Waaree Energies’ Rs 4,321-crore IPO continued to see strong demand on October 23, the third and final day of bidding, with the offer being oversubscribed 76.34 times. Investors bid for 160.91 crore shares, far exceeding the 2.1 crore shares on offer, according to exchange data.
The company, a major player in the solar energy industry, focuses on PV module manufacturing and had an installed capacity of 12 GW as of June 30, 2023. Waaree Energies also garnered significant attention in the grey market, where its premium surged over 100 percent ahead of the IPO’s launch on October 21.
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Qualified institutional buyers showed the most interest, subscribing 208.63 times the portion reserved for them. Retail investors' quota has been subscribed 10.79 times, and the employees’ portion saw 5.17 times the demand. Non-institutional investors subscribed 62.48 times their reserved portion, as per NSE data.
The IPO consists of a fresh issue of equity worth Rs 3,600 crore and an offer-for-sale (OFS) of 48 lakh shares from promoters and existing shareholders, valued at Rs 721.44 crore at the upper price band. This takes the total issue size to Rs 4,321.44 crore.
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Upon listing, Waaree Energies’ market capitalisation is expected to surpass Rs 43,179 crore, based on the upper price band.
The proceeds from the fresh issue will be primarily used to set up a 6 GW facility in Odisha for manufacturing ingot wafers, solar cells, and PV modules. A portion of the funds will also be used for general corporate purposes.
Waaree Energies currently operates five manufacturing plants across India, with locations in Surat, Tumb, Nandigram, and Chikhli in Gujarat, as well as IndoSolar in Noida, Uttar Pradesh.
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