The IPO of Waaree Energies Limited, a leading player in the solar PV module sector, has garnered significant attention from investors. The subscription began on October 21, 2024 and will close on October 23, 2024. The company has set the price band between ₹1,427 to ₹1,503 per equity share and aims to raise ₹4,321.44 crore, including ₹3,600 crore from fresh shares.
The IPO has seen robust investor response, with the Grey Market Premium (GMP) reflecting a bullish sentiment. Let’s break down the important details investors should consider before applying.
Waaree Energies IPO Grey Market Premium (GMP)
As of Day 2, Waaree Energies’ IPO Grey Market Premium (GMP) is ₹1,503, indicating a significant 100% premium over the issue price. This suggests strong demand and a potential listing gain. Compared to the previous day, the GMP has increased by ₹30, reflecting increased investor optimism.
GMP trends often indicate the market’s perception of a stock’s value pre-listing, though they aren’t always a guarantee of post-listing performance. In Waaree Energies’ case, the strong demand in the grey market highlights its favorable position in the renewable energy sector, further enhanced by positive market sentiments.
MUST READ: Waaree Energies IPO Day 1 Review – Price, GMP, Subscription Status & More
IPO Subscription Status and Investor Interest
As of 10:24 AM on Day 2, the IPO has been subscribed 4.02 times overall:
- Retail segment: 3.70 times subscribed
- Non-Institutional Investors (NII): 10.16 times subscribed
- Qualified Institutional Buyers (QIBs): 0.08 times subscribed
The high subscription rates from the NII segment, in particular, reflect strong confidence in the company’s growth trajectory, especially as the renewable energy market continues to gain traction globally.
Financial Performance and Growth Potential
According to Sagar Shetty, a research analyst at StoxBox, Waaree Energies has shown exceptional growth, with a revenue CAGR of 99.8% from FY22 to FY24. The company’s profit after tax surged from ₹796.50 million in FY22 to ₹12,743.77 million in FY24, demonstrating remarkable financial health. The return on equity (ROE) has also improved, climbing from 17.69% to 30.26% during the same period.
With a PE ratio of 31.4x on the upper price band, Waaree Energies’ valuation is competitive compared to its peers in the solar industry. Its solid order book, global expansion strategies, and competitive pricing make it an attractive investment for both short-term gains and long-term growth.
Expert Reviews – Should You Subscribe?
Analysts from leading brokerage firms such as Motilal Oswal and Aditya Birla Securities have given a “Subscribe” rating to the IPO. Motilal Oswal cites the company’s market leadership in the solar module segment, strong government backing for renewable energy, and growth potential driven by global solar demand.
Motilal Oswal also points to the “China Plus One” strategy, where companies are shifting focus away from China, opening opportunities for Indian firms like Waaree Energies. The IPO is “reasonably priced at 26.9x Q1FY25 P/E”, making it an attractive opportunity for medium to long-term investors.
Key Dates for Waaree Energies IPO
- Closing Date: October 23, 2024
- Allotment Date: October 24, 2024
- Listing Date: October 28, 2024
Should You Apply?
With strong financial performance, high demand in both the retail and institutional segments, and promising growth in the renewable energy sector, Waaree Energies IPO is a compelling option for investors looking to capitalize on the booming solar market. While there are always risks associated with IPO investments, the company’s fundamentals and robust market position provide a solid foundation for potential returns.
Disclaimer
IPO investments are subject to market risks. Please consult with your financial advisor before making any investment decisions.
