Waaree Energies IPO Allotment Delayed: Investors Advised to Stay Calm

The allotment of shares for Waaree Energies Limited’s IPO, which was initially scheduled for October 24, 2024, has been delayed due to technical reasons. Investors are advised not to panic as the delay is expected to be resolved shortly. The final allotment status will be available soon on the registrar's website and investors can check their allotment status once the process is completed.

Waaree Energies, one of India’s largest solar PV module manufacturers, launched its Book Built Issue IPO amounting to ₹4321.44 crores. The offering consists of a fresh issue of 239.52 lakh shares worth ₹3,600 crores and an offer for sale of 48 lakh shares, totaling ₹721.44 crores. The IPO, which opened for subscription from October 21, 2024, to October 23, 2024, was highly anticipated, with a strong interest shown by both retail and institutional investors.

Key Details About Waaree Energies and the IPO

Waaree Energies Limited (WEL) commenced operations in 2007 with a focus on solar PV module manufacturing, aiming to provide cost-effective sustainable energy solutions. The company has made a significant impact on the renewable energy landscape in India and globally, with an installed capacity of 12 GW as of June 30, 2024. Their goal is to reduce the carbon footprint, helping create sustainable energy solutions for better living standards across the globe.

The Waaree Energies IPO had a price band set between ₹1,427 to ₹1,503 per equity share, with a minimum lot size of 9 shares. Retail investors were required to invest a minimum of ₹13,527, while HNIs had to invest a minimum of ₹2,02,905 for 15 lots (135 shares). The Market Capitalization of Waaree Energies Limited at an IPO price of ₹1,503 per share would amount to ₹43,178.66 crores.

The IPO was subscribed 76.34 times on its final day, showing overwhelming demand. As of October 23, 2024, retail investors, qualified institutional buyers (QIBs), and non-institutional investors (NIIs) contributed to this high subscription.

The company raised ₹425.64 crores from Anchor Investors ahead of the public subscription, setting a strong foundation for the offering. Some of the lead managers for this IPO include Axis Capital Limited, IIFL Securities Limited, Jefferies India Private Limited, and SBI Capital Markets Limited.

IPO Financial Performance and Grey Market Premium (GMP)

Financially, Waaree Energies has shown impressive growth over the years. Its revenue for Fiscal 2024 stood at ₹1,16,327.63 million, a substantial increase from ₹68,603.64 million in Fiscal 2023. Over the years, the company has steadily increased its profits and revenue. The EBITDA for Fiscal 2024 was ₹18,095.77 million, showing a strong operating performance.

The company's Profit after Tax (PAT) in Fiscal 2024 was ₹12,737.71 million, compared to ₹4,994.55 million in Fiscal 2023. This growth reflects Waaree Energies' expanding footprint in the renewable energy sector, particularly in solar PV manufacturing. The company's return on capital employed (ROCE) stood at 26.29%, while its return on equity (ROE) was 30.26% for FY24, demonstrating its efficient use of capital and shareholder funds.

The Grey Market Premium (GMP) for Waaree Energies IPO is showing a positive response with a premium of ₹1080 per share, indicating potential listing gains of 72%. The GMP, while not an official predictor of stock market performance, suggests strong demand for the company’s shares in the unregulated market. Investors should, however, exercise caution, as the GMP is not always an accurate reflection of the actual listing performance.

How to Check Waaree Energies IPO Allotment Status Online

For investors eager to know their allotment status, they can check it through the following steps once the allotment process is completed:

1. Visit the Registrar's website (Link Intime India Private Limited).
2. Select Waaree Energies Limited IPO from the dropdown list of IPOs.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to view the allotment status.

Investors can follow these steps to quickly determine whether they have received shares from the IPO allotment.

Objectives of Waaree Energies Limited IPO

The proceeds from Waaree Energies' fresh issue will be primarily utilized for the following purposes:

1. ₹27,750.00 million will be used to partially finance the cost of establishing a 6GW ingot wafer, solar cell, and solar PV module manufacturing facility in Odisha, India. This will contribute significantly to India's renewable energy push and boost Waaree’s production capabilities.
2. The rest will be used for general corporate purposes, which could include debt repayment, business expansion, or strengthening the company’s financial position.

Final Thoughts and Investment Recommendations

Given Waaree Energies' strong financials and dominant position as a solar PV module manufacturer, the IPO has attracted significant attention from both retail and institutional investors. The company's focus on renewable energy, coupled with the expansion of its production capacity, makes it a valuable player in India’s growing solar energy market.

Although the allotment process has faced delays, investors are advised to remain patient. The IPO's Grey Market Premium is promising, showing potential for listing gains. However, investors are reminded that market conditions and demand fluctuations could affect stock performance once the shares are listed on the BSE and NSE.

For risk-averse investors, the company’s long-term growth prospects in the solar energy sector make it a compelling option for a long-term portfolio. For those looking for listing gains, the positive GMP suggests a strong debut on the stock exchange.

The Upcoming IPOs in this week and coming weeks are Archit Nuwood Industries Limited, Swiggy.

The current active IPO is Afcons Infrastructure Limited, Usha Financial Services, Godavari Biorefineries Limited IPO.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.

Join our Trading with CA Abhay Telegram Channel for regular stock market trading and investment calls by CA Abhay Varn, a SEBI Registered Research Analyst. Stay updated with the latest in share market news and IPO updates by joining the Finance Saathi Telegram Channel.

Start your stock market journey today by opening a free demat account with Choice Broking FinX.