Waaree Energies IPO, which saw a bumper response from investors during the bidding process, has now left investors wondering what are the odds of getting the allotment of shares after a stellar bidding for the issue. The company has pipped Bajaj Housing Finance in terms of number of applications but remains behind it in terms of fetching the application amount.
The IPO of Waaree Energies received 97.33 lakh applicants at the upper end of price band, which is the highest ever number of any Indian IPO so far. On the other hand, the recently concluded Bajaj Housing Finance IPO had received bids for 89.07 lakh applications at the upper end of its price band.
Net of the Rs 1,276.9 anchor book, the IPO of Waaree Energies fetched bids worth Rs 2.41 lakh crore for its Rs 3,044.51 crore offering as the issue was overall booked 76.34 times. On the other hand, Bajaj Housing Finance had attracted bids for Rs 3.24 lakh crore for the issue, which was overall booked 63.61 times.]
On an individual basis, the quota for qualified institutional bidders (QIBs) was booked 208.64 times, fetching bids worth Rs 1.83 lakh crore. The allocation for non-institutional investors (NIIs) was booked 62.49 times, attracting bids for Rs 41,660 crore for their allocation. Retail portion was booked 10.79 times, getting bids for Rs 16,788 crore for their allocation. Even employees of the company made bids for Rs 354.15 crore, or 5.17 times for their 65-crore reservation.
The bumper bidding for the IPO has left investors guessing and calculating the odds for getting the allotment of shares for the Waaree Energies IPO. Market participants interacting with Business Today said that prima facie retail investors have the best chance of getting the allotment.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities said that Waaree Energies saw a solid response from all the categories of investors on the back of rising charm of the solar space, governments push for renewable energy and sound business model of the company. Retailer investors, in this issue, have the best chance of allotment of shares.
"Waaree Energies IPO attracting subscriptions worth over Rs 2.41 lakh crore. The issue garnered strong interest across investment categories due to the optimism surrounding the listing and favourable price momentum," said VLA Ambala, co-founder at Stock Market Today.
She expects strong listing gains from the investors, which may push the valuations for the solar PV modules manufacturer’s higher and trigger some profit-booking among investors. The Sebi registered research analyst recommended investors withdraw the capital they invested in the IPO, if they get allotment and keep the remaining funds for long-term returns. Here is the tentative calculation for the allotment odds:
Big HNI category: 1 investors out of 13 investors will get 135 shares (Probability: 7.69 per cent)
Small HNI category: 2 investors out of 95 investors will get 135 shares (Probability: 2.10 per cent)
Retail category: 2 investors out of 15 investors will get 9 shares. (Probability: 13.33 per cent)
The IPO of Waaree Energies was open for bidding between October 21 and October 23. The Mumbai-based company had offered its shares in the fixed price band of Rs 1,427-1,503 per share with a lot size of nine shares. The company raised Rs 4321.44 crore via its primary offering, which included a fresh share sale of Rs 3,600 crore and an offer for sale (OFS) of 48 lakh equity shares.
Grey market premium (GMP) of Waaree Energies has seen a sharp upsurge following a bumper response from investors, signaling it as another multibagger in making. Last heard, the company was commanding a premium of Rs 1,600 in the unofficial market, indicating a listing of 103 per cent for the investors.