The initial public offering (IPO) of Waaree Energies Ltd, a prominent solar panel manufacturer, witnessed remarkable interest, with subscriptions reaching 76.34 times its offered size by the end of the sale on Wednesday. This surge in demand was largely driven by robust participation from institutional investors.
The IPO, valued at ₹4,321.44 crore, received bids for over 1.60 billion shares, significantly surpassing the 2.11 million shares available for sale, according to data from the National Stock Exchange (NSE).
In particular, the segment allocated for Qualified Institutional Buyers (QIBs) saw an impressive subscription rate of 208.63 times. Non-institutional investors also showed strong interest, with their portion subscribed 62.48 times, while Retail Individual Investors (RIIs) contributed with a subscription rate of 10.79 times.
This IPO has garnered one of the highest application numbers on record, totaling approximately 973,400 applications, leading to an overwhelming subscription amount of over ₹2.41 lakh crore. On Friday, Waaree Energies announced that it successfully raised ₹1,277 crore from anchor investors.
The price band for the IPO is set between ₹1,427 and ₹1,503 per share. The offering consists of a fresh issue of equity shares worth ₹3,600 crore and an Offer for Sale (OFS) of 4.8 million equity shares valued at ₹721.44 crore, from promoters and existing shareholders, totaling ₹4,321.44 crore.
Proceeds from the fresh issue are earmarked for establishing a 6 GW (gigawatt) manufacturing facility for ingots, wafers, solar cells, and solar PV modules in Odisha. Additionally, some funds will be allocated for general corporate purposes.
Post-issue, Waaree Energies’ market valuation is projected to exceed ₹4,300 crore at the upper end of the price range. As a key player in India’s solar energy sector, Waaree Energies has an installed capacity of 12 GW as of June 30, 2023, with five manufacturing facilities located across Gujarat and Uttar Pradesh.
The book-running lead managers for this significant issue include Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India) Private Ltd, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital.
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