Waaree Energies’ IPO is likely to cause a stir. This IPO was subscribed 79 times in total, and the retail IPO was subscribed 11.27 times. Bookings in the QIB category were 215.03 and bookings in the NII category were 65.25. The main reason why this IPO has attracted much attention is its gray market premium, and its post-listing return rate is close to 100%.
The IPO made waves in the gray market, with earnings per share of about Rs 1,500 on the day of listing. The estimated listing price is Rs 2,983 per share, which is almost 100% higher than the price range. This means that its shares can double investors’ money after listing. The IPO will be launched on the stock market on October 28. In this case, a question also arises: Will it make huge profits like its subsidiary Waaree Renewables Technologies?
5-year return rate of 66,000%
Waaree Renewables is a small and medium-sized enterprise stock listed on the BSE platform. The stock has returned investors 66,000% over the past five years. Over the past year, Vari Renewables’ stock has returned 500%. Vari Renewables specializes in the solar EPC field and is committed to achieving India’s ambitious renewable energy goals, especially in the solar field. The company was founded in 1999 and focuses on solar power generation. Shares of Waaree Renewables fell 2.50 per cent to Rs 1,490 on Friday.
Will its parent company, Waaree Energies, also perform miracles?
Waaree Energies has been in the news since its initial public offering. It set a record for the largest number of applications received. Based on indications received by the gray market, it could bring huge returns when listed. At the same time, experts are also optimistic about the IPO in the long term because it has rapidly emerged globally in the renewable energy field and remains a leader.
Waari Energies is the market leader in the industry and its financial position is quite strong. The company is also India’s largest exporter of solar modules. Domestically, the company’s export share is 44%. The company’s order book stands at 13.3 GW, more than 6 times higher than in fiscal 2021. The funds raised from the IPO will be used by the company to set up 6GW in Odisha. This will help create 20.9 GW of capacity by FY27.
The company’s debt-to-equity ratio of 0.08 times is much lower than other companies in the same industry, with Vikram Solar at 1.8 times, Websol Energy at 1.7 times and Premier Energies at 2.3 times. The company’s three-year revenue compound annual growth rate is 80%. The compound annual growth rate of EBITDA during the same period was 154%. In this case, the company can also achieve growth in the future.
(Note – Always seek help from a financial advisor before investing in any stock.)
