Waaree Energies shares expected to list at healthy premium on Oct 28, say analysts

Waaree Energies shares expected to list at healthy premium on Oct 28, say analysts

Waaree Energies Ltd, a prominent player in India’s solar energy sector, is set to make its stock market debut on October 28 with analysts predicting a substantial premium on listing day, buoyed by robust demand during its IPO. The share sale closed with a notable 76.34 times subscription, highlighting strong institutional investor interest and positioning the company for a favourable listing.

The IPO, priced between Rs 1,427 and Rs 1,503 per share, garnered Rs 1,277 crore from anchor investors prior to the issue opening. Analysts are optimistic, with expectations that Waaree Energies shares could debut with a premium close to or exceeding 100 percent, driven by the company’s leading role in the solar photovoltaic (PV) module manufacturing sector.

Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, noted the intense demand and high subscription rate, suggesting a likely premium on listing. "Given the strong fundamentals and market position, the stock could see a significant jump," Solanki said, adding that Waaree’s extensive market reach and consistent growth prospects contribute to its appeal.

Adding to the optimism, Sagar Shetty, Research Analyst at StoxBox, estimated a debut premium of about 102% over the IPO’s upper price band. “Waaree’s solid footprint in solar PV manufacturing, with an aggregate installed capacity of 12 GW, coupled with its competitive edge in the sector, sets it up for a strong stock market entry,” said Shetty.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., expects Waaree Energies to list with a significant gain, citing the grey market premium (GMP) of 103.79%. “Based on the GMP, shares are anticipated to open around Rs 3,063, implying a gain of Rs 1,560 over the upper price band of Rs 1,503,” Nyati noted. The IPO’s overwhelming 79.44 times overall subscription reflects strong investor confidence in the company’s future prospects.

Prashanth Tapse, Senior Vice President and Research Analyst at Mehta Equities Ltd., echoed this view, predicting a “blockbuster market debut.” Tapse pointed to the significant demand from both institutional and retail investors, as well as Waaree’s crucial position in the expanding renewable energy sector, as factors likely to boost its share price on listing day.

Given the robust demand, strategic positioning, and financial strength, analysts suggest that investors consider holding their shares for a medium to long-term horizon. The favourable listing outlook, combined with Waaree’s strong operational base, presents a promising investment opportunity aligned with India’s growing emphasis on clean energy.

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