Mon Oct 21 17:00:44 UTC 2024: – **IPO Response**: Waaree Energies Ltd’s IPO saw strong demand on the first day, with non-institutional investors (NIIs) subscribing 8.09 times and retail investors 3.17 times. Overall subscription was at 3.32 times.
– **Subscription Details**: The IPO’s total bids were 6,98,85,360 against 2,10,79,384 shares available. Employee categories saw 1.57 times subscription, while qualified institutional buyers (QIBs) reached 8%.
– **IPO Schedule and Pricing**: The three-day subscription will end on October 23, with shares priced between Rs 1,427 to Rs 1,503. Waaree aims to raise Rs 4,321.4 crore, including Rs 3,600 crore from new equity shares and Rs 721 crore from an offer-for-sale by promoters.
– **Analyst Recommendations**: Bajaj Broking advises subscribing to the IPO for long-term gains, noting the company’s average earnings per share (EPS) and strong return on net worth (RoNW).
– **Financial Performance**: Waaree Energies reported significant revenue growth from Rs 2,854.3 crore in fiscal 2022 to Rs 11,397.6 crore in fiscal 2024, with net profit increasing by 154.8% during the same period.
– **Growth and Risks**: The company is positioned for growth with expansion plans, including a 6 GW facility in Odisha. However, it faces risks associated with dependence on US exports and Chinese raw materials.
– **Market Premium**: In the grey market, shares of Waaree Energies were trading at a premium of 100.8%, indicating strong investor interest before the stock’s expected listing on October 28.
First Piper 