Waaree Energies IPO: Last Bidding Day, GMP, Subscription Status, and Expert Review

The initial public offering (IPO) of Waaree Energies, a leading solar PV module manufacturer, is set to close today, 23rd October 2024. Investors have shown strong interest in the IPO over the past two days, especially from non-institutional and retail segments. As of today, the Grey Market Premium (GMP) has surged significantly, reflecting bullish sentiment around the listing.

Waaree Energies IPO GMP

According to market observers, the Waaree Energies IPO is trading at a Grey Market Premium (GMP) of ₹1,375, which is ₹30 higher than Monday’s GMP of ₹1,473. This represents a premium of 91.48% over the issue price, indicating a strong potential for listing gains. The highest recorded GMP in the last ten sessions was ₹1,545, showcasing upward momentum and investor confidence in the stock.

Waaree Energies IPO Subscription Status

As of the second day of the bidding period, the Waaree Energies IPO was oversubscribed by 8.81 times. Non-institutional investors have shown significant interest, subscribing to 24.38 times their allotted portion, while retail investors subscribed 6.39 times. Qualified Institutional Buyers (QIBs) subscribed 1.73 times, and the employee segment was subscribed 3.11 times.

On the first day, the IPO saw a subscription of 3.32 times, with retail investors subscribing to 3.17 times, non-institutional investors to 8.09 times, and QIBs receiving 8% of the total shares. The employee portion was subscribed 1.57 times.

Waaree Energies IPO Details

• Price Band: ₹1,427 to ₹1,503 per equity share

• IPO Size: ₹4,321.44 crore

• Fresh Issue: ₹3,600 crore through issuance of new shares

• IPO Dates: 21st October to 23rd October 2024

• Allotment Date: 24th October 2024 (tentative)

• Listing Date: 28th October 2024 (tentative)

Financial Performance and Expert Review

Waaree Energies has demonstrated strong financial growth, with its operational revenue growing at a compound annual growth rate (CAGR) of 99.8% from FY22 to FY24. Profit after tax increased from ₹796.50 million in FY22 to ₹12,743.77 million in FY24, while return on equity (ROE) improved from 17.69% to 30.26%.

Given its strong order book, competitive pricing, and robust global expansion, experts are optimistic about the company’s future performance. Sagar Shetty, Research Analyst at StoxBox, noted, "The company’s competitive positioning and significant growth make it a strong candidate for medium to long-term investment. With a price-to-earnings (PE) ratio of 31.4x on the upper price band, the IPO is reasonably valued compared to peers. We recommend subscribing to this issue."

Similarly, Motilal Oswal assigned a 'subscribe' rating, citing the company’s leadership in the solar module industry and the favorable market conditions surrounding renewable energy. The firm expects the IPO to perform well, especially given the growing global demand for solar energy and government incentives.

Should You Apply?

Considering Waaree Energies' strong financial performance, attractive GMP, and favorable market positioning in the solar energy sector, experts are recommending investors to subscribe to the IPO for both listing gains and long-term growth potential.

However, as always, investors are advised to conduct their own research or consult financial advisors before making any investment decision.