2024 is proving to be a great year for the Indian IPO market. At the same time, many large companies issued stocks one after another, bringing huge profits to investors. In this sequence, leading energy industry company Waaree Energies will be listed on the stock market today. The offering has received an overwhelming response from investors and has been making waves in the gray market since the subscription period. Although its premium has declined, it still shows that the company’s shares were highly profitable on the day of listing.
Gray market premiums plummet
The Vari Energies IPO will hit the stock market today, Monday. But the news that surprised investors was that the gray market premium for the IPO fell. At the time of IPO launch, the premium of Waaree Energies shares in the gray market was Rs 1,590, so the premium for its listing in the market is expected to be over 100%. That is, investors’ funds were expected to double with the listing, only to decline after the offering ended.
Shares of Waari Energies were trading at a premium of Rs 1,275 in the gray market at around 6 am on Monday, October 28. Accordingly, its listing price is still 2,778 rupees, a premium of 84.83%.
Estimated earnings per share
Now let’s talk about it, if the company’s stocks are listed according to this estimate, how much will investors benefit? Let us tell you that as per the Waaree Energies IPO, the stock price range was fixed at Rs 1,427 to Rs 1,503. Now, if we go by the upper price band, then investors will get a profit of Rs 1,275 per share due to listing at a premium of 84.83%.
The company has fixed the lot size at 9 shares, so investors have to invest at least Rs 13,527. In this case, the investor who bids for one lot will make an immediate profit of Rs 11,475 on the day of listing, while his investment in the lot will be Rs 25,002.
IPO open from October 21st to 23rd
Vaari Energies’ IPO opened for subscription on October 21, with bidding closing on October 23. The total size of this IPO is 4,321.44 billion rupees. Accordingly, the company issued 240 million rupees worth of shares through a fresh issue, valued at 3600 million rupees. A total of 4.8 million equity shares worth Rs 721.44 crore were issued through OFS. As of the last trading day, investors competed to bid, and the transaction volume was 79.44 times. The retail subscription ratio for this IPO was 11.27 times. The QIB category bookings were 215.03 and the NII category 65.25 bookings.
(Note- Always take advice from market experts before making any kind of investment in the stock market or IPO market.)
