Waree Energies sets IPO price band at Rs 1,427-1,503, 45% discount to unlisted price

Waree IPO will open for subscription on October 21 and close on October 23, with anchor bidding starting October 18

Waree Energies Ltd has set a price band of Rs 1427-1503 a share for its initial public offering, a 45 percent discount from its unlisted price.

Currently, Waree's unlisted price was trading at Rs 2,700-2,750 a share in unlisted markets. It has risen from around Rs 800 per share in August 2023, marking a nearly 300 percent gain to reach a record high of Rs 2,750 per share in September 2024.

Analysts suggested the significant surge in the unlisted stock was due to expectations of an upcoming listing on exchanges. Interestingly it's grey market premium trading at Rs 1,280, around 85 percent higher from its price band.

To be sure, Waree Energies is not the only company to have set a price band that is far lower than the prevalent stock price in the unlisted market. Earlier, AGS Transact, UTI Asset Management Co Ltd, PB Fintech and Tata Technologies IPO price bands had been below unlisted price levels.

AGS Transact listed in January 2022 and its price band was set at Rs 185-195 a share; its unlisted shares were trading at Rs 550 apiece before its IPO. UTI AMC listed on exchanges in September 2020 and its price band was at Rs 552-554 a share; however, its unlisted market price just before the IPO was quoting around Rs1,100 a share. PB Fintech, parent of platform Paisabazaar, had set an IPO price band of Rs 940-980 a share even though shares were quoting around Rs 1,900 apiece just before the IPO. Tata Tech IPO price band at Rs 475-500 a share, about 47.4 percent discount from Rs 950 a share its unlisted market.

Waree IPO will open for subscription on October 21 and close on October 23, with anchor bidding starting October 18. The allotment will be finalized on October 24, followed by refunds and share credits to demat accounts on October 25. The company's market debut is scheduled for October 28.

The IPO consists of a fresh issue of Rs 3,600 crore and an offer for sale of up to 4.8 million shares by its existing shareholders and promoters. On the upper price band of the issue price, the total issue size will be around Rs 4321 crore and the total market cap of the firm will be at around Rs 43000 crore.

Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities, SBI Capital Markets, Intensive Fiscal Services and ITI Capital are the lead managers to the issue.