Waaree Energies Rs 4,321 Crore IPO subscribed 8.78 times on day 2 strong demand from retail institutional investors

The initial public offering (IPO) of Waaree Energies Ltd, a leading solar panel manufacturer, saw robust demand on the second day of its share sale, with the issue being subscribed 8.78 times as of Tuesday. The Rs 4,321.44 crore IPO received bids for 18.51 crore shares against an offer size of 2.10 crore shares, according to data from the National Stock Exchange (NSE).

Investor interest varied across categories, with the non-institutional investor segment receiving a subscription of 24.30 times. Retail Individual Investors (RIIs) subscribed 6.36 times, while Qualified Institutional Buyers (QIBs) accounted for 1.73 times the shares on offer.

Ahead of the IPO, Waaree Energies had raised Rs 1,277 crore from anchor investors. The price band for the issue is set between Rs 1,427 and Rs 1,503 per share, and the offer is set to conclude on October 23.

The IPO consists of a fresh issue of equity shares worth Rs 3,600 crore and an Offer-For-Sale (OFS) of 48 lakh equity shares valued at Rs 721.44 crore by promoter Waaree Sustainable Finance Pvt Ltd and shareholder Chandurkar Investments Pvt Ltd.

The proceeds from the fresh issue will be directed towards establishing a 6 GW solar manufacturing facility in Odisha, including the production of ingot wafers, solar cells, and photovoltaic (PV) modules. A portion of the funds will also go towards general corporate purposes.

Waaree Energies is one of India’s key players in the solar energy sector, with an installed capacity of 12 GW as of June 2023. The company operates five manufacturing units across Gujarat and Uttar Pradesh. Post-IPO, the company’s market valuation is expected to exceed Rs 4,300 crore at the upper price band.

The book-running lead managers for the issue are Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital.