Waaree Energies IPO: Issue subscribed 8.8x on Day 2, NIIs lead

Post-IPO, the company’s market capitalization is expected to surpass Rs 43,179 crore, based on the upper price band.

Waaree Energies’ Rs 4,321-crore IPO saw strong demand on October 22, the second day of bidding, with the offer being oversubscribed 8.8 times. Investors placed bids for 18.55 crore shares, significantly exceeding the 2.1 crore shares available, data from the exchanges showed.

The company, a key player in the solar energy sector, specialises in PV module manufacturing and had an installed capacity of 12 GW as of June 30, 2023. There was notable interest in the grey market as well, where Waaree Energies’ premium surged past 100 percent before the IPO's launch on October 21.

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Non-institutional investors led the charge, subscribing 24.36 times the portion reserved for them. Retail investors followed with their segment being subscribed 6.38 times, while the employee quota saw 3.1 times demand. Qualified institutional buyers (QIBs) picked up 1.73 times reserved portion, as per NSE data.

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The IPO includes a fresh equity issue worth Rs 3,600 crore, along with 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 brings the total issue size to Rs 4,321.44 crore.

Post-IPO, the company’s market capitalisation is expected to surpass Rs 43,179 crore, based on the upper price band.

Proceeds from the fresh issue will be primarily used to establish a 6 GW facility in Odisha, focused on producing ingot wafers, solar cells, and PV modules. A portion of the funds will also be allocated for general corporate expenses.

Waaree Energies operates five manufacturing plants across India, with facilities in Surat, Tumb, Nandigram, and Chikhli in Gujarat, and IndoSolar in Noida, Uttar Pradesh.

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