Waaree Energies Limited, a leader in the solar energy space, is all set to launch its Initial Public Offering (IPO) from October 21, 2024 to October 23, 2024. The company aims to raise ₹4,321.44 crore through this IPO, which is a mix of fresh equity shares and an offer for sale (OFS). Here's everything you need to know about this highly anticipated public offering.
Key Dates and IPO Details
IPO Open Date: October 21, 2024
IPO Close Date: October 23, 2024
IPO Price Band: ₹1,427 to ₹1,503 per share
Lot Size: 9 shares
Allotment Date: October 24, 2024
Listing Date: October 28, 2024 (on BSE and NSE)
Total Issue Size: ₹4,321.44 crore
Fresh Issue Size: ₹3,600 crore
Offer for Sale Size: ₹721.44 crore
The IPO will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), with a strong interest in the grey market where the shares are trading at a premium of ₹1,426 to ₹1,565, reflecting bullish investor sentiment.
Financial Performance
Waaree Energies' financials reflect its position as a key player in India's renewable energy sector. From FY2022 to FY2024, the company has demonstrated impressive growth:
Revenue: Increased from ₹2,854.3 crore in FY2022 to ₹11,397.6 crore in FY2024.
EBITDA: Grew from ₹111 crore to ₹1,574.4 crore, with margins expanding from 3.9% to 13.8%.
Net Profit: Jumped from ₹79.7 crore in FY2022 to ₹1,274.4 crore in FY2024, showcasing a 154.8% year-on-year increase.
Waaree Energies has a strong order book of 16.66 GW, including 3.75 GW from its U.S. subsidiary, Waaree Solar Americas Inc. The proceeds from the IPO will be used to finance a new 6 GW solar module facility in Odisha, projected to cost ₹9,050 crore. ₹2,775 crore from the IPO proceeds will be used over the next three fiscal years to fund this expansion.
IPO Allocation
Qualified Institutional Buyers (QIBs): 50% of the net issue
Non-Institutional Investors (NIIs): 15% of the net issue
Retail Investors: 35% of the net issue
Risks and Outlook
Waaree Energies' dominance in the solar module manufacturing industry, coupled with its strong financials and aggressive expansion plans, makes it an attractive investment option. However, there are risks associated with its reliance on the U.S. market and Chinese raw materials, which could affect supply chains and profitability. Nonetheless, the company’s strategic focus on the growing renewable energy sector, backed by India’s push for solar energy, presents a promising outlook for long-term investors.
References
1. Livemint, "Waaree Energies IPO: GMP, date, price, other details in 10 points as upcoming IPO opens next week
2. Chittorgarh, "Waaree Energies Limited IPO (Waaree Energies IPO) Detail"
3. Business Today, "Waaree Energies IPO: GMP, date, price, risks and outlook. All the details"
