Waaree Energies Limited has shattered previous records in India’s IPO market with its recent initial public offering (IPO). The solar PV module manufacturer’s IPO, which ran from October 21 to October 23, 2024, received an astounding 97.34 lakh applications. This makes it the highest number of applications ever received for an IPO in India, surpassing those of Tata Technologies, Bajaj Housing Finance, and LIC. The public issue was subscribed over 76 times, with qualified institutional buyers (QIBs) bidding a massive 208 times, underscoring the overwhelming interest in the company.
Waaree Energies Breaks IPO Records
The IPO of Waaree Energies Limited, a leading solar PV module manufacturer, created history as it concluded on Wednesday, October 23, 2024. “Waaree Energies IPO made history on Wednesday, October 23,” becoming the most sought-after public issue in India, receiving 97.34 lakh applications—more than any other IPO in the country’s history. This significant milestone shattered the previous records held by Bajaj Housing Finance (90 lakh applications), Tata Technologies (73 lakh applications), and the much anticipated LIC IPO.
Waaree Energies’ IPO ran for three days, opening on Monday, October 21, 2024, and closing on Wednesday, October 23, 2024. It aimed to raise ₹4,321.44 crore through a combination of a fresh issue of shares and an offer for sale (OFS). With a price band of ₹1,427 to ₹1,503 per equity share, the IPO saw a flurry of bids across all investor categories. The company allocated 50% of the shares for QIBs, 15% for noninstitutional investors (NII), and 35% for retail investors. Additionally, employees were offered up to 650 million equity shares.
Unprecedented Response Across Investor Categories
By the final day of the IPO, Waaree Energies’ public issue was subscribed a remarkable 76.34 times. It received overwhelming interest from all investor categories. The QIB segment recorded the highest interest, with bids placed 208.63 times the shares reserved. “The portion reserved for NIIs was booked 62.49 times,” while the retail segment was subscribed 10.79 times. Employees, too, showed significant participation, with their portion booked 5.17 times.
In terms of total bids, the IPO received ₹2,41,857.01 crore worth of bids against 2,10,79,384 shares offered. On the second day, the IPO had been subscribed 8.81 times, and by the close of the first day, it had been subscribed 3.47 times. The momentum built quickly, as evident from the gradual increase in bids throughout the subscription period.
IPO Details and Share Allotment Timeline
The Waaree Energies IPO involved a fresh issue of equity shares worth ₹3,600 crore, alongside an OFS of 48 lakh equity shares valued at ₹721.44 crore. The promoter Waaree Sustainable Finance Private Limited, along with Chandurkar Investments Private Limited, offloaded their shares through the OFS.
The funds raised will primarily be used for expanding Waaree Energies’ manufacturing capabilities. Specifically, the company plans to set up a 6GW facility for producing ingot wafers, solar cells, and solar PV modules in Odisha. The remaining proceeds will be allocated for general corporate purposes.
The basis for share allotment will be finalized on Thursday, October 24, with refunds initiated on Friday, October 25. Investors who are allotted shares will have them credited to their Demat accounts on the same day. Waaree Energies’ shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Monday, October 28.
Waaree Energies’ Growth Trajectory and Market Valuation
Waaree Energies is among India’s largest players in the solar energy sector, with an aggregate installed capacity of 12 GW as of June 30, 2023. Its five manufacturing facilities—located in Surat, Tumb, Nandigram, Chikhli (Gujarat), and Noida (Uttar Pradesh)—have made it a major player in the renewable energy market.
Established in December 1990, the company has expanded its product offerings to include multicrystalline modules, Monocrystalline modules, TopCon modules, and bifacial modules, positioning itself as a key supplier in the solar PV module industry.
The company’s postissue market valuation is expected to exceed ₹4,300 crore at the upper end of the price band. Waaree Energies’ leadership continues to express confidence in the future of solar energy in India. “We are proud of Waaree’s remarkable journey,” said Arvind Kothari, smallcase Manager and Founder of Niveshaay Investment Advisory, praising the company’s competitive advantage and its plans to diversify further.
Strong Grey Market Premium Shows Investor Confidence
Interest in Waaree Energies is evident even in the grey market, where the company’s shares are trading at ₹3,063—representing a premium of 103.79% over the issue price of ₹1,503. Experts have noted the strong grey market premium (GMP), which has surged to ₹1,560, as an indication of high demand and positive sentiment towards the stock.
As Waaree Energies looks ahead to its listing on October 28, market analysts are bullish about its growth prospects, especially considering its strong financials and solid foothold in the solar energy market.
With a record-breaking number of applications, Waaree Energies’ IPO has marked a significant moment in India’s financial history. As the company continues to lead in the solar energy sector, its future looks bright, fuelled by an ambitious expansion plan. For investors and market enthusiasts, all eyes will be on the listing day to see how this solar giant fares on the stock exchanges.
