Waaree Energies, one of India’s largest solar module manufacturers, is all set to launch its much-anticipated Initial Public Offering (IPO) from October 21 to October 23, 2024. With its impressive track record and expanding capacity, the IPO has generated considerable buzz in the market. Investors are eager to participate, expecting significant returns from this key player in India’s renewable energy sector.

Key highlights of the Waaree Energies IPO

The IPO is structured as a combination of a fresh issue and an Offer for Sale (OFS). The fresh issue is expected to raise ₹3,600 crore, while the OFS includes 4.8 million shares being offloaded by existing shareholders, specifically Waaree Sustainable Finance Private Ltd and Chandurkar Investments Private Ltd. The price band for the IPO has been set between ₹1,427 and ₹1,503 per share, with a minimum lot size of 9 shares. This means that retail investors need to make a minimum investment of ₹13,527 to participate.

The raised funds will primarily be used for expanding Waaree Energies’ manufacturing footprint. The company plans to establish a 6GW solar manufacturing facility in Odisha, further enhancing its capacity and bolstering its position in the solar energy sector. This move aligns with India’s ambitious goal to achieve 500 GW of renewable energy by 2030. Industry analysts believe that Waaree’s role in this transition makes it a vital player in the country’s energy landscape.

Waaree Energies: Market Leader with Strong Infrastructure

Waaree Energies, founded in 1990 and headquartered in Mumbai, operates five manufacturing facilities across India, including locations in Gujarat and Uttar Pradesh. With an installed capacity of 12 GW as of June 2023, Waaree produces a wide range of solar photovoltaic modules, including multicrystalline, monocrystalline, and bifacial TopCon modules. This diverse portfolio caters to domestic and international demand, positioning the company as a leader in the industry.

IPO Allotment Details and Listing Dates

The subscription period for the Waaree Energies IPO will close on October 23. The company is set to finalize share allotment by October 24, with refunds for unsuccessful applicants to be processed by October 25. Shares will be credited to the successful applicants’ demat accounts on the same day. The IPO is expected to list on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) by October 28, 2024.

Waaree Energies has reserved 50% of its shares for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors. Analysts highlight that this allocation strategy reflects the company’s intention to maintain a balanced and diverse investor base, ensuring widespread participation.

Investor Sentiment and Market Expectations

The grey market premium (GMP) for Waaree Energies is trading at ₹223, signaling strong interest from investors. This premium suggests a potential listing price significantly higher than the IPO’s upper limit of ₹1,503 per share, indicating confidence in Waaree’s growth trajectory. Analysts from several brokerages, including Monarch Networth Capital, have expressed optimism, stating that the company’s alignment with India’s renewable goals and its expanding capacity make it a promising opportunity for both retail and institutional investors.

Experts recommend that potential investors review the company’s price-to-earnings (P/E) ratios and compare them with industry peers like Websol Energy System Ltd and Premier Energies Ltd to make an informed decision. Analysts point out that Waaree’s recent financial performance, including a 70% rise in revenue and a 155% increase in profit after tax in the fiscal year ending March 2024, showcases its strong growth prospects.

Expert Insight: Is Waaree Energies IPO a Buy?

Industry experts underline the importance of investing in companies aligned with India’s energy transition goals. They emphasize that Waaree Energies, with its strategic manufacturing expansion and market leadership, could be an attractive bet. However, investors are advised to weigh the risks associated with market volatility and competitive dynamics in the renewable energy sector before subscribing.

Final Thoughts

Waaree Energies is making a bold move with its IPO, and the excitement in the market is palpable. The company’s long-term growth strategy, focus on capacity expansion, and alignment with national renewable energy targets position it as a key player. For those eyeing an entry into India’s booming renewable sector, this IPO offers a compelling opportunity.

However, it is crucial for potential subscribers to consult with certified financial experts to understand the risks and align their investment strategies accordingly. Waaree’s IPO window is short, and quick decision-making could be crucial for those looking to capitalize on the company’s growth.

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