under the 'T+3' listing rule, investors were initially expecting the allotment announcement by Thursday evening following a robust three-day bidding period that concluded on Wednesday. Now, with the allotment finalized, Waaree Energies shares are set to begin trading on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Monday, October 28, 2024, at 10:00 am.

Waaree Energies IPO GMP

As the IPO listing date draws closer, grey market activity has remained bullish, despite a broader market downturn impacting sectors like banking and auto. Waaree Energies' Grey Market Premium (GMP) surged to Rs 1,591 on Friday, marking a notable rise from Rs 1,530 on Thursday.

For IPO applicants, the current GMP trend is a promising sign, suggesting a potential multibagger listing return. According to market insiders, a GMP of Rs 1,591 implies that Waaree Energies shares might debut at around Rs 3,094, a 106% increase over the IPO's upper price band of Rs 1,503. This anticipated premium signals strong investor optimism and reflects the confidence the grey market has in the company's growth potential and its position in the renewable energy sector.

While the current GMP hints at promising returns, market experts caution investors not to rely solely on grey market indicators. The grey market is an unofficial trading platform and is not directly correlated with a company's financial health.

According to financial analysts, the positive grey market sentiment surrounding Waaree Energies might indicate high demand and strong investor confidence in the company's business model and growth potential in the renewable energy sector, particularly in light of India's push towards sustainable energy solutions. However, they also emphasize that the grey market lacks regulatory oversight and can sometimes reflect speculative sentiment, advising investors to remain cautious and consider their own research and due diligence when making investment decisions.

Waaree Energies IPO

As per the BSE's official notice, Waaree Energies will be listed in the 'B' group of securities, a segment that includes mid-sized companies with strong growth potential. This listing status aligns well with Waaree Energies' profile, as it positions the company among peers with the potential for further expansion and market reach.

Investors who were allotted shares in the IPO can start trading their holdings from 10:00 AM on Monday, October 28, 2024. The announcement from BSE states, "Trading Members of the Exchange are hereby informed that effective from Monday, October 28, 2024, the equity shares of Waaree Energies Limited shall be listed and admitted to dealings on the Exchange in the list of 'B' Group of Securities."

As Waaree Energies prepares to hit the market, its upcoming listing is set against a backdrop of renewed interest in renewable energy sources. With India's climate goals pushing for increased adoption of solar and other sustainable energy solutions, companies like Waaree Energies stand to benefit from government incentives and rising demand. This favourable industry outlook may be one of the reasons behind the positive grey market movement, despite the broader market's current volatility.

For investors, however, the company's success on its listing day will likely depend on a variety of factors, including the overall sentiment on Dalal Street, the renewable energy market's performance, and broader economic cues. While the initial grey market premium suggests optimism, long-term investors are advised to look beyond the listing day gains and assess the company's potential for sustainable growth.