Waaree Energies, one of the leading players in the solar energy sector, has had a fantastic run for its ₹4,321 crore IPO that has witnessed full-fledged oversubscription of 4.52 times on the second day of bidding, October 22. Some investors showed an interest in placing bids for as many as 9.5 crore shares, much higher than what was put up for them to bid for – 2.1 crore shares, data from the exchanges revealed.

Interest in Waaree Energies is coming at a time when the world is thirsty for more renewable energy solutions. For instance, June 30, 2023, saw it boasting an impressive capacity of 12 GW in photovoltaic module manufacturing. Grey market also went into a buzz as premium went past 100 percent ahead of the IPO on October 21.

The issue received huge demand from non-institutional investors, who subscribed to nearly 12 times their portion. The subscription from the retail investor segment turned in 4 times. The employee quota was subscribed to at 1.96 times. For the qualified institutional buyers, the pick-up stands at 9 percent of the reserved shares. This is seen to vary across segments.

The IPO includes a new equity issuance of ₹3,600 crore, and also an OFS offer for 48 lakh shares by promoters and existing shareholders aggregating at ₹721.44 crore at the upper price band. Thus, taking the issue size to ₹4,321.44 crore, the market capitalisation of Waaree Energies would cross ₹43,179 once listing occurs.

The proceeds from fresh equity issue are proposed to be utilized to set up a 6 GW facility at Odisha for manufacturing ingot wafers, solar cells, and PV modules. General corporate expenses provision is also there, signifying the intent of Waaree Energies to expand its manufacturing capacity.

With manufacturing units across India, such as in Surat and Noida, Waaree Energies is well-equipped to ride the wave of growth in demand for solar energy solutions in India.

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