Waaree Energies’ IPO may cause a stir. This IPO was subscribed a total of 79 times, while in the retail category this IPO was subscribed 11.27 times. Bookings were made 215.03 times in the QIB category and 65.25 times in the NII category. The main reason for this IPO’s high profile is its premium in the gray market, which shows returns of almost 100 percent upon listing.
This IPO is making waves in the gray market, indicating earnings of around Rs 1,500 per share on the day of listing. While the pricing estimate is Rs 2,983 per share, almost 100% higher than the price band. This means its shares can double investors’ money by going public. This IPO will go public on October 28. In such a situation, the question also arises: will it make huge profits like its subsidiary Waaree Renewables Technologies?
66000 percent return in 5 years
Waaree Renewables is an SME stock listed on the BSE platform. This stock has given returns of 66,000% to investors in the last five years. While over the last year Vari Renewables shares have returned 500 percent. This company, Vari Renewables, which deals in the solar EPC sector, is working towards achieving India’s ambitious renewable energy goals, especially in the field of solar energy. Founded in 1999, this company mainly focuses on power generation through solar energy. Waaree Renewables shares were trading 2.50% lower at Rs 1,490 on Friday.
Will its parent company, Waaree Energies, also do wonders?
This company has been in the news since the IPO of Waaree Energies. It has achieved a record by receiving the highest number of applications. According to the indications received in the gray market, it can give multibagger returns when listed on the stock market. At the same time, experts are also optimistic about this IPO in the long term, because in the field of renewable energy it is rapidly emerging globally and remains a leading player.
Waari Energies is a market-leading player in its sector and its financial position is also quite strong. This company is also India’s largest exporter in terms of solar modules. At the national level, this company has a 44% participation in exports. The company has orders of 13.3 gW, more than 6 times compared to FY 2021. This company will use the funds raised in the IPO to install 6 gW in Odisha. This will help create 20.9 GW of capacity by FY27.
The company’s debt to equity is 0.08 times, much lower than other companies in the same sector, Vikram Solar, 1.8 times, Websol Energy, 1.7 times, and Premier Energies, 2.3 times. The company’s three-year revenue CAGR is 80 percent. While the EBITDA CAGR is 154 percent in the same period. In this situation, the company can also grow in the future.
(Note: Before investing in any stock, definitely seek the help of a financial advisor.)
