Waaree Energies IPO day 2: GMP, subscription status, review, other details. Should you apply?

Waaree Energies IPO: Subscription for the initial public offering (IPO) of Waaree Energies Limited began on 21st October 2024 and will remain open for bidders until 23rd October 2024. The solar PV module maker company has fixed Waaree Energies IPO price band at 1427 to 1503 per equity share. The company aims to raise 4,321.44 crore, out of which 3.600 crore is aimed through the issuance of fresh shares. As per the Waaree Energies IPO subscription status, the public issue received a decent response from the Indian primary market investors. Meanwhile, after the decent reaction by investors, the grey market has gone highly bullish on the Waaree Energies IPO. According to stock market observers, Waaree Energies’ share price is trading at a premium of 100 per cent.

According to market observers, Waaree Energies IPO GMP (Grey Market Premium) today is 1503, which is 30 higher than Monday’s Waaree Energies IPO GMP of 1473. Market observers said the rise in grey market sentiment can be attributed to the strong response received by Indian primary market investors. They said that grey market sentiments may improve further once there is a trend reversal on Dalal Street.

After the end of bidding on day one, the public issue had been subscribed 3.32 times, the retail portion of the book build issue had been booked 3.17 times, and the NII segment had been filled 8.09 times. The QIB segment was filled 0.08 times.

Waaree Energies IPO review

Assigning a ‘subscribe’ tag to the book build issue, Sagar Shetty, Research Analyst at StoxBox, said, “On the financial front, the company’s operational revenue grew at an outstanding CAGR of 99.8% from FY22 to FY24. Profit after tax rose from Rs. 796.50 million in FY22 to Rs. 12,743.77 million in FY24, while return on equity (ROE) improved from 17.69% to 30.26%. The company’s global expansion, competitive pricing, and strong order book ensure revenue stability, business continuity, and sustainable growth while optimising worldwide sourcing and supply chain costs. The company is valued at a PE ratio of 31.4x on the upper price band based on FY24 earnings, which is lower than its peers. Given its strong financial growth and substantial order book, the company is well-positioned to grow within the sector. Therefore, we recommend a “SUBSCRIBE” rating for medium to long-term investment.”

Motilal Oswal has also assigned a ‘subscribe’ tag to the public issue, saying, “The IPO is reasonably priced at 26.9x Q1FY25 P/E (on a diluted basis). With Waaree Energies being a market leader in the solar module segment and positive factors like growing global demand for solar energy, strong government focus on the renewable sector, and impetus on the China Plus One Policy, the company is favourably positioned. Hence, I recommend ‘SUBSCRIBE’ on the issue. Given the current buoyant market and high interest for renewable energy-related stocks, the issue could catch investors’ fancy and see listing gains.”

Aditya Birla Securities, Canara Bank Securities, Choice Broking, Geojit Securities, Marwadi Shares and Finance, Monarch Networth Capital, Ventura Securities and Swastika Investmart have also assigned the public issue a ‘subscribe’ tag.

Waaree Energies IPO details

Waaree Energies IPO allotment date is most likely on 24th October 2024 and the most likely Waaree Energies IPO listing date is 28th October 2024.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.

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