The highly anticipated initial public offering (IPO) of Waaree Energies has witnessed an unprecedented response from Indian investors, with a staggering 97.34 lakh applications pouring in, surpassing the previous records held by Bajaj Housing Finance and Tata Technologies. This exponential growth is a testament to the investor’s confidence in the company’s potential for future growth.
The IPO, priced at Rs 1,503 at the upper end, has garnered bids worth a whopping Rs 2.41 lakh crore, with the overall subscription standing at a whopping 76 times. The institutional investment category saw a remarkable 208 times subscription, while non-institutional investors’ portion received 62 times subscription.
Waaree Energies, a market leader in PV module-making, has received widespread attention, driven by its ambitious global expansion plans. The company plans to utilize the funds raised from the IPO to establish a 6-gigawatt manufacturing facility for ingots, wafers, solar cells, and PV modules in Odisha, as well as support general corporate purposes.
As the largest manufacturer of solar PV modules in India, with a capacity of 12 GW as of June 2024, Waaree Energies has consistently demonstrated its strength, with its revenue from operations jumping 69% year-on-year to Rs 11,398 crore for FY24. Profit after tax more than doubled to Rs 1,274 crore during the same period.
The success of the IPO has resulted in a grey market premium of nearly 97% over the issue price, a clear indication of the high demand for the company’s shares. The book-running lead managers, including Axis Capital, IIFL Securities, Jefferies India, Nomura Financial, SBI Capital, Intensive Fiscal Services, and ITI Capital, have done an excellent job in managing the IPO’s offer, which will go down in history as one of the most successful in the Indian primary market.
As investors’ appetite for Waaree Energies remains strong, the company’s global expansion plans, including the establishment of a 3 GW manufacturing facility in the United States, are likely to further diversify its operational capabilities, solidifying its position as a leading player in the industry.
