Mon Oct 28 07:58:26 UTC 2024: ## Waaree Energies IPO Lists with 70% Premium, Later Drops Due to Profit-Booking

**Mumbai, October 28, 2024:** Waaree Energies, India’s largest solar PV module manufacturer, made a spectacular debut on the stock market today, listing at a hefty 70% premium to its issue price. However, the initial euphoria was short-lived as profit-booking pressure brought the stock down later in the day.

The company’s ₹27870 crore IPO, which saw shares issued at ₹1503, opened at ₹2550 on BSE and ₹2500 on NSE. Despite this strong opening, the stock closed at ₹2301.05 on BSE, still yielding a 53.10% profit for IPO investors.

Waaree Energies’ IPO had received an overwhelming response from investors, garnering a 79.44 times subscription during the offer period of October 21-23. The QIB portion was oversubscribed 215.03 times, while NII received 65.25 times subscription and retail investors 11.27 times. The IPO comprised ₹3,600.00 crore of fresh equity and ₹48 lakh shares offered for sale. The proceeds from the fresh issue will be used for expanding solar cell and solar PV module manufacturing facilities in Odisha, setting up a solar cell and 6 GW ingot wafer facility, and for general corporate purposes.

Established in December 1990, Waaree Energies is a dominant player in the solar PV module manufacturing space in India. The company boasts an aggregate installed capacity of 12 GW and serves clients both domestically and internationally. Waaree has witnessed a strong financial performance in recent years, with net profit rising from ₹79.65 crore in FY22 to ₹500.28 crore in FY23 and ₹1,274.38 crore in FY24. Revenue has grown at a CAGR of over 982% to ₹11,632.76 crore during this period. For Q1 FY25 (April-June 2024), the company reported net profit of ₹401.13 crore and revenue of ₹3,496.41 crore.

The strong listing and subsequent decline in Waaree Energies’ stock highlights the volatile nature of the IPO market. While investors initially celebrated the strong debut, profit-booking pressure quickly emerged. The company’s long-term performance will be crucial in determining whether the IPO investors’ initial gains will be sustained.

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