Waaree Energies IPO Lists at 66.33% Premium Above Issue Price

Waaree Energies Limited, India's largest manufacturer of solar PV modules with an aggregate installed capacity of 12 GW, made a stellar debut on the Indian stock market on Monday, 28th October 2024, with its shares listing at a significant premium on the National Stock Exchange (NSE).

Listing Details

• Listing Price: Waaree Energies shares were listed at ₹2,500 per share on the NSE, marking a strong start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a substantial premium over the IPO issue price. Waaree Energies had set its IPO price band from ₹1,427 to ₹1,503 per share, with the final issue price being fixed at the upper end of ₹1,503.
• Percentage Change: The listing price of ₹2,500 on NSE translates to a premium of 66.33% over the issue price of ₹1,503.

First-Day Trading Performance

• Opening vs. Latest Price: Following its strong opening, Waaree Energies' share price experienced some volatility. By 11:23 AM, the stock was trading at ₹2,467, down 1.32% from its previous closing price but still significantly above the issue price.
• Market Capitalisation: As of 11:23:48 AM IST, the company's market capitalisation stood at ₹70,872.77 crore.
• Trading Volume: The traded volume was 151.25 lakh shares with a traded value of ₹3,670.44 crore, indicating strong investor interest on the first day of listing.

Market Sentiment and Analysis

• Market Reaction:The market initially reacted positively to Waaree Energies' listing, though by 10:06 AM IST the stock had slipped nearly 4% on NSE from its opening levels due to profit booking.
• Subscription Rate: The IPO was heavily oversubscribed by 79.44 times, with QIBs leading at 215.03 times subscription, followed by NIIs at 65.25 times, and retail investors at 11.27 times.
• Trading Range: As of 11:23:48 AM IST, the stock hit a high of ₹2,624.40 and a low of ₹2,300 during early trading.

Growth Drivers and Challenges

Expected drivers of future performance:

• Largest solar PV module manufacturer in India
• Diversified customer base with strong order book
• Advanced manufacturing facilities with global accreditations
• Extensive Pan-India retail network
• Strong track record of financial performance

Potential challenges:

• High competition in solar energy sector
• Raw material price fluctuations
• Regulatory changes
• Dependency on government policies and incentives

Utilisation of IPO Proceeds

Waaree Energies plans to use the funds for:

• Establishing 6GW of Ingot Wafer, Solar Cell and Solar PV Module manufacturing facility in Odisha
• General corporate purposes

Financial Performance

The company has demonstrated strong growth:

• Revenue increased by 69.56% to ₹11,632.76 crore in FY2024 from ₹6,860.36 crore in FY2023
• Profit After Tax (PAT) rose by 154.73% to ₹1,274.38 crore in FY2024 from ₹500.28 crore in FY2023

As Waaree Energies begins its journey as a listed entity, market participants will closely monitor its expansion plans and ability to maintain growth momentum. The strong listing and overwhelming subscription rates suggest optimistic market sentiment towards the company's prospects in the renewable energy sector.