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The initial public offering (IPO) of Waaree Energies, a leading player in the solar energy sector, witnessed strong demand on its second day of bidding, October 22nd. The IPO, seeking to raise Rs 4,321 crore, was oversubscribed 4.52 times, with investors placing bids for 9.5 crore shares against the 2.1 crore shares available. This strong response highlights the market's confidence in the company's growth prospects and the increasing interest in the renewable energy sector.
Non-institutional investors emerged as the driving force behind the IPO's success, subscribing almost 12 times the portion reserved for them. Retail investors also showed significant interest, with their segment being subscribed 4 times. The employee quota received a 1.96 times demand, while Qualified Institutional Buyers (QIBs) picked up 9 percent of the shares reserved for them. The IPO consists of a fresh equity issue worth Rs 3,600 crore and an offer-for-sale (OFS) of 48 lakh shares from promoters and existing shareholders, valued at Rs 721.44 crore at the upper price band, bringing the total issue size to Rs 4,321.44 crore.
The proceeds from the fresh issue will be primarily used to establish a 6 GW facility in Odisha, focused on producing ingot wafers, solar cells, and PV modules. This strategic investment underscores Waaree Energies' commitment to expanding its manufacturing capabilities and strengthening its position in the solar energy value chain. A portion of the funds will also be allocated for general corporate expenses, further supporting the company's growth and expansion plans.
Waaree Energies currently operates five manufacturing plants across India, including facilities in Surat, Tumb, Nandigram, and Chikhli in Gujarat, and IndoSolar in Noida, Uttar Pradesh. This robust infrastructure, combined with its focus on innovation and technological advancements, positions the company as a key player in the Indian solar energy market. The successful IPO and the substantial funding it will generate are expected to further accelerate Waaree Energies' growth trajectory, bolstering its market share and driving the adoption of solar energy in India.
Source: Waaree Energies IPO: Issue subscribed over 4x on Day 2 so far, NIIs lead