Waaree Energies, a key player in the solar energy sector, launched its Rs 4,321 crore Initial Public Offering (IPO) on October 21, and it saw a great response. Within the first two hours of opening, the IPO was fully subscribed, receiving bids for 2.12 crore shares compared to the 2.1 crore shares available, according to data from the exchange.
Waaree Energies specializes in manufacturing solar panels, with a total capacity of 12 GW (gigawatts) as of June 30, 2023. The company has generated a lot of excitement in the market, especially with its grey market premium reaching 100% before the IPO.
Non-institutional investors played a big role, buying double the shares allocated to them. Retail investors were also eager, with their portion oversubscribed by 117%, while employees subscribed to 53% of their quota. Qualified Institutional Buyers (QIBs), however, have not shown as much interest yet.
The IPO is composed of fresh equity shares worth Rs 3,600 crore and an OFS of 48 lakh shares worth Rs 721.44 crore, thereby having a total issue size of Rs 4,321.44 crore.
Proceeds that have been raised would be utilised by Waaree Energies to establish a new 6 GW manufacturing facility in Odisha, manufacturing wafers, cells and panels, which are important building blocks to solar panels. The remaining proceeds have been indicated to be for general company purposes. Waaree currently operates five factories in the country located at Surat, Tumb, Nandigram, and Chikhli in Gujarat and one at Noida in Uttar Pradesh.
After the IPO, the company’s total market value is expected to be over Rs 43,179 crore.
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Source: Moneycontrol
News Desk
