Waaree Energies IPO GMP tops 85% ahead of opening; details for investors

Waaree Energies IPO will open for public subscription on Monday, October 21, 2024, and conclude on October 23, 2024

Waaree Energies IPO GMP zooms: The unlisted shares of Waaree Energies, a leading green energy player, are commanding a substantial premium in the grey market ahead of its upcoming initial public offering (IPO), signalling strong market sentiment. The IPO, a book-built issue valued at Rs 4,321.44 crore, is set to open for public subscription on Monday, October 21, 2024.

According to market sources tracking grey market activities, Waaree Energies' shares are trading at a premium of Rs 1,280 over the upper price band of Rs 1,503 per share. This represents a grey market premium (GMP) of 85.16 per cent, underscoring robust demand for the IPO. GMP is often seen as an indicator of market sentiment and demand, with a positive premium suggesting potential listing gains and a favourable market response.

Waaree Energies IPO comprises a fresh issue of 23,952,095 shares and an offer for sale, with promoters and shareholders offloading up to 4,800,000 shares of a face value of Rs 10 apiece.

The company has fixed the price band at Rs 1,427-1,503 apiece and a lot size of 9 shares. Accordingly, investors can bid for a minimum of 9 shares and in multiples thereof. The minimum amount required by retail investors to bid for the Waaree Energies IPO is Rs 13,527. The minimum lot size investment for sNII is 15 lots or 135 shares, aggregating to Rs 202,905, and for bNII, it is 74 lots or 666 shares, aggregating to Rs 1,000,998.

The company intends to utilise the proceeds from the fresh issue to partly finance the cost of establishing a 6 GW Ingot Wafer, Solar Cell, and Solar PV Module manufacturing facility in Odisha, India, by investing in its wholly owned subsidiary, Sangam Solar One. Waaree Energies will use the remaining amount for general corporate purposes. 

Waaree Energies IPO will conclude the public bidding window on Wednesday, October 23, 2024. Following that, the basis of allotment for Waaree Energies shares is expected to be finalised on Thursday, October 24, 2024, and the company’s shares will be credited to demat accounts on Friday, October 25, 2024.

The three-day subscription window to bid for the Waaree Energies IPO, which opens on October 21, 2024, is likely to conclude on Wednesday, October 23, 2024. After the subscription window closes, shares of Waaree Energies are expected to list on the BSE and NSE on Monday, October 28, 2024.

Link Intime India is the registrar for the Waaree Energies IPO, while Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India), SBI Capital Markets, Intensive Fiscal Services, and ITI Capital are the book-running lead managers of the public issue.

Waaree Energies, founded in 1989, is India’s largest solar module manufacturer with a 12 GW capacity. The company offers one-stop solar solutions, including modules, inverters, batteries, and solar rooftops. Waaree has four manufacturing facilities in India, with a presence in 388+ national and 68 international locations. It’s a vertically integrated company with cell manufacturing and has acquired Indo Solar to expand its capacity to 5.4 GW.