Waaree Energies shares fall 10% post listing: Should you buy, sell or hold?

Shares of Waaree Energies declined by 10 per cent from their listing price to Rs 2,294.50 as investors rushed to book profits shortly after its strong debut. The stock opened at Rs 2,550 on the BSE, reflecting a 69.66 per cent premium over its IPO allotment price of Rs 1,503, while on the NSE, it debuted at Rs 2,500, showing a 66.33 per cent premium. However, this listing performance fell short of expectations set in the grey market, where unlisted shares of Waaree Energies were trading at a premium of Rs 1,275, or an 84.83 per cent gain over the IPO allotment price, according to sources tracking grey market trends. 

 

Notably, Waaree Energies also made history with its IPO, attracting an unprecedented 97.34 lakh applications, setting a record and surpassing Bajaj Housing Finance's September 2024 IPO.

Should you buy, sell or hold?

Waaree Energies shares underperformed listing expectations, prompting market analysts to recommend partial profit booking. Nevertheless, they suggest retaining a long-term position, citing the company's strong fundamentals, reputable brand image, and positive industry tailwinds.

 

Post-listing, independent analyst Ambareesh Baliga advised against buying Waaree Energies shares, citing high valuations. He recommended that allottees book 50 per cent profits, as he does not expect the current market levels to hold. “However, one can consider buying in the future at levels closer to Rs 2,000–2,200 per share,” Baliga added.

 

On a similar note, Astha Jain, senior research analyst, Hem Securities recommended to book partial profits for investors who were allotted the Waaree Energies shares, and keep partial for long term as the company has strong fundamentals, good brand image, great infrastructure and most of all industry tailwinds are supporting the company. 

 

"Investors who want to make a fresh entry can do so at around Rs 2,100 or Rs 2,150 per share," said Jain.

Waaree Energies IPO details

The IPO of Waaree Energies included a fresh issue of 23,952,095 shares and an offer for sale of 4,800,000 shares, each with a face value of Rs 10. The company had set the price band at Rs 1,865–1,960, with a lot size of 7 shares.

 

Waaree Energies IPO was open for public subscription from Monday, October 21, 2024, to Wednesday, October 23, 2024, with a price band of Rs 1,427–1,503 and a lot size of 9 shares.

 

NSE data showed that the Waaree Energies IPO received bids for 1,60,91,70,633 shares against the 2,10,79,384 shares on offer, achieving an oversubscription of 76.34 times by the close. Qualified Institutional Buyers (QIBs) led the demand with a subscription rate of 208.63 times, followed by Non-Institutional Investors (NIIs) at 62.49 times. The portion for retail investors was subscribed 10.79 times.

 

The basis of allotment for Waaree Energies shares was finalised on Thursday, October 24, 2024.

 

About Waaree Energies

Waaree Energies is a solar energy company that manufactures solar PV modules and provides solar power systems and renewable energy solutions. With a production capacity exceeding 2 GW, it serves both domestic and international markets, exporting to over 68 countries. Waaree's product portfolio includes solar modules, solar water pumps, and solar rooftop solutions, supported by strong research and development efforts.