Waaree Energies’ Rs 4,321-crore initial public offer (IPO) was off to a robust start on October 21, the first day of bidding, after the issue was fully subscribed within just two hours of opening. The public offer drew bids for 2.12 crore shares as against 2.1 crore shares on offer, showed exchange data.
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The company is a major player in the solar energy industry, focused on PV module manufacturing with an aggregate installed capacity of 12 GW as of June 30, 2023. There is also much buzz around the Waaree Energies’ grey market premium, which crossed the 100 percent premium ahead of its initial share sale on October 21.
As per NSE data, non-institutional investors were at the forefront, buying 2 times the portion reserved for them. The retail investor portion was booked 117 percent while the employee quota was subscribed 53 percent. QIBs or Qualified Institutional Buyers were yet to warm to the offer.
The IPO consists of a fresh issue of equity shares worth Rs 3,600 crore and an offer-for-sale (OFS) of 48 lakh shares, valued at Rs 721.44 crore, at the upper end of the price band, from promoters and existing shareholders. The total issue size amounts to Rs 4,321.44 crore.
At the upper end of the price band, the company’s market valuation is estimated at over Rs 43,179 crore post-issue.
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The proceeds from the fresh issue will primarily be used to establish a 6 GW manufacturing facility in Odisha, which will produce ingot wafers, solar cells, and solar PV modules. A portion of the funds will also be allocated for general corporate purposes.
The company currently operates five manufacturing facilities across India: Surat, Tumb, Nandigram, and Chikhli in Gujarat, and the IndoSolar facility in Noida, Uttar Pradesh.
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