The Waaree Energies IPO has made history by achieving a record 97.34 lakh applications, surpassing major IPOs like Tata Technologies, Bajaj Housing Finance, and even LIC. This overwhelming response has positioned it as one of the most successful public offerings in India’s stock market history. The IPO, which was open from October 21 to October 23, 2024, was subscribed over 76 times, with Qualified Institutional Buyers (QIBs) bidding at an impressive 208 times the shares reserved for them. This massive interest reflects strong confidence in the company’s future growth potential, as it continues to solidify its position in the renewable energy sector.
Details of the Waaree Energies IPO
Waaree Energies, a leading solar photovoltaic (PV) module manufacturer in India, launched this IPO to raise ₹4,321.44 crores. The issue consisted of a fresh issue of ₹3,600 crores and an offer for sale (OFS) of 48 lakh equity shares. Priced between ₹1,427 and ₹1,503 per share, the IPO saw retail investors given a 35% allocation, with the minimum lot size set at nine shares.
The company’s business is crucial to India’s growing renewable energy sector, as it operates five manufacturing plants with a total installed capacity of 12 GW. Waaree Energies also holds an extensive order backlog of 16.66 GW of PV modules as of June 30, 2024. This includes significant domestic and international orders, with clients in countries like the United States, Canada, Italy, and Hong Kong, among others. Notably, the company has established partnerships with prominent domestic clients such as ReNew Power and Hero Solar.
Financial Performance and Growth Outlook
Waaree Energies has experienced significant financial growth in recent years. Between FY 2022 and FY 2024, the company saw its revenue soar from ₹2,854 crores to ₹11,397 crores, reflecting a substantial jump in demand for solar modules. The net profit after tax (PAT) increased from ₹79.65 crores in FY 2022 to ₹1,274 crores in FY 2024, underscoring its strong profitability. The company’s margins also improved significantly, with EBITDA rising to 15.56% in FY 2024 from 6.34% two years earlier.
What Led to Record-Breaking Subscriptions?
Several factors contributed to the record-breaking response to Waaree Energies’ IPO. First, the growing importance of renewable energy and the global shift towards sustainable practices make solar energy companies like Waaree attractive to investors. Additionally, Waaree’s dominance in the Indian solar manufacturing sector, combined with a robust order book, signals a promising growth trajectory.
Moreover, the IPO was supported by several high-profile book-running lead managers, including Axis Capital, SBI Capital Markets, and Jefferies India, among others, which helped bolster investor confidence. The high demand from QIBs further highlighted institutional investors’ strong belief in the company’s long-term prospects.
Future Prospects
With India’s focus on renewable energy to combat climate change, Waaree Energies is well-positioned for future growth. The company’s diversified product portfolio, which includes advanced solar PV modules like monocrystalline and bifacial modules, caters to both domestic and international markets. As India aims to achieve its ambitious solar energy targets, Waaree is likely to play a pivotal role, making it an attractive prospect for investors looking for sustainable and growth-oriented opportunities.
In conclusion, the Waaree Energies IPO’s resounding success reflects both the strength of the company’s fundamentals and the market’s growing appetite for renewable energy stocks. Investors have shown unprecedented interest in the IPO, positioning Waaree Energies as a leader in India’s solar energy sector.
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