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The initial public offering (IPO) of Waaree Energies Ltd (WEL), a prominent solar panel manufacturer, has concluded with overwhelming success, receiving a staggering 79.44 times subscription by the end of its three-day bidding period. This robust response from investors underscores the confidence in the company's future prospects and the growing demand for renewable energy solutions. The IPO, valued at Rs 4,321 crore, witnessed strong participation across all investor categories, with the qualified institutional buyer (QIB) quota attracting the highest subscription at 215.03 times. Retail investors, a crucial segment for IPO success, also displayed strong interest, subscribing 11.27 times the allotted quota.
The grey market premium (GMP), which reflects investor expectations for listing gains, further amplifies the positive sentiment surrounding Waaree Energies' IPO. With a GMP of Rs 1,470, the grey market anticipates a significant 97.8% listing gain. This premium, which has witnessed a slight increase since the morning hours, indicates a strong demand for shares even before the company's official listing on the stock exchanges. This positive outlook is corroborated by numerous analysts who have given 'subscribe' ratings to the IPO, citing Waaree Energies' favorable growth outlook, robust order book, and impressive financial performance.
Geojit Financial Services, a brokerage firm, recommends the IPO for medium to long-term investment, highlighting the company's competitive edge. The firm cites the company's P/E ratio of 34x for FY24, which is at a discount compared to its listed peers, as a key factor supporting its recommendation. Anand Rathi, another brokerage firm, also gives a 'subscribe' rating, recognizing the company's legacy, government support, and growth opportunities in the burgeoning renewable energy sector. Swastika, a third brokerage firm, shares the optimistic sentiment, highlighting Waaree Energies' impressive financial performance and focus on growth and expansion.
The IPO proceeds will be strategically allocated towards expanding the company's manufacturing capacity and strengthening its position in the solar energy market. Waaree Energies plans to establish a new 6 GW Ingot Wafer, Solar Cell, and Solar PV module manufacturing facility in Odisha, a key step in its growth strategy. The company's commitment to innovation and sustainability, coupled with its backward integration strategy, is poised to bolster its competitiveness in the rapidly evolving renewable energy landscape.
Waaree Energies, a prominent player in India's solar energy industry, has built a strong foundation with an aggregate installed capacity of 12 GW as of June 30, 2023. Its five manufacturing facilities across Gujarat and Uttar Pradesh serve as strategic hubs for its operations, facilitating the production of high-quality solar panels. With its robust manufacturing capabilities and focus on innovation, Waaree Energies is well-positioned to capitalize on the growing global demand for solar energy solutions.
As the world transitions towards a sustainable future, the demand for renewable energy solutions, particularly solar energy, is expected to soar. Waaree Energies, with its proven track record, robust financial performance, and ambitious growth plans, is poised to play a pivotal role in this global shift. The IPO's overwhelming success and the positive outlook from analysts suggest a bright future for Waaree Energies. With its focus on innovation, sustainability, and capacity expansion, the company is well-positioned to navigate the complexities of the renewable energy sector and deliver long-term value to its investors.
Source: Waaree Energies IPO Receives 79.44x Subscription on Day 3, Check GMP Today