Waaree Energies Limited Set for Stock Market Debut
Shares of Waaree Energies Limited are poised to make their much-anticipated debut on the stock market on Monday, October 28, 2024. Investors are eagerly awaiting the company’s performance, hoping for a positive return on their investments following the public issue. As the renewable energy sector continues to gain momentum, Waaree Energies stands out as a key player, and the excitement surrounding its IPO reflects the growing interest in sustainable investments.
Strong Subscription Numbers
The Initial Public Offering (IPO) of Waaree Energies has garnered significant attention from investors, showcasing robust demand across various categories. By the end of the bidding process on October 23, 2024, the IPO was subscribed an impressive 79.44 times overall. Notably, the retail category alone saw a subscription rate of 11.27 times, indicating strong interest from individual investors. The Qualified Institutional Buyers (QIB) category demonstrated even greater enthusiasm, with a staggering subscription rate of 215.03 times. Meanwhile, the Non-Institutional Investors (NII) category also showed healthy demand, being subscribed 65.25 times. These figures underscore the confidence investors have in Waaree Energies and its growth potential in the renewable energy market.
Grey Market Premium Indicates Strong Listing
Market analysts are optimistic about Waaree Energies’ stock listing, with many predicting a premium listing price. As of October 25, 2024, the Grey Market Premium (GMP) stood at Rs 1,370, suggesting a potential listing price of around Rs 2,873. This represents a significant increase over the issue price of Rs 1,503, translating to a potential gain of 91.15%. Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, expressed a positive outlook, stating, “We can expect a strong listing for Waaree Energies, supported by its impressive grey market premium of 103.79%. Based on this, the stock is likely to list around Rs 3,063, reflecting a gain of Rs 1,560 over the issue price.” Such projections are bolstered by strong investor interest and the company’s solid fundamentals, positioning Waaree Energies favorably in the market.
Hold or Sell?
For investors who received an allotment of shares in the IPO, Nyati recommends a balanced approach. She suggests that those with a long-term investment horizon might consider holding onto the stock, given Waaree Energies’ leadership in the renewable energy sector. The company’s focus on solar energy positions it well for future growth, making it an attractive option for investors looking beyond immediate gains.
Conversely, Nyati advises short-term investors to consider booking partial profits on the listing day, especially if the stock price experiences a significant uptick. She cautions that market conditions following the listing may influence short-term price movements, urging investors to remain vigilant and responsive to market dynamics.
Latest GMP Update
As of October 25, 2024, the latest Grey Market Premium (GMP) for Waaree Energies’ IPO was Rs 1,370. This places the estimated listing price at Rs 2,873, factoring in the cap price of Rs 1,503 plus the GMP. The anticipated price surge has generated considerable excitement among investors, reflecting strong confidence in the stock’s performance and the overall market sentiment towards renewable energy investments.
Company Overview
Founded in 1990 and headquartered in Mumbai, Waaree Energies is one of India’s leading manufacturers of solar photovoltaic (PV) modules. The company boasts an impressive installed capacity of 12 GW and specializes in producing multicrystalline PV modules, which are widely utilized in solar energy systems. This focus on solar technology positions Waaree Energies as a pivotal player in India’s expanding renewable energy landscape, aligning with the country’s commitment to sustainable development and clean energy solutions.
The IPO of Waaree Energies has been managed by a consortium of reputable financial institutions, including Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital. Link Intime India has been appointed as the registrar for the issue, overseeing the allocation and distribution of shares to investors.
Conclusion
As Waaree Energies prepares for its stock market debut, the enthusiasm surrounding its IPO reflects a broader trend towards renewable energy investments. With strong subscription numbers and a promising Grey Market Premium, investors are keenly watching how the stock will perform on its first day of trading. Whether one chooses to hold for the long term or capitalize on short-term gains, Waaree Energies presents an exciting opportunity in the burgeoning renewable energy sector.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Published On: October 25, 2024