Waaree Energies shares zoomed 16% today, now up 131% from issue price

Recently-listed Waaree Energies Ltd shares on Tuesday rallied 19.52 per cent to hit a record high of Rs 3,570.95. The stock eventually settled 16.32 per cent higher at Rs 3,475.30. At this price, it has skyrocketed 131.22 per cent from its issue price of Rs 1,503. It has never closed in the red after delivering a strong listing pop on October 28.

The counter saw high trading volume on BSE today as around 8.33 lakh shares changed hands. The figure was higher than the two-week average volume of 7.81 lakh shares. Turnover on the counter came at Rs 271.32 crore, commanding a market capitalisation (m-cap) of Rs 99,839.53 crore.

Bourses BSE and NSE have put the securities of Waaree Energies under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

"The stock is in the momentum zone and has seen a stellar rally. Given the current emphasis on green energy, solar energy and alternative fuels, Waaree Energies' stock is going up. Market participants with a high-risk appetite should only consider entering at current levels. For serious investments, one should wait for the quarterly results," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.

"Waaree Energies continued its remarkable performance in the stock market, defying broader market corrections. The stock is currently exhibiting a 'higher top, higher bottom' formation, which signals a continued positive trajectory. The price range of Rs 3,800-4,000 is anticipated as a potential target, with minor support found at Rs 2,800-2,850 levels," said Ameya Ranadive CMT CFTe, Sr Technical Analyst at StoxBox.

In contrast, Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, suggested investors to book profit at current levels. "The stock has rallied from its issue price. Market participants should consider booking profit at the current market price," Singh stated.

The initial public offering (IPO) of Waaree Energies was sold between October 21 and October 23. The Mumbai-based firm 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.

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 IPO, while Link Intime India served as the registrar.

Incorporated in December 1990, Waaree Energies 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.