Waaree Energies IPO beats Tata Tech, Bajaj IPOs to achieve record 97 lakh applications; Issue booked 76x, QIBs bid 208x

Waaree Energies IPO: The initial public offering (IPO) of the solar PV module manufacturer Waaree Energies Limited was subscribed over 76 times on the third and last day of the issue. Notably, the Waaree Energies IPO made history on Wednesday, October 23, Receiving a record-breaking response from investors and the highest number of applications in India's primary market history.

With 97.34 lakh applications received at the upper end of the price band until Wednesday, Waaree Energies IPO has broken the record set by the Bajaj Housing Finance IPO, Tata Technologies IPO, and the LIC IPO to become the only company to receive the highest-ever number of applications in a public issue in India.

Follow Live Updates: Waaree Energies IPO Day 3 LIVE Issue booked 76 times; beats Tatas, Bajaj IPOs with record 97 lakh applications

The mainboard IPO opened for subscription on Monday, October 21, 2024, and closed on Wednesday, October 23, 2024. It aims to raise ₹4,321.44 crore via a fresh issue and an offer-for-sale (OFS). Waaree Energies IPO has set aside 50 per cent of the shares for qualified institutional buyers (QIB), 15 per cent for non-institutional investors (NII), and 35 per cent for retail investors. The portion reserved for the employees consists of a maximum of 650 million equity shares.

Waaree Energies IPO Subscription Status

On the third and last day of the issue, Waaree Energies IPO was subscribed 76.34 times. Waaree Energies IPO received 97.34 lakh applications, the highest for any IPO in India's primary market history. Waaree Energies' IPO topped the previous record held by Bajaj Housing Finance, whose IPO received 90 lakh applications, and Tata Technologies' IPO, which garnered 73 lakh applications.

Also Read: Waaree Energies IPO: Price band set at ₹1,427-1,503 per share; check GMP, issue details, more

According to BSE data, the portion reserved for QIBs was booked the highest at 208.63 times, the portion reserved for NIIs was booked 62.49 times, and the portion reserved for retail investors was booked 10.79 times on Wednesday. The employee portion was booked 5.17 times. The IPO received bids worth ₹2,41,857.01 against 2,10,79,384 shares offered on Wednesday.

On the second day of the issue, Waaree Energies IPO was subscribed 8.81 times. According to BSE data, the portion reserved for QIBs was booked 1.73 times, the portion reserved for NIIs was booked the highest at 24.38 times, and the portion reserved for retail investors was booked 6.39 times. The employee portion was booked 3.11 times. The IPO received 18,58,11,795 share applications against 2,10,79,384 shares offered on Tuesday. On the first day, the IPO was booked 3.47 times.

Waaree Energies IPO Details

Waaree Energies IPO combines a fresh issue of equity shares aggregating ₹3,600 crore and an OFS of 48 lakh equity shares worth ₹721.44 crore at the upper end of the price band by a promoter and existing shareholders for a total size of ₹4,321.44 crore. Waaree Energies' IPO price band was fixed at ₹1,427 to ₹1,503 per equity share with a face value of ₹10. In the public issue, shares valued at ₹65 crore were reserved for the solar panel maker's employees. 

Also Read: Waaree Energies IPO: Firm mobilises ₹1,277 crore from anchor investors ahead of subscription

Under the OFS, promoter Waaree Sustainable Finance Private Limited and shareholder Chandurkar Investments Private Limited offloaded shares. Proceeds from the fresh issue will be used to set up the 6GW (gigawatt) Ingot Wafer, Solar Cell, and Solar PV module manufacturing facility in Odisha. A portion will also be used for general corporate purposes.

Tentatively, Waaree Energies IPO's share allotment basis will be finalised on Thursday, October 24. The company will initiate refunds on Friday, October 25. The shares will be credited to the Demat account of allottees on the same day following the refund. Waaree Energies' share price will likely be listed on BSE and NSE on Monday, October 28.

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 book-running lead managers to the issue. JFSL is promoted by Hitesh Chimanlal Doshi, Viren Chimanlal Doshi, Pankaj Chimanlal Doshi, and Waaree Sustainable Finance Private Limited, which are both individuals and entities.

Also Read: Waaree Energies IPO: Check out 10 key things to know from RHP

Waaree Energies IPO Latest GMP

According to stock market experts, the Waree Energies IPO GMP, or grey market premium, rose to ₹1,560 per share today, which shows overwhelming interest among investors. Waree Energies' shares are trading at ₹3,063 in the grey market, a premium of 103.79 per cent to the issue price of ₹1,503 per share. According to investorgain.com, the lowest GMP is Re 0, while the highest is ₹1,560. 'Grey market premium' indicates investors' readiness to pay more than the issue price.

Waaree Energies Ltd Company Details

The company's market valuation has been pegged at over ₹4,300 crore post-issue at the upper end of the price band. Established in December 1990, Waaree Energies Limited is an Indian firm that manufactures solar PV modules and operates with a combined installed capacity of 12 GW.

The assortment of solar energy products includes Multicrystalline modules, Monocrystalline modules, and TopCon modules, which consist of flexible bifacial modules (Mono PERC) in both framed and unframed versions, as well as building-integrated photovoltaic (BIPV) modules.

Also Read: Waaree Energies files DHRP with SEBI to raise ₹3,000 crore through fresh issue, OFS

Waaree Energies, one of India's major players in the solar energy industry, is focused on PV module manufacturing. As of June 30, 2023, its aggregate installed capacity was 12 GW. It operates five manufacturing facilities: one at Surat, Tumb, Nandigram, and Chikhli in Gujarat and the IndoSolar Facility in Noida, Uttar Pradesh.

Waaree Energies IPO Review

Bajaj Broking recommended a ‘Subscribe for Long Term’ rating for Waaree Energies IPO. For Q1 of FY25 ended on June 30, 2024, Waaree Energies Ltd earned a net profit of Rs. 401.12 crore on a total income of Rs. 3496.41 crore. According to the brokerage, it marked a quantum jump in its top and bottom lines from FY23 onwards.

“We are proud of Waaree's remarkable journey where they built the largest solar business in the world (ex of China) despite intense competition. This was achieved on the back of a healthy order book and significant capacity expansion. Through this IPO, they plan to further integrate their operations and enter new segments, fortifying and diversifying their position for continued growth,” said Arvind Kothari, smallcase Manager and Founder of Niveshaay Investment Advisory.
 

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