Waaree Energies IPO: GMP drops before listing; should investors worry? - India Today
30 October 2024
In Short • Listing set for October 28 amid strong investor confidence • Long-term investors advised to hold due to growth potential Waaree Energies IPO GMP dips slightly ahead of listing Despite a slight dip in the grey market premium (GMP) ahead of its stock market debut, analysts remain confident about Waaree Energies' long-term potential. advising investors not to worry. With the company set to debut on October 28, Waaree's GMP currently stands around Rs 1.320, reflecting a potential listing premium of 88% over the IPO issue price. Though down from over 100% in earlier sessions--impacted by broader market conditions--the sentiment remains strong, supported by the company's robust fundamentals and leadership in the solar energy sector.Waaree Energies saw overwhelming demand during its IPO. with an overall subscription rate of 76 times, driven primarily by institutional investors who subscribed at 208 times. The retail category saw a healthy 11.27 times subscription. In total. the IPO attracted bids worth Rs 241 lakh crore, showing high investor confidence in Waaree•s growth trajectory and market position. As India's largest manufacturer of solar photovoltaic (PV) modules, Waaree Energies currently boasts an installed capacity of 12 GW and is planning further expansions. The company intends to allocate IPO proceeds towards a 6 GW manufacturing facility in Odisha. enhancing production of solar ingots, wafers, cells, and PV modules. A 3 GW facility in the United States is also in the pipeline. underscoring Waaree's global ambitions and potential for sustained growth. Shivani Nyati. Head of Wealth at Swastika Investmart. sees the GMP dip as temporary. "Considering Waaree's solid fundamentals and growth in renewable energy. the stock offers a strong return over the issue price. Long-term investors stand to gain considerably from Waaree's leadership in this space," she said.
In Short • Listing set for October 28 amid strong investor confidence • Long-term investors advised to hold due to growth potential Waaree Energies IPO GMP dips slightly ahead of listing Despite a slight dip in the grey market premium (GMP) ahead of its stock market debut, analysts remain confident about Waaree Energies' long-term potential. advising investors not to worry. With the company set to debut on October 28, Waaree's GMP currently stands around Rs 1.320, reflecting a potential listing premium of 88% over the IPO issue price. Though down from over 100% in earlier sessions--impacted by broader market conditions--the sentiment remains strong, supported by the company's robust fundamentals and leadership in the solar energy sector.Waaree Energies saw overwhelming demand during its IPO. with an overall subscription rate of 76 times, driven primarily by institutional investors who subscribed at 208 times. The retail category saw a healthy 11.27 times subscription. In total. the IPO attracted bids worth Rs 241 lakh crore, showing high investor confidence in Waaree•s growth trajectory and market position. As India's largest manufacturer of solar photovoltaic (PV) modules, Waaree Energies currently boasts an installed capacity of 12 GW and is planning further expansions. The company intends to allocate IPO proceeds towards a 6 GW manufacturing facility in Odisha. enhancing production of solar ingots, wafers, cells, and PV modules. A 3 GW facility in the United States is also in the pipeline. underscoring Waaree's global ambitions and potential for sustained growth. Shivani Nyati. Head of Wealth at Swastika Investmart. sees the GMP dip as temporary. "Considering Waaree's solid fundamentals and growth in renewable energy. the stock offers a strong return over the issue price. Long-term investors stand to gain considerably from Waaree's leadership in this space," she said.
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