Waaree Energies Limited (WEL) is India’s largest manufacturer of solar PV modules, boasting the largest aggregate installed capacity of 12 GW as of June 30, 2024. Founded in 2007, WEL has focused on solar PV module manufacturing with the mission to provide quality, cost-effective sustainable energy solutions across various markets. This commitment contributes to reducing the carbon footprint, promoting sustainable energy, and enhancing the quality of life.

IPO Overview

Waaree Energies is set to launch a Book Built Issue amounting to ₹4,321.44 Crores. This comprises a fresh issue of 239.52 lakh shares worth ₹3,600.00 Crores and an offer for sale of 48.00 lakh shares totaling ₹721.44 Crores. The subscription period for the Waaree Energies IPO opens on October 21, 2024, and closes on October 23, 2024. Allotment is expected to be finalized on or around Thursday, October 24, 2024, with shares to be listed on the BSE and NSE by approximately Monday, October 28, 2024.

Pricing and Investment Details

The share price band for the Waaree Energies IPO is set between ₹1,427 and ₹1,503 per equity share. The minimum lot size is 9 shares, meaning retail investors must invest a minimum of ₹13,527. For High-Net-Worth Individuals (HNIs), the minimum investment is 15 lots (135 shares), amounting to ₹2,02,905. At the IPO price of ₹1,503 per equity share, the market capitalization of Waaree Energies Limited will be approximately ₹43,178.66 Crore.

IPO Management

The book-running lead managers for this IPO include Axis Capital Limited, IIFL Securities Limited, Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Private Limited, SBI Capital Markets Limited, Intensive Fiscal Services Private Limited, and ITI Capital Limited. Link Intime India Private Limited is the registrar for the issue.

Grey Market Premium and Subscription Status

As of 11:53 AM on October 23, 2024, the Grey Market Premium (GMP) for Waaree Energies Limited IPO is anticipated to be ₹1,080, indicating strong investor demand. However, it's important to note that the GMP does not guarantee actual trading prices on the stock exchange, as it is influenced by supply and demand in the unregulated market.

The live subscription status reveals that the Waaree Energies IPO has been subscribed 12.68 times on its final day of subscription, indicating robust interest from investors.

Allotment Date and How to Check Status

The allotment date for the Waaree Energies IPO is scheduled for October 24, 2024. Investors can check their allotment status by following these steps:

Navigate to the IPO allotment status page.

Select Waaree Energies Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to check your allotment status.

This process allows investors to quickly ascertain their allotment status and proceed with their investments.

Objectives of the IPO

Proceeds from the fresh issue of the Waaree Energies IPO will be allocated for the following purposes:

₹27,750.00 million will be used to part-finance the establishment of a 6GW Ingot Wafer, Solar Cell, and Solar PV Module manufacturing facility in Odisha, India. The total estimated cost for this project is ₹90,499.59 million.

General corporate purposes.

Financial Performance and IPO Review

Waaree Energies Limited has shown remarkable financial growth, with revenues for Fiscal 2024, 2023, 2022, and 2021 recorded at ₹1,16,327.63 million, ₹68,603.64 million, ₹29,458.51 million, and ₹19,830.09 million, respectively. The EBITDA figures for these years were ₹18,095.77 million, ₹9,441.34 million, ₹2,025.32 million, and ₹1,257.19 million, respectively, with profits after tax of ₹12,737.71 million, ₹4,994.55 million, ₹798.71 million, and ₹457.30 million.

For the Waaree Energies IPO, the company is issuing shares with a pre-issue EPS of ₹47.86 and a post-issue EPS of ₹43.06. The pre-issue P/E ratio is 31.40x, while the post-issue P/E ratio stands at 34.90x against the industry P/E ratio of 151.13x. The company’s ROCE for FY24 is 26.29%, and RoE is 30.26%, suggesting that the IPO is fairly priced.

The Grey Market Premium (GMP) for Waaree Energies indicates potential listing gains of 72%. Considering the company’s financial performance and IPO valuation, we recommend that only risk-tolerant investors apply to the Waaree Energies Limited IPO for potential listing gains or long-term investment purposes.

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