Waaree Energies’ IPO opens on Monday. Price band, GMP among 10 things you should know before subscribing

Waaree Energies’ initial public offering (IPO) will open for subscription on Monday and close on October 23. Through the public offer, the company plans to raise nearly Rs 4,321 crore. Here are 10 things you should know about the KRN heat exchanger IPO before subscribing to the issue.

1) What is the business overview of Waaree Energies?

The company is a solar photovoltaic module manufacturer in India with an aggregate installed capacity of 12 GW and a utilized capacity of 43.37%, for the year ended March 31, 2024. It had an aggregate installed capacity of 12 GW and a used capacity of 45.01%. , as of June 2024.

2) What is the industry overview of Waaree Energies?

India’s commercial and industrial solar sector added approximately 10 GW during fiscal years 2019 and 2023, with total installed capacity as of December 2023 of approximately 25 GW. The commercial and industrial segment accounts for 70% to 80% of the country’s rooftop solar installations and is advancing the solar space at a utility scale, as well as through open access and group captive routes.

3) What is the current GMP of Waaree Energies?

According to market analysts, Waaree Energies’ current GMP is Rs 1,340, indicating a premium of 89% over the issue.

4) What is the size of Waaree Energies IPO?

The issue includes a fresh sale of shares worth Rs 3,600 crore and an offer for sale (OFS) of Rs 721 crore.

5) What is the price band for Waaree Energies IPO?

The company has set a price band of Rs 1,427 to Rs 1,503 per share, where investors can bid for 9 shares in one lot.

6) What is the structure of Waaree Energies IPO?

Around 50% of the public offering is reserved for qualified institutional buyers, 35% for retail investors and the remaining 15% for non-institutional investors.

7) How is the financial performance of Waaree Energies?

For FY24, the company’s operating income rose 69% year-on-year to Rs 11,398 crore, while profit after tax more than doubled to Rs 1,274 crore.

8) What are the objectives of Waaree Energies IPO?

The company proposes to use the funds raised from the IPO for key initiatives, including the establishment of a 6 gigawatt (GW) manufacturing facility for ingots, wafers, solar cells and photovoltaic modules in Odisha, as well as to support general corporate purposes.

9) Who are the lead book-running managers of the Waaree Energies IPO?

Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India), SBI Capital Markets, Intensive Fiscal Services and ITI Capital are the lead managers of the issue.

10) When is the share allotment and listing date of Waaree Energies IPO?

The share allotment for the IPO is likely to end on October 24 and the company is expected to list on the stock exchanges on October 28.