Waaree Energies shares made an impressive debut on Monday, opening at Rs 2,550 on the Bombay Stock Exchange (BSE)—a 69.66% premium over its IPO price of Rs 1,503. With a focus on expanding India’s solar power capabilities, Waaree Energies, India’s largest solar module manufacturer, capitalized on strong investor interest, but its shares fell 10% shortly after listing. Should investors hold onto or sell their shares after this dramatic entrance?
A Historic Debut and Investor Attraction
Waaree Energies shares opened at Rs 2,550 on the BSE, marking a 70% premium over the IPO price. Similarly, on the National Stock Exchange (NSE), shares began trading at Rs 2,500, a 66.33% premium. This significant opening follows a well-received Initial Public Offering (IPO) that closed on October 23, 2024, with the IPO being oversubscribed 79.44 times. In a historic first, Waaree received an impressive 97.34 lakh applications, surpassing the previous record set by Bajaj Housing Finance’s IPO in September 2024.
Waaree Energies, a leader in solar module production with a capacity of 13.3 GW, has grown sixfold since FY21 when it operated at just 2 GW. With a market share of 21% in India and 44% in solar module exports, Waaree’s growth trajectory is buoyed by increasing demand for renewable energy solutions domestically and internationally.
IPO Attracts Unprecedented Interest
Waaree Energies’ IPO saw remarkable interest from various investor categories. The IPO, comprising a fresh issue of 23,952,095 shares and an offer for sale of 4,800,000 shares, was open from October 21 to October 23, 2024, with a price band of Rs 1,427–1,503 per share. By the close of the bidding process, the IPO achieved an oversubscription rate of 76.34 times, with Qualified Institutional Buyers (QIB) subscribing 208.63 times, Non-Institutional Investors (NII) at 62.49 times, and retail investors subscribing 10.79 times.
Astha Jain, a senior research analyst at Hem Securities, noted, “Investors should consider booking partial profits, while holding a portion for the long term due to Waaree’s solid fundamentals, strong brand, and favorable industry conditions.”
Post-Listing: Strong Start Followed by Profit-Taking
Despite the strong debut, shares of Waaree Energies quickly dropped by 10% from their opening price, with investors capitalizing on early profits. This initial volatility comes amidst expectations from the grey market, where Waaree shares traded at a premium of Rs 1,275 before listing, an anticipated 84.83% gain over the IPO price.
Independent analyst Ambareesh Baliga suggests a cautious approach, advising against fresh buys at the current high valuation levels. He recommended, “Allottees should consider booking 50% profits, as I don’t foresee these levels holding. A re-entry around Rs 2,000–2,200 per share could be more advantageous.”
Strong Fundamentals and a Vision for Growth
The positive listing reflects Waaree’s solid market reputation and capacity in the renewable energy sector. Head of Wealth at Swastika Investmart Ltd., Shivani Nyati, praised Waaree’s robust financial growth and its global and domestic client base, stating, “Waaree has a strong focus on growth and expansion with a well-diversified order book.”
Waaree Energies’ foundation as a solar energy solutions provider extends beyond solar PV modules to solar water pumps and rooftop solutions. With exports to over 68 countries, Waaree’s innovation-driven approach supports its R&D and broadens its product offerings, aligning with India’s vision for increased renewable energy adoption.
What Should Investors Do Now?
Waaree’s strong fundamentals and growth potential make it a promising long-term investment. Yet, analysts have mixed views on immediate buying. Astha Jain, senior research analyst at Hem Securities, advised investors to book partial profits if they hold allotted shares but recommended that new investors wait until prices stabilize around Rs 2,100–2,150 per share.
Overall, Waaree Energies remains a leading player in India’s renewable energy market, supported by strong industry tailwinds, innovative product development, and an ambitious expansion strategy. Investors are encouraged to monitor its stock performance closely, especially as the company continues to scale its manufacturing capabilities.
For investors, Waaree Energies offers substantial long-term potential, backed by solid growth fundamentals and a firm position in the renewable energy market. With substantial IPO interest, rapid capacity growth, and robust financials, Waaree remains a valuable investment for those willing to hold and capitalize on the company’s future in renewable energy innovation.
