Waaree Energies IPO receives 79.44x subscription on day 3, check GMP today – News18

Afternoon Energies IPO: The initial public offering of solar panel manufacturer Waaree Energies Ltd (WEL) closed today, Wednesday October 23. The Rs 4,321-crore IPO, which was subscribed by over 50 per cent in the first hour of bidding, received 79.44 times subscription till the end of the second day of bidding on Tuesday. Its gray market activity also indicates a solid 92% listing gain for investors.

Till 5:00 pm on the last day of bidding on Monday, the Waaree Energies IPO received aggregate bids for 1,60,91,61,741 shares against 2,02,56,207 shares on offer, representing a total subscription of 79.44 times.

Its retail quota has been subscribed 11.27 times so far, while its non-institutional investor (NII) category has received 65.25 times subscription. So far, the QIB quota has received 215.03 times subscription.

Apart from this, there was also a quota of employees. In this context, 5.45 times the subscription was received.

The allotment of shares in the Waaree Energies IPO is likely to be finalized on October 24.

Afternoon Energies IPO: key dates

The Waaree Energies IPO remained open for public subscription between October 21 and 23. The allotment of shares in Waaree Energies’ IPO is likely to be finalized on October 24, while its shares will be listed on both the BSE and the NSE on October 28.

Afternoon Energies IPO: price range

The IPO price band of Rs 4,310.44 crore has been fixed between Rs 1,427 and Rs 1,503 per share for the public issue.

Afternoon Energies IPO: GMP today

According to market observers, unlisted shares of Waaree Energies Ltd are trading in the gray market at just Rs 1,470 more than their issue price. The gray market premium or GMP of Rs 1,470 means that the gray market is expecting a listing gain of 97.8% from the public issue.

The Rs 1,470 GMP is higher than the morning premium of Rs 1,375.

GMP is based on market sentiments and keeps changing. The “gray market premium” indicates that investors are willing to pay more than the issue price.

Waaree Energies IPO: analyst recommendations

Analysts at most brokerages have assigned a ‘subscribe’ rating to the IPO due to Waaree Energies’ growth prospects, strong order book as well as financial performance.

Assigning a rating of ‘subscribe to medium to long term investment’, brokerage firm Geojit Financial Services said in its IPO note: “At the upper price band of Rs 1,503, WEL is trading at a P/E ratio of 34x for FY24, which is a reduction compared to its listed peers.

Considering its module manufacturing experience, backward integration, leading export position, strong order book and government policies such as China Plus One, we assign an ‘S’ rating subscribe” for medium and long-term investments, he adds.

Another brokerage firm, Anand Rathi, has also given the IPO a ‘subscribe’ rating. He said: “The company’s heritage, supported by government support and growth opportunities in renewable energy, could drive further growth. »

He also believes that with solar power emerging as a key global theme in the transition to renewable energy, Waaree Energies (WEL) is well placed to capitalize on this growing opportunity given its dominant market share, financial strengths and a focus on innovation and sustainability. , alongside expanding its capabilities through backward integration.

On valuation, Anand Rathi said Waaree is looking for an annualized FY25 P/E of 26 times, with a market capitalization of Rs 431,786 million, which is a reasonable price.

Brokerage firm Swastika has also given the IPO a ‘subscribe’ rating. He remains optimistic about Waaree Energies’ focus on growth and expansion, as well as its remarkable financial performance.

The IPO is priced at a fair P/E valuation and investors should consider applying for potential listing gains and long-term appreciation, Swastika said.

Waaree Energies IPO: more details

The IPO is a combination of a fresh issue of equity shares totaling Rs 3,600 crore and an offer for sale (OFS) of 48 lakh equity shares worth Rs 721.44 crore, at the upper end of the price band, by a promoter and existing shareholders. . This translates to a total issue size of Rs 4,321.44 crore.

The IPO price range is Rs 1,427 to Rs 1,503. The minimum lot size for the IPO is 9 shares. So, retail investors need to apply with a minimum investment amount of Rs 13,527. The minimum lot size investment for a small NII is 15 lots (135 shares), amounting to Rs 2,02,905, and for a large NII, it is 74 lots (666 shares), amounting to Rs 10,00,998.

Additionally, shares worth Rs 65 crore have been reserved for employees of the solar panel maker.

Under the OFS, promoter Waaree Sustainable Finance Pvt Ltd and shareholder Chandurkar Investments Private Ltd are selling their shares.

The proceeds from the fresh issue will be used for setting up the 6 GW manufacturing plant of ingots, solar cells and solar PV modules in Odisha. Additionally, a portion will be used for general corporate purposes.

The company’s market valuation was pegged at over Rs 4,300 crore post-issue, at the upper end of the price band.

Half of the issue size has been reserved for qualified institutional investors, 35 percent for retail investors and the remaining 15 percent for non-institutional investors.

Waaree Energies, a leading player in the solar power industry in India, is focused on manufacturing photovoltaic modules with an overall installed capacity of 12 GW as of June 30, 2023.

It operates five manufacturing facilities with one factory each, located at Surat, Tumb, Nandigram and Chikhli in Gujarat, as well as the IndoSolar facility, in Noida, Uttar Pradesh.

Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India) Private Ltd, SBI Capital Markets, Intensive Fiscal Services and ITI Capital are the lead book-running managers of the issue.