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

Waaree Energies' subscription for Rs 4,321.44 crore-IPO will close on October 23

Waaree Energies IPO hit the primary market today for its Rs 4,000-crore maiden share sale. The company is a major player in the solar energy industry focused on PV module manufacturing with an aggregate installed capacity of 12 GW as of June 30, 2023.

There is also much buzz around the Waaree Energies grey market premium that crossed the 100 percent premium ahead of its initial share sale on October 21. This comes after sluggish retail demand for the biggest-ever IPO of Hyundai Motor India, which concluded last week with a 237 percent subscription. The demand had remained subdued, impacted by market volatility and a weakened outlook for the auto sector.

Waaree Energies IPO GMP soars over 85% as company fixes price band

Waaree Energies IPO: Key things to know before issue opens today

1) Waaree Energies IPO GMP: According to various platforms that track the grey market activities, the GMP for Waaree Energies IPO has soared in the price range of Rs 1,500 - 1,510 in the unregulated market, reflecting the high demand for the company's shares. The high GMP indicates listing gains of over 100 percent. This substantial premium in the grey market indicates that investors are willing to pay a significant premium over the IPO's issue price to secure a stake in Waaree Energies.

2) Waaree Energies IPO Price Band: Solar panel maker has fixed a price band of Rs 1,427 to Rs 1,503 per share for its IPO.

3) Waaree Energies IPO Dates: IPO opened for public subscription today at 10 am and will conclude on October 23 at 5 PM.

4) Waaree Energies IPO Size: The IPO is a combination of a fresh issue of equity shares aggregating to Rs 3,600 crore and an offer-for-sale (OFS) of 48 lakh equity shares worth Rs 721.44 crore, at the upper end of the price band, by a promoter and existing shareholders. This translates into the total issue size of Rs 4,321.44 crore.

5) IPO details: Under the OFS, promoter Waaree Sustainable Finance Pvt Ltd and shareholder Chandurkar Investments Private Ltd are offloading shares.

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

7) Market Valuation: The company's market valuation has been pegged at over Rs 43, 179 crore post-issue at the upper end of the price band.

8) Reserved lots: Half of the issue size has been reserved for qualified institutional investors, 35 percent for retail investors and the remaining 15 percent for non-institutional investors. shares valued Rs 65 crore have been reserved for the employees of the solar panel maker.

9) The company operates five manufacturing facilities with one factory each, located at Surat, Tumb, Nandigram and Chikhli in Gujarat, and the IndoSolar Facility, in Noida, Uttar Pradesh.

10) Brokerage notes: KR Choksey has a 'subscribe' call on the IPO, saying "at a P/E ratio of 33.9x, Waaree offers an attractive investment opportunity in India’s booming renewable energy market. Based on these factors, we recommend a “subscribe” rating for the upcoming IPO." Monarch Networth Capital also has a 'Subscribe' rating to the issue.

The shares of the company will list on October 28 and the registrar to the issue is Link Intime India Private Limited.

The October primary market has remained abuzz with public issues garnering massive response to issues. Hyundai Motor India which concluded its sale last week was subscribed 2.37x as the institutional demand helps Hyundai cross the IPO line.

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