One of the top solar energy firms in India, Waaree Energies, is spearheading a major upsurge in the renewable energy market. On October 21, 2024, the firm launched its much awaited Rs 4,321-crore initial public offering (IPO), to a resounding reception on the first day of bidding. 3.32 times as many people subscribed to the IPO, which gave the market an optimistic vibe. Waaree Energies has established itself as a significant participant in the solar power sector as a result of the increased emphasis on green energy. Let’s examine what made this IPO one of the most talked-about stock market launches recently.
Credits: Money Control
Strong Subscription on Day One
Waaree Energies’ IPO saw bids for 6.98 crore shares on its first day, compared to the 2.1 crore shares available. This enthusiastic response signals strong investor confidence in the company’s future. Non-institutional investors (NIIs) led the charge, subscribing to their portion 8.09 times. Retail investors were not far behind, with their quota booked 3.17 times. Meanwhile, the employee segment saw a subscription of 1.57 times, and Qualified Institutional Buyers (QIBs) picked up 8 percent of their reserved portion.
This robust participation on day one indicates significant trust in Waaree Energies’ business model and growth potential. The company’s leadership in the solar energy market and its expansion plans have clearly struck a chord with investors looking to tap into the future of clean energy.
IPO Structure and Purpose: Funding Growth and Expansion
Waaree Energies’ IPO consists of two components: a fresh issue of Rs 3,600 crore and an offer-for-sale (OFS) of 48 lakh shares worth Rs 721.44 crore, mostly from promoters and existing shareholders. At the upper end of the price band, the company’s post-issue market valuation is estimated to be over Rs 43,179 crore.
The funds raised from the fresh issue will be instrumental in the company’s expansion plans. Waaree plans to establish a new 6 GW manufacturing facility in Odisha. This state-of-the-art plant will focus on producing ingot wafers, solar cells, and solar PV modules, further strengthening Waaree’s position in the global solar manufacturing arena. In addition to this, a portion of the funds will be earmarked for general corporate purposes.
With India aiming to achieve ambitious renewable energy goals, including 280 GW of installed solar capacity by 2030, Waaree Energies is well-positioned to contribute significantly to this transition.
Credits: IPO
Waaree’s Leadership in Solar Energy
One of India’s leading producers of solar PV modules is Waaree Energies. The company will have an amazing 12 GW of installed capacity as of June 30, 2023. It runs five manufacturing plants in India: the IndoSolar facility in Noida, Uttar Pradesh, and the Gujarati cities of Surat, Tumb, Nandigram, and Chikhli.
Waaree has over thirty years of experience in the energy industry and has always been a pioneer. It has become a powerful force in the market thanks to its dedication to creating high-efficiency solar modules and expanding into other solar value chain elements like wafers and cells.
The Grey Market Buzz: A 100% Premium
The enthusiasm on the grey market is one of the most talked-about features of Waaree Energies’ initial public offering. Prior to the IPO, the stock’s grey market premium (GMP) increased to more than 100%, indicating strong demand even before the formal offering. Positive investor sentiment may frequently be seen in the grey market noise, and Waaree’s GMP spike is indicative of optimism for the company’s growth potential following its initial public offering.
The strong market response to Waaree confirms the expectation that the company will have a significant impact on both the Indian renewable energy market and the global solar industry. Investors are placing bets on the business’s capacity to grow and satisfy the growing market for sustainable energy solutions.
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