The year 2024 has proven to be a great year for the Indian IPO market. Meanwhile, many large companies launched their issues and made huge profits for investors. In this sequence, today the IPO of the leading company in the energy sector, Waaree Energies, will be listed on the stock market. This issue received an overwhelming response from investors and has been making waves in the gray market since the subscription period. Although its premium has already been reduced, the company’s shares are still indicating huge gains on the trading day.
The premium was greatly reduced in the gray market
Vari Energies IPO will be listed on the stock market today i.e. Monday. But the surprising news for investors is that the gray market premium of this IPO has decreased. When the IPO was launched, Waaree Energies shares were trading at a premium of Rs 1,590 in the gray market and consequently, its market listing was expected to command a premium of over 100 per cent. That is, investors’ money was expected to double with the listing, but decreased after the issue closed.
On Monday, October 28, around 6 am, shares of Waari Energies were trading at a premium of Rs 1,275 in the gray market. Based on this, its stock can still be quoted at Rs 2,778 at a premium of 84.83 percent.
Estimated earnings per share
Now let’s talk, if the company’s shares trade on the stock market based on this estimate, how much will investors benefit? So, let us tell you that under the IPO of Waaree Energies, the price band of the shares was fixed between Rs 1427 and Rs 1503. Now if we calculate according to the upper price band, due to the listing at a premium of the 84.83 percent, investors will earn a profit of Rs 1,275 on each share.
The company had fixed the lot size at 9 shares and accordingly investors had to invest at least Rs 13,527. In such a situation, the investor who bids for one lot will make a direct profit of Rs 11,475 on the day of its listing and the amount invested by him for one lot will be Rs 25,002.
The IPO was open from October 21 to 23.
Vaari Energies’ IPO opened for subscription on October 21 and bids were made until October 23. The total size of this IPO was Rs 4,321.44 crore. Under this, the company had issued 2.4 million shares through fresh issue, the value of which was Rs 3,600 crore. A total of 48 lakh shares worth Rs 721.44 crore were issued through OFS. Until the last day, investors made huge bids for this IPO and filled it 79.44 times. This IPO was subscribed 11.27 times in the retail category. Bookings were made 215.03 times in the QIB category and 65.25 times in the NII category.
(Note: Before making any kind of investment in the stock market or IPO market, definitely consult your market experts.)
