Waaree Energies IPO 2024 Highlights: Waaree Energies IPO Allotment today; Check GMP, listing date, IPO subscription status and other details

Waaree Energies‘ IPO has a GMP of Rs 1375 last updated Oct 25th 2024 04:53 PM. With a price band of Rs 1503, the estimated listing price (cap price + today’s GMP) is Rs 2878. This suggests a potential gain of about 91.48 per cent from Rs 1503.

The Waaree Energies IPO offers a total of 28,752,094 shares, amounting to Rs 4,321.44 crore, with a diverse allocation across several investor categories. Anchor investors lead the pack, securing 8,495,887 shares worth Rs 1,276.93 crore. Qualified Institutional Buyers (QIBs) follow with 5,538,663 shares valued at Rs 832.46 crore. Non-Institutional Investors (NIIs) have been allocated 4,373,206 shares, amounting to Rs 657.29 crore, which includes both bids above and below Rs 10 lakh. Retail investors are significant participants as well, with 9,911,869 shares worth Rs 1,489.75 crore. Finally, employees have a smaller allocation of 432,468 shares valued at Rs 65 crore. This structured distribution underscores the strong interest from various investor segments in the offering.

The Waaree Energies saw an overall subscription of 79.44 times. The Qualified Institutional Buyers (QIB) saw 215 times subscription and Non-Institutional Buyers saw 65.25 times of subscription. The Retail Investors category was oversubscribed 11.27 times. However, shares allocated to employees saw 5.45 times oversubscription.

The Waaree Energies was incorporated in December 1990, specializing in the manufacturing of solar photovoltaic (PV) modules. It has a total installed capacity of 12 gigawatts (GW). The product range includes Multi Crystalline modules, Monocrystalline modules, TopCon modules, that features flexible bifacial modules (Mono PERC), available in both framed and unframed versions, and building-integrated photovoltaic (BIPV) modules.

Axis Capital, Jefferies India, IIFL Securities, Nomura Financial Advisory And Securities (India), SBI Capital Markets, Intensive Fiscal Services, and ITI Capital Ltd are the book-running lead managers of the Waaree Energies IPO.

The stoca of Waaree Energy was commanding a premium of 103% in the unofficial market. The premium in grey market indicates listing gain for the IPO. In the unofficial market, shares are traded illegally ahead of listing.

The IPO allotment was finalised on October 24. The registrar fixed the IPO allotment. Link Intime India worked as the registrar for the issue. The IPO price band was set at Rs 1427 to Rs 1503 per share. The minimum lot size for an application was 9 shares.

Waaree Energies is to be listed on NSE and BSE on October 28. The allotment of shares was finalised on October 24. The IPO bidding started on October 21 and ended on October 23.

“The company’s solar PV module warranties are insured by external parties, which requires it to maintain high standards for insurance approval. It received a tier-1 PV module maker rating from Bloomberg New Energy Finance between Fiscal 2018 and Fiscal 2024. Certain of its laboratories are accredited by the National Accreditation Board for Testing and Calibration Laboratories (“NABL”) which tests solar PV modules for quality checks. Further, it ensures that manufacturing facilities are regularly audited by quality audit firms. It is also included under the ALMM list identified by the GoI, which enables the company to participate in various government schemes aimed at developing the solar industry in India. WEL also manufactures semi-flexible solar panels for sale to global customers through its in-house research and development in product application,” said Anand Rathi Research in an IPO note.

“Waaree Energies Ltd. (WEL) is India‘s largest manufacturer of solar PV modules, with an aggregate installed capacity of 12 GW as of June 30, 2024 (Source: CRISIL Report). In FY24, it achieved the second highest operating income among domestic solar PV module manufacturers in India. Founded in 2007, WEL focuses on providing quality, cost-effective sustainable energy solutions to reduce carbon footprints and enhance quality of life,” said Bajaj Broking in an IPO note on Bajaj Broking.

“During FY20-24, the company’s revenue/EBITDA/PAT clocked a CAGR of 55%/103%139%, respectively, as the EBITDA margin improved from 4.8% in FY20 to 13.8% in FY24. In 1QFY25, the company’s revenue was at Rs 3400 crore (+2% YoY) while EBITDA and PAT stood at Rs 550 crore (+18% YoY) and Rs 400 crore (+19% YoY), respectively. Based on FY25F annualized financials, the IPO’s higher band implies an EV/EBITDA of 18x, and a P/E of 27x, which is at a discount to its peers, in our view. We recommend a subscription to the IPO, given the strong financials, strong industry tailwinds with long-term opportunities in the solar industry, robust order backlog and further expansion plans,” said InCred Equities in an IPO note.

“Over the years, WEL has significantly expanded its aggregated installed capacity from 4GW to 12GW and has become the largest manufacturer of solar PV modules in India. The company has also increased its presence in the export market, particularly in the USA. With successfully increasing its customer base, and its product sales, the company has grown in both its top and bottom lines. At the higher price band, WEL is seeking an EV/Sales ratio of 3.3x, which is at a discount to its peer average. With pro-active regulations, policy support and commitments towards renewable energy by the government, the domestic solar manufacturing market is likely to witness an accelerated growth trajectory in the long term,” said Choice Broking in a research note.

“At the upper price band of Rs 463, AIL is trading at a P/E ratio of 38x for FY24, which is in line with its peers. With the government’s initiatives aimed at infrastructure development, including increased budgetary allocations and the rapid pace of urbanization, AIL is strategically positioned for substantial growth. Considering its extensive experience in completing high-value and complex projects that offer better margins. Geographical diversification with operations across multiple sectors broadens their revenue base and mitigates risks. With a robust order book and a successful track record of project completion, we assign a “Subscribe” rating for medium- to long-term investment,” said Geojit Financial Services on Afcons Infrastructure IPO.

Waaree Energies (Waaree) is India’s largest manufacturer and exporter of solar modules having a capacity of 13.3GW, which grew 6x in just three years from 2GW in FY21. It has a market share of 21% in India and a healthy 44% share in exports of solar modules from India. The company is coming up with an IPO of Rs 4,320 crore comprising a fresh issue of shares for Rs 3,600 crore and an offer for sale to the extent of Rs 720 crore. The IPO proceeds will be utilized to partly finance its 6GW ingot, wafer, solar cell and solar PV module manufacturing facility in Odisha.

Afcons Infrastructure opened its IPO on October 25. It will be closed on October 29. The company aims to raise Rs 5,430 crore from the primary capital market. The issue consists of two components sale fo fresh shares as well as an offer for sale.

The company’s stocks were fetching a 103% premium in the unofficial market. It indicates a double-digit listing gain. The grey market is an irregulated market where shares are traded ahead of listing.

In an IPO note, Anand Rathi Research emphasized Waaree Energies‘ commitment to investing in the Indian market while simultaneously pursuing growth in export sales, particularly in the U.S., a key player in the global market. The report highlighted the growing prominence of solar rooftops, spurred by the Government of India‘s incentive schemes, which have significantly boosted the Indian solar module market.

As a major player, Waaree Energies has achieved a remarkable 32% compound annual growth rate (CAGR) in retail sales from FY21 to FY23. This growth is attributed to Waaree’s strategy of establishing a pan-India network of franchisees that provides extensive coverage across metropolitan areas, large cities, towns, and rural regions, ensuring timely and high-quality service for customers.

Arvind Kothari, a smallcase Manager, expressed pride in Waaree’s impressive journey, highlighting its achievement in becoming the largest solar business globally (excluding China) despite facing intense competition. He noted that this success is supported by a robust order book and significant capacity expansion. Through its upcoming IPO, Waaree aims to further integrate its operations and venture into new segments, enhancing and diversifying its position for sustained growth.

The issue saw strong overall demand, being subscribed 76.34 times, driven primarily by robust interest from qualified institutional bidders (QIBs), whose quota was oversubscribed by an impressive 208.63 times. Non-institutional investors (NIIs) also showed significant interest, with their allocation booked 62.49 times. The retail investor portion was subscribed 10.79 times, while the employee category saw 5.17 times subscription during the bidding process, reflecting broad-based participation across categories.

The grey market premium (GMP) of Waaree Energies has surged significantly after receiving an overwhelming response from investors. Recently, the company’s shares were commanding a premium of Rs 1,550-Rs 1,570 in the unofficial market, indicating potential returns of over 105% for investors. This strong demand suggests Waaree Energies could be on track to become another multibagger in the market.

Retail buyers showed strong interest in Waaree Energies’ IPO, with a minimum bid size of 9 shares, amounting to Rs 13,527 at the upper price band of Rs 1,503 per equity share. The IPO allowed retail investors to actively participate in this high-demand offering.

Waaree Energies produces PV modules using a variety of technologies, including multi-crystalline, mono-crystalline, and advanced solutions like Tunnel Oxide Passivated Contact (TopCon), which improves module efficiency and reduces energy loss.

The company expanded its manufacturing capacity from 4 GW in FY22 to 12 GW by June 2024. Additionally, Waaree Energies commissioned a new 1.3 GW solar module manufacturing facility in Noida, further enhancing its production capabilities.

Waaree Energies operates five manufacturing facilities in India, spanning a total area of 143.01 acres. These facilities are located in Surat, Tumb, Nandigram, and Chikhli in Gujarat, as well as a factory in Noida, Uttar Pradesh, operated by its subsidiary IndoSolar Limited.

Several prominent firms acted as book-running lead managers for the IPO, including Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital, ensuring a strong backing for the offering.

The company is expected to list its shares on the stock exchange (D-Street) on October 28. Investors can anticipate the market response to the stock on the listing date, following the impressive subscription rate.

Waaree Energies aimed to raise Rs 4,321.44 crore through its IPO, which received bids worth Rs 2.42 crore. The overall subscription stood at 79.44 times, with retail buyers subscribing 11.27 times and Non-Institutional Investors (NIIs) subscribing 65.25 times.

The allotment of shares will be finalized on October 24, and investors can check the allotment status through the registrar’s website. The IPO opened on October 21 and closed on October 23, with strong demand across all segments.

The IPO opened on October 21 and closed on October 23. The IPo raised Rs 4,321.44 crore from investors. There were two components in the issue: sale of fresh shares and an OFS. The allotment was finalised on October 24.

The IPO was fully subscribed on day 1 itself. The issue was subscribed to a total of 3.32 times. The QIBs booked the issue 0.08 times. The NIIs subscribed the issue 8.09 times. The retailers subscribed the issue 3.17 times. The employee’s booked the subscription 1.57 times.