As the Indian stock market heats up with fresh IPOs, one of the most talked-about public offerings is Waaree Energies IPO. Investors are eager to know if this solar energy giant’s IPO is worth betting on.
With sustainability becoming the new buzzword and Waaree’s leading position in the solar PV module market, this IPO has generated significant interest. But the key question remains: Should you subscribe or avoid the Waaree Energies IPO?
In this review, we will break down the details, evaluate the risks, and assess the potential for listing gains.
Overview of Waaree Energies IPO
Waaree Energies aims to raise ₹4,321.44 crores through a book-built IPO, which includes both a fresh issue of shares worth ₹3,600 crores and an offer for sale (OFS) component worth ₹721.44 crores.
- IPO Opening Date: October 21, 2024
- IPO Closing Date: October 23, 2024
- IPO Price Band: ₹1,427 to ₹1,503 per share
- Lot Size: Minimum of 9 shares per application
- Allotment Date: October 24, 2024
- Listing Date: October 28, 2024
The IPO will be listed on both the BSE and NSE, and investors are eagerly watching to see if it will offer significant listing gains.
Also Read: Upcoming IPOs With Shareholder Quota in 2024
Investment Details and Lot Size
Here is a quick breakdown of investment requirements across categories:
| Investor Type | Lots | Shares | Investment Amount |
| Retail (Min) | 1 | 9 | ₹13,527 |
| Retail (Max) | 14 | 126 | ₹189,378 |
| S-HNI (Min) | 15 | 135 | ₹202,905 |
| B-HNI (Min) | 74 | 666 | ₹1,000,998 |
The shareholder quota is reserved for 35% of the net issue for retail investors, while 50% is allocated for Qualified Institutional Buyers (QIBs), and 15% for Non-Institutional Investors (NIIs).
Waaree Energies: A Market Leader in Solar Energy
Incorporated in 1990, Waaree Energies is one of India’s largest solar PV module manufacturers, boasting an installed capacity of 12 GW. The company’s product portfolio includes multicrystalline modules, monocrystalline modules, and bifacial modules.
With manufacturing facilities in Surat, Tumb, Nandigram, and Chikhli, Waaree Energies stands out for its advanced capabilities and global accreditations. The company has ISO certifications for quality management and safety standards.
Competitive Strengths
Waaree Energies offers several advantages to investors:
- Leadership in Solar PV Manufacturing: Largest PV module manufacturer in India.
- Global and Domestic Client Base: Strong order book and diversified customer portfolio.
- Advanced Manufacturing Facilities: Equipped with the latest technology and certifications.
- Financial Performance: Strong revenue and profit growth over the years.
- Experienced Management Team: Led by seasoned professionals in the solar energy industry.
Financial Performance
| Period Ended | Revenue (₹ Cr) | PAT (₹ Cr) | Assets (₹ Cr) |
| March 31, 2022 | 2,946 | 79.65 | 2,237.4 |
| March 31, 2023 | 6,860 | 500.28 | 7,419.92 |
| March 31, 2024 | 11,632 | 1,274.38 | 11,313.73 |
| June 30, 2024 | 3,496 | 401.13 | 11,989.48 |
Waaree Energies has demonstrated impressive growth with 70% revenue growth and 155% rise in PAT between FY23 and FY24. This financial consistency adds to the appeal of the IPO.
Key IPO Metrics and Valuation
| Metric | Pre-IPO | Post-IPO |
| EPS (₹) | 48.69 | 56.16 |
| P/E Ratio (x) | 30.87 | 26.76 |
| Market Cap (₹ Cr) | 42,939.36 | – |
| Debt/Equity Ratio | 0.06 | – |
The P/E ratio of 26.76 post-IPO makes Waaree Energies reasonably priced compared to industry peers.
IPO Objectives
The proceeds from the fresh issue will be used to:
- Fund a 6 GW solar module manufacturing facility in Odisha.
- Cover general corporate expenses.
This expansion will bolster Waaree’s manufacturing capacity, meeting rising domestic and global demand for solar energy products.
Risks to Consider
- Market Volatility: Stock market fluctuations could affect listing gains.
- Industry Competition: Intense rivalry from global solar energy firms.
- Regulatory Risks: Changes in government policies could impact business.
- Execution Risks: Large-scale expansion projects might face delays.
Waaree Energies IPO Subscription and Allotment Status
The Waaree Energies IPO subscription status will be updated in real time between October 21 and October 23, 2024. Investors can check the allotment status via the Link Intime India Private Ltd portal.
- Subscription Start Date: October 21, 2024
- Subscription Close Date: October 23, 2024
- Allotment Date: October 24, 2024
- Refund Initiation: October 25, 2024
- Listing Date: October 28, 2024
Should You Apply for the Waaree Energies IPO?
The Waaree Energies IPO offers a unique investment opportunity, given its position as a leader in the renewable energy sector. With India focusing on sustainable energy solutions and Waaree’s strong financial performance, investors can expect decent listing gains.
However, short-term risks remain, especially with fluctuating market conditions. Long-term investors with a focus on the solar energy sector may find this IPO attractive due to the company’s expansion plans and consistent track record.
Conclusion: Apply or Avoid?
In summary, the Waaree Energies IPO presents a promising opportunity for investors seeking exposure to the renewable energy space. The IPO pricing is competitive, the company’s financials are strong, and its future prospects look bright. While short-term volatility is a factor, long-term investors might benefit from this offering.
For those seeking listing gains, the Waaree Energies IPO looks favorable, but market conditions should be monitored closely before making a final decision.
