Shares of Waaree Energies are set to make their Dalal Street debut on Monday and investors may see some fireworks at Dalal Street ahead of Diwali. The stock is likely headed for a bumper listing pop for the investors but investors shall keep their expectations low amid the rising selling pressure in the broader markets.
Shares of Waaree have been signaling for a strong listing pop to the investors. Ahead of its listing, grey market premium (GMP) for the Waaree Energies shares were commanding a premium of Rs 1,300-1,350 in the unofficial market, suggesting a listing pop of around 90 per cent to the investors. However, GMP stood at Rs 1500-1,550 when the issue was closed for bidding.
One can expect a strong listing for Waaree Energies as signaled by its impressive grey market premium. The stock is likely to list around Rs 3,000 as the issue received robust demand, with an overall subscription of 79.44 times, indicating strong investor interest, said Shivani Nyati, Head of Wealth at Swastika Investmart.
"For those who receive an allotment, holding the stock for the long term could be a good strategy, considering Waaree Energies’ growth potential in the renewable energy space. However, investors with a short-term view may consider booking partial profits on listing day, especially if the stock sees a significant surge," she added.
The IPO of Waaree Energies was sold 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. It raised Rs 4,321.44 crore from its IPO, which included a fresh share sale of Rs 3,600 crore and offer-for-sale (OFS) of up to 48 lakh equity shares.
The issue was overall subscribed a solid 76.34 times, thanks to the strong interest from qualified institutional bidders (QIBs), whose quota was booked a stellar 208.63 times. The allocation for non-institutional investors (NIIs) was booked 62.49 times. The portions retail investors and employees were subscribed 10.79 times and 5.17 times, respectively during the bidding process.
Waaree Energies drew a significant interest for its IPO, with a subscription rate exceeding 79 times. The company is set for a robust stock market debut on Monday, said Sagar Shetty, Research Analyst at StoxBox. "We suggest that investors who have been allotted shares consider maintaining their positions with a medium to long-term outlook," he said.
Waaree Energies, incorporated in December 1990, is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 12 GW. Its product portfolio includes solar energy products consisting of the PV modules such as multicrystalline modules; Monocrystalline modules; and TopCon modules.
Brokerages had a positive view on the issue and suggested subscribing to it. Axis Capital, Jefferies India, IIFL Securities, Nomura Financial Advisory & Securities (India), SBI Capital Markets, Intensive Fiscal Services and ITI Capital were the book running lead managers of the Waaree Energies IPO, while Link Intime India served as the registrar for the issue.