Waaree Energies, one of India’s leading solar energy companies, is ready to make its debut on the stock market with an Initial Public Offering (IPO) starting on Monday, October 21, and closing on Wednesday, October 23. Investors are eagerly waiting for this IPO as Waaree Energies has a strong presence in the solar energy sector, which is growing rapidly due to increasing awareness and government support for renewable energy.
Here’s a detailed look at Waaree Energies’ IPO and what investors should know before considering it.
IPO Price Band and Issue Size
Waaree Energies has set its IPO price band between ₹1,427 to ₹1,503 per equity share, with a face value of ₹10 per share. The company aims to raise a total of ₹3,600 crore through this public offering. This includes new equity shares and an offer to sell a maximum of 4.8 million shares.
To ensure that a wide range of investors can participate, Waaree Energies has reserved shares for different categories:
- 50% of the shares are set aside for Qualified Institutional Buyers (QIBs), such as banks and mutual funds.
- 15% is allocated to Non-Institutional Investors (NIIs), which include high-net-worth individuals.
- 35% is reserved for retail investors, giving individuals an opportunity to invest in the IPO. Additionally, the company has set aside up to 650 million shares for employees of Waaree Energies, further promoting broader ownership.
Waaree Energies was founded in December 1990 and has since grown into a major player in the Indian solar industry. The company currently operates with an impressive installed capacity of 12 GW and produces a wide range of solar energy products. These products include Multicrystalline modules, Monocrystalline modules, and TopCon modules, which also include bifacial flexible modules like Mono PERC in both framed and unframed versions. Waaree Energies also provides Building-Integrated Photovoltaic (BIPV) modules, which allow the integration of solar panels into buildings.
One of the key factors that investors are closely watching is the Gray Market Premium (GMP), which provides a signal of expected demand for the IPO before its official listing. As of today, the GMP for Waaree Energies stands at ₹1,330. This means that the shares are trading at a premium of ₹1,330 in the unofficial gray market.
Considering the upper limit of the IPO price band (₹1,503), this indicates that Waaree Energies’ estimated listing price could be around ₹2,833 per share. This is a significant 88.49% increase from the IPO price, showing strong investor interest in the company. Over the last five days, the GMP has shown a positive trend, suggesting a robust market debut.
The Waaree Energies IPO presents a promising opportunity for investors to participate in India’s growing renewable energy sector. With a strong GMP and a well-established presence in the solar industry, the company’s market debut is expected to be strong. Investors should analyze all available information, consider potential risks, and make informed decisions before subscribing to the IPO.
