 "Waaree Energies extends rally after strong debut; zooms 81% over IPO price")
Waaree Energies (Waaree) share price hit a new high of Rs 2,718.75 as it surged 12 per cent on the BSE in Thursday's intraday trade amid heavy volumes. The stock price of one of the leading Indian renewable energy companies, specialising in solar energy solutions, has zoomed 81 per cent against its issue price of Rs 1,503 per share.
Waaree Energies' market capitalisation touched Rs 78,105 crore in the intraday trade today.
Waaree, on October 28, made a strong market debut with its shares getting listed at Rs 2,550, a 70 per cent premium over its issue price. The stock finally settled 55 per cent higher at Rs 2,336.80 per share on the BSE exchange.
At 01:16 PM, Waaree was trading 8 per cent higher at Rs 2,635.35 as compared to 0.64 per cent decline in the BSE Sensex. A combined 8.8 million equity shares had changed hands on the NSE and BSE till the time of writing of this report.
Waaree is India's largest manufacturer and exporter of solar modules having a capacity of 13.3 gigawatt (Gw), which grew 6-times in just three years from 2 Gw in FY21. It has a market share of 21 per cent in India and a healthy 44 per cent share in exports of solar modules from India. The company raised Rs 4,321 crore via initial public offer (IPO). The IPO proceeds will be utilised to partly finance its 6 Gw ingot, wafer, solar cell and solar PV module manufacturing facility in Odisha.
Waaree is setting up a 11.4 Gw integrated manufacturing facility, of which 5.4 Gw solar cell will be operational by Q3 FY25 at Chikhli in Gujarat and a 6 Gw fully integrated manufacturing facility in Odisha to produce ingots, wafers, and solar cells by FY27. This state-of-the-art facility will produce solar cells and modules utilising advanced passenger vehicle (PV) technologies designed for high-efficiency, large-sized PV silicon wafers. The company has recently been awarded orders worth Rs 1,900 crore under the Production Linked Incentive (PLI) scheme.
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"With solar energy emerging as a key global theme in the transition towards renewable energy, the company is poised to capitalise on the growing opportunity led by its strong track record, leading market share, strong financials, and continued focus on innovation and sustainability," analysts at InCred Equities had said their IPO note.
Government initiatives, such as PM-KUSUM, Rooftop Phase-II, and Atmanirbhar Bharat, highlight India's commitment to promoting green energy. Supportive policies, including subsidies, PLI scheme, and customs duty exemption on solar components are actively attracting investment and propelling growth in the renewable energy sector, the brokerage firm said.
With Waaree being a market leader in the solar module segment along with positive factors like growing global demand for solar energy, strong government focus on renewable sector and impetus on China Plus One Policy, Motilal Oswal Financial Services believes the company is favourably positioned.
Exports contributed 58 per cent of Waaree's revenue in FY24, out of which 57 per cent was to the US. Waaree benefits from the tariffs that were imposed by the US on the import of Chinese solar modules in FY22 for a period of 4 years. With its upcoming facility in the US in FY25, it will have improved access to existing and new customers there and will also be shielded from the risk of any future tariffs that may be imposed by the US, the brokerage firm said in its IPO note.