Waaree Energies shares double over IPO price; extend rally for 7th straight session

Defying volatility in the broader market, Waaree Energies shares have maintained an uptrend for the seventh straight session since its listing on stock exchanges on October 28, with its stock price more than doubling against the initial public offering (IPO) price. The share price of the solar panel manufacturer touched a fresh all-time high of ₹3,119.80 on Tuesday, rising 109% over the issue price of ₹1,503 apiece.

Extending its gaining streak, Waaree Energies shares opened at ₹2,984 against the previous closing price of ₹2,987.70 on the BSE. In the first two hours of trade so far, the counter gained as much as 5.3% to touch a new high of ₹3,147.15, with 2.4 lakh shares changing hands over the counter. The market capitalisation of the company increased to ₹90,402 crore.

Waaree Energies, one of India's largest solar PV module manufacturers, made its debut on the domestic bourses on October 28 after receiving an overwhelming response for its ₹4,321 crore IPO. The issue, which opened for subscription between October 21-23, was booked 79.5 times. The IPO was subscribed 215.03 times in the QIB portion, 11.26 times in the retail category, and 65.25 times in the NII space.

The Mumbai-based solar battery manufacturer raised ₹3,600 crore out of ₹4,321 crore by issuing fresh equities, while the offer for sale part was ₹721.44 crore, around 17% of the total issue size.

As per the RHP filed with SEBI, the company intends to use capital raised from fresh equities to finance the cost of establishing the 6GW of Ingot Wafer, Solar Cell and Solar PV Module manufacturing facility in Odisha. A part of the fund will be used for general corporate purposes.

Incorporated in December 1990, Waaree Energies is a manufacturer of solar PV modules with an aggregate installed capacity of 12 GW. It operates four manufacturing plants in Gujarat, India, situated in Surat, Tumb, Nandigram, and Chikhli, covering an aggregate area of 136.30 acres. In terms of customer reach, Waaree Energies served 1,381 customers in India and 31 customers abroad as of March 31, 2021.

On the financial front, the company reported a net profit of ₹401.12 crore on a total income of ₹3,496.41 crore for the first quarter ended June 30, 2024. The company has seen consistent growth in its top and bottom lines from FY23 onwards, posting a total income and net profit of ₹1,1632.76 crore  and ₹1,274.38 crore, respectively, in FY24 versus ₹6,860.36 crore and ₹500.28 crore, respectively, in FY23.

Post listing on stock exchanges, Mehta Equities in a note said that the long term investor demand would continue at the counter on the back of sector demand and expansion plans, with an opportunity to play at the largest manufacturer of solar PV modules in India, bolstered by favourable government policies and few incentive (PLI) schemes. “Hence, we recommend long term investors to “HOLD” while short term investors can look for a target anywhere between ₹2,750-2800 to book profits. Fresh accumulation can be attempted anywhere between ₹2,200-2,300 if the opportunity arises due to market scenario and profits booking attempts.”

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