Waaree Energies stocks listed at 70% premium: Should you buy?
Waaree Energies Ltd made a strong debut on the stock market today, with its shares listing at ₹2,500 per stock on the National Stock Exchange (NSE). This is a massive 66.33% premium over its issue price of ₹1,503. It is currently trading at ₹2,376. On the Bombay Stock Exchange (BSE), the company's stocks opened even higher at ₹2,550/share, a nearly 70% jump from its initial public offering (IPO) price.
IPO garners overwhelming response
Ahead of listing, Waaree Energies's shares were in high demand in the gray market, with a gray market premium (GMP) of almost 85% over the issue price. The firm's ₹4,321 crore IPO received an overwhelming response from investors with ₹2.41 lakh crore worth of bids. The total subscription stood at 76.34 times by day three end, driven by institutional and non-institutional investors with 208.63 times and 62.48 times subscriptions respectively.
Waaree Energies sets new record in IPO history
Waaree Energies has broken the record for the most number of applications in IPO history, beating the previous record of Bajaj Housing Finance, Tata Technologies and LIC. At the upper price band, the firm will have a post-listing market cap of ₹43,179 crore. Analysts remain bullish on Waaree Energies's growth prospects, given its leadership in photovoltaic (PV) module manufacturing and aggressive global expansion plans.
Waaree Energies to use IPO proceeds for expansion
Waaree Energies plans to utilize the funds raised from the IPO for key initiatives, such as establishing a 6GW manufacturing facility for wafers, ingots, solar cells and PV modules in Odisha. The company also plans to use some of these funds for general corporate purposes. Waaree Energies currently operates five manufacturing facilities across India, and commands a whopping 44% market share in the country's solar module export market.
