The much-anticipated Waaree Energies IPO is closing today, October 23, 2024, after three days of intense investor interest. The IPO, priced between ₹1,427 and ₹1,503 per share, has shown remarkable traction, with the grey market premium (GMP) standing at an impressive ₹1,375. This substantial GMP indicates a possible listing price of around ₹2,878 per share, translating to a potential gain of over 91% above the upper price band.

The public offering has seen robust participation across all investor categories. Retail investors have subscribed 6.69 times, while non-institutional investors (NII) have shown the most enthusiasm, subscribing 24.75 times. Qualified institutional buyers (QIB) have also participated, with their subscription level reaching 1.82 times. This strong response reflects the market’s confidence in Waaree Energies, India’s largest solar PV module manufacturer, and its ambitious growth strategy.

Expert Insights and Market Analysis

Market analysts note that the high GMP is a clear indicator of the positive sentiment surrounding Waaree Energies. One expert, speaking on the condition of anonymity, stated that the company’s track record and aggressive expansion plans position it for significant growth. By establishing a new 6GW manufacturing facility in Odisha with proceeds from the IPO, Waaree aims to solidify its standing in the solar energy sector, which has shown consistent growth in recent years.

Financial performance data further supports this optimistic outlook. Waaree Energies reported a 70% increase in revenue and a 155% rise in profit after tax (PAT) between FY 2023 and FY 2024. With four manufacturing facilities across Gujarat and plans for further expansion, the company’s infrastructure and market strategy are well-aligned with the Indian government’s push for renewable energy.

Subscription Breakdown and Timelines

The IPO has allocated not more than 50% of its shares for QIBs, while 15% is reserved for non-institutional investors and 35% for retail investors. The company has also set aside a portion of shares for its employees. Investors who have already subscribed can expect the allotment finalization by October 24, with refunds and demat credits processed the next day. Shares are anticipated to list on the BSE and NSE on October 28.

Waaree Energies, promoted by Hitesh Chimanlal Doshi and other key stakeholders, has been in operation since 1990. The company operates with a total installed capacity of 12 GW, producing a range of products such as multicrystalline, monocrystalline, and TopCon modules, including flexible and building-integrated photovoltaic (BIPV) modules.

What This Means for Investors

Investment experts have advised that, while the IPO appears fully priced based on FY 2025 projections, the potential for long-term returns remains high. The promising GMP and the company’s aggressive expansion plans suggest that the listing could provide substantial short-term and medium-term gains. Investors are encouraged to monitor the allotment and listing developments closely as the IPO enters its final hours.

  BSE, Gujarat, Hitesh Chimanlal Doshi, Odisha, Waaree Energies, Waaree Sustainable Finance Private Limited