Waaree Energies IPO: Will it double your investment? Here’s what experts say

Shares of Waaree Energies Limited are set to make their debut on the stock market on Monday, October 28, 2024. Investors are looking forward to the company’s performance, hoping for a positive return on their investments in the public issue.
Waaree Energies Initial Public Offering (IPO) attracted significant interest from investors. The IPO was subscribed 79.44 times by the end of the bidding process on October 23, 2024. In the retail category, it was subscribed 11.27 times. The Qualified Institutional Buyers (QIB) category saw a much higher interest, with a subscription of 215.03 times, while the Non-Institutional Investors (NII) category was subscribed 65.25 times.
Market experts are optimistic about Waaree Energies’ listing. According to analysts, the stock is expected to list at a premium, supported by a strong Grey Market Premium (GMP). The GMP stood at Rs 1,370 as of October 25, 2024, which suggests a listing price of around Rs 2,873. This is a significant increase over the issue price of Rs 1,503, reflecting a potential gain of 91.15%.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, noted the positive outlook: “We can expect a strong listing for Waaree Energies, supported by its impressive grey market premium of 103.79%. Based on this, the stock is likely to list around Rs 3,063, reflecting a gain of Rs 1,560 over the issue price. The strong investor interest and the company’s solid fundamentals back this expected listing price.”
For those who received an allotment of shares in the IPO, Nyati suggests a balanced approach. She advises that investors with a long-term view might consider holding onto the stock, given Waaree Energies’ leadership in the renewable energy sector. The company’s potential for growth in solar energy makes it an attractive investment for those looking beyond the short term.
However, Nyati also points out that investors with a short-term focus could benefit from booking partial profits on listing day, especially if the stock price rises significantly. She cautions that market conditions post-listing may affect short-term price movements, so investors should remain alert.
The latest Grey Market Premium (GMP) for Waaree Energies’ IPO, as of October 25, 2024, was Rs 1,370. This places the estimated listing price at Rs 2,873, considering the cap price of Rs 1,503 plus the GMP. This anticipated price hike has generated excitement among investors, indicating strong confidence in the stock’s performance.
Founded in 1990 and headquartered in Mumbai, Waaree Energies is one of India’s leading manufacturers of solar photovoltaic (PV) modules. The company boasts an installed capacity of 12 GW and specialises in producing multicrystalline PV modules, which are widely used in solar energy systems. This focus on solar technology positions Waaree Energies as a key player in India’s growing renewable energy market.
The IPO of Waaree Energies has been managed by a group of well-known financial institutions. These include Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital. Link Intime India has taken on the role of the registrar for the issue, handling the allocation and distribution of shares to investors.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)