Waaree Energies IPO GMP slips but solid listing gains still likely amid 75x subscription on Day 3

Waaree Energies market valuation has been pegged at over Rs 4,3000 crore post-issue at the upper end of the price band.

Waaree Energies continued to gain significant response in the primary market for its Rs 4,321.44 crore initial public offer (IPO) on October 23. The market action comes just a week after the largest ever Indian issue by Hyundai Motor India.

Waaree Energies IPO GMP has created a buzz in the unofficial market. According to multiple platforms that track the grey market activities, the GMP for Waaree Energies IPO soared in the price range of Rs 1,500 - 1,510 in the unregulated market till last week, indicating over 100 percent listing gains. Such a high GMP reflected the high demand for the company's shares, one of the major players in the solar energy industry in India.

However, the GMP eased recently to Rs 1,370-1,375, but the listing gains are still projected to be over 90 percent at the current rate. While the slight drop reflects market adjustments, the premium suggests that investors are willing to pay a substantial amount above the IPO issue price to secure their shares.

Waaree Energies IPO opens for public subscription: Key things to know before applying

Meanwhile, Waaree Energies IPO was subscribed 74.79 times till 3.45 PM. The issue will conclude today at 5 pm. Its price band has been fixed at Rs 1,427 to Rs 1,503 per share.

Proceeds from the fresh issue will be used for setting up 6 GW (gigawatt) of the Ingot Wafer, Solar Cell and Solar PV module manufacturing facility in Odisha. Besides, a portion of the IPO proceeds will be used for general corporate purposes.

The company's market valuation has been pegged at over Rs 43,000 crore post-issue at the upper end of the price band.

The shares are likely to be allotted to successful bidders on Thursday, October 24, while the listing of the shares will take place on the bourses on Monday, October 28.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.