Waaree Energies IPO has garnered significant attention, with investors closely tracking its progress during the subscription period. With the growing focus on renewable energy, Waaree Energies, a prominent player in the solar PV module market, is aiming to raise ₹4,321.44 crore through its initial public offering (IPO), a portion of which will be raised through fresh shares worth ₹3,600 crore. But should you apply for this IPO?
Let’s break down the critical details, including the Grey Market Premium (GMP), subscription status, and expert reviews.
GMP on Day 3: Waaree Energies Surges in Grey Market
Investors keen on IPO gains are eyeing the Grey Market Premium (GMP), which reflects how much the shares are trading above the issue price. On the third day of Waaree Energies’ IPO, its GMP stands at ₹1,375, a solid 91.48% premium over the upper price band of ₹1,503.
This indicates strong investor confidence and points to a potential blockbuster listing, particularly in a market that favors renewable energy stocks. If this trend continues, Waaree Energies may deliver substantial listing gains for investors.
Waaree Energies IPO Subscription Status
The IPO has seen enthusiastic participation across different investor categories:
| Investor Category | Subscription Rate |
|---|---|
| Retail Investors | 6.39x |
| Non-Institutional Investors (NII) | 24.38x |
| Qualified Institutional Buyers | 1.73x |
| Employees | 3.11x |
As of the second day, the IPO was oversubscribed by 8.81 times, with retail investors and non-institutional investors leading the charge. The overwhelming response from NIIs reflects the confidence in the company’s growth prospects and the solar energy sector’s potential.
MUST READ: Godavari Biorefineries IPO Day 1: GMP, Subscription Status, and Expert Review
Financial Review and Expert Opinions
Waaree Energies has shown remarkable financial performance, growing its revenue at an impressive 99.8% CAGR from FY22 to FY24. The company’s profit after tax surged from ₹796.5 million in FY22 to ₹12,743.77 million in FY24, while return on equity (ROE) improved from 17.69% to 30.26%.
Market experts are bullish on the company’s future, citing its competitive pricing, robust global expansion, and a strong order book. Leading analysts from Motilal Oswal and Sagar Shetty from StoxBox have given the IPO a ‘subscribe’ rating, recommending it for medium- to long-term investment.
| Metrics | FY22 | FY24 |
|---|---|---|
| Profit After Tax | ₹796.5 million | ₹12,743.77 million |
| Return on Equity (ROE) | 17.69% | 30.26% |
Should You Apply for Waaree Energies IPO?
Given the strong financials, robust demand for solar energy, and favorable market conditions, Waaree Energies is well-positioned for long-term growth. Investors seeking exposure to the renewable energy sector may find this IPO an attractive opportunity, especially with the China Plus One Policy boosting local manufacturing.
However, it’s essential to consider your investment horizon. While short-term listing gains look promising due to the high GMP, those with a long-term outlook could benefit from the company’s sustained growth in the solar energy space.
Key Dates:
| Event | Date |
|---|---|
| IPO Subscription Ends | 23rd October 2024 |
| IPO Allotment | 24th October 2024 |
| Listing Date | 28th October 2024 |
Disclaimer
This article is for informational purposes only. Please conduct thorough research or consult a financial advisor before making any investment decisions.
