Waaree Energies Sees Volatile Debut as Shares Decline After Strong IPO Performance
Shares of Waaree Energies experienced a notable decline of 10% from their listing price, closing at Rs 2,294.50 as investors swiftly moved to book profits following the company’s strong initial public offering (IPO). The stock made its debut on the Bombay Stock Exchange (BSE) at Rs 2,550, reflecting a significant premium of 69.66% over its IPO allotment price of Rs 1,503. Similarly, on the National Stock Exchange (NSE), Waaree Energies opened at Rs 2,500, marking a 66.33% gain.
Despite this impressive debut, the stock’s performance fell short of the expectations set in the grey market, where unlisted shares of Waaree Energies were trading at a premium of Rs 1,275, indicating an 84.83% gain over the IPO allotment price. This disparity highlighted a trend where initial excitement often leads to profit-taking, particularly in a volatile market.
One of the standout features of Waaree Energies’ IPO was its record-breaking demand, attracting an unprecedented 97.34 lakh applications. This number surpassed the previous record held by Bajaj Housing Finance’s IPO in September 2024, indicating strong investor interest in the renewable energy sector, particularly in companies that are well-positioned to benefit from the growing focus on sustainability and clean energy.
Should You Buy, Sell, or Hold?
The stock’s post-listing performance prompted market analysts to offer varied recommendations regarding Waaree Energies shares. Many analysts noted that, despite the initial excitement, the shares underperformed relative to listing expectations. As a result, they recommended partial profit booking for current investors while also suggesting that they retain a long-term position in the stock. This dual approach reflects a cautious optimism, given the company’s solid fundamentals and favorable industry dynamics.
Independent analyst Ambareesh Baliga expressed reservations about purchasing Waaree Energies shares at the current valuation. He advised investors to book 50% of their profits, suggesting that the current market levels might not be sustainable. “However, one can consider buying in the future at levels closer to Rs 2,000–2,200 per share,” Baliga noted, indicating potential opportunities for investors who are willing to wait for more favorable pricing.
Similarly, Astha Jain, a senior research analyst at Hem Securities, recommended that investors who were allotted Waaree Energies shares consider booking partial profits while retaining a portion for the long term. Jain highlighted the company’s strong fundamentals, solid brand reputation, robust infrastructure, and favorable industry tailwinds as reasons for optimism. “Investors looking to enter the market anew can do so at around Rs 2,100 or Rs 2,150 per share,” she added, pointing out the potential for future growth.
Waaree Energies IPO Details
The IPO of Waaree Energies was comprised of a fresh issue of 23,952,095 shares and an offer for sale of 4,800,000 shares, with each share having a face value of Rs 10. The company had established a price band between Rs 1,865 and Rs 1,960, with a minimum lot size set at 7 shares. The public subscription period ran from October 21 to October 23, 2024, with a revised price band of Rs 1,427 to Rs 1,503 for investors.
The IPO’s reception was overwhelmingly positive, as evidenced by the subscription numbers reported by the NSE. The Waaree Energies IPO received bids for a staggering 1,60,91,70,633 shares against the 2,10,79,384 shares available, resulting in an oversubscription of 76.34 times by the close of the offering. Qualified Institutional Buyers (QIBs) led the demand, achieving a subscription rate of 208.63 times, followed by Non-Institutional Investors (NIIs) at 62.49 times. Retail investors also showed robust interest, with their portion subscribed 10.79 times.
The basis of allotment for Waaree Energies shares was finalized on October 24, 2024, marking a significant milestone for the company and its investors. This level of interest and investment reflects growing confidence in the renewable energy sector as more investors recognize the importance of sustainable solutions amid rising global concerns over climate change.
