Waaree Energies, a leading solar panel manufacturer, made a strong stock market debut with a nearly 70% premium over its issue price, reflecting investor confidence in India’s booming renewable energy sector.
Listing at Rs 2,550 on the Bombay Stock Exchange (BSE), the shares marked a 69.66% gain and later reached Rs 2,600, a 72.98% increase from the issue price.
Despite the impressive start, Waaree’s stock quickly faced profit booking, leading to an 8-10% decline on both the BSE and National Stock Exchange (NSE).
Experts offer varying views on Waaree’s long-term potential amid India’s renewable energy transition.
Stock debuts with high premiums on NSE and BSE
Shares of Waaree Energies opened at Rs 2,550 on the BSE, significantly above the issue price, while listing at Rs 2,500 on the NSE, reflecting premiums of 69.66% and 66.33%, respectively.
The company’s market capitalization reached Rs 68,983.88 crore on the NSE, signaling solid initial demand.
Profit booking led to a swift decline, with shares dipping to an intraday low of Rs 2,300 on the NSE, while on the BSE, they dropped to Rs 2,294.55.
Should investors hold or sell?
Market analysts hold differing views on Waaree Energies’ growth trajectory. Narendra Solanki, Head of Fundamental Research at Anand Rathi, believes long-term investors should hold, citing Waaree’s strong market positioning and government support for renewable energy initiatives.
Meanwhile, Prashanth Tapse from Mehta Equities advises caution, suggesting that investors consider partial profit booking after the sharp listing gains.
Waaree Energies has strategically strengthened its market position through backward integration, extensive capacity expansion, and international market penetration.
With India’s rooftop solar market driven largely by commercial and industrial demand, the company’s focus on utility-scale installations positions it well for future growth.
Sagar Shetty of StoxBox sees Waaree’s global supply chain and robust order book as favorable for medium- to long-term investors.
Waaree Energies has demonstrated impressive financial growth, with revenue expanding at a CAGR of 99.8% between FY22 and FY24.
Net profit rose from Rs 79.6 crore in FY22 to Rs 1,274.3 crore in FY24, with return on equity (ROE) increasing from 17.69% to 30.26%, indicating financial resilience and operational efficiency.
The company raised Rs 3,600 crore through its IPO, including a fresh issue and an Offer-for-Sale (OFS) component.
Proceeds from the fresh issue will fund a new 6 GW manufacturing facility in Odisha for ingots, wafers, solar cells, and solar PV modules, enhancing Waaree’s production capacity and meeting rising solar demand.
This expansion reflects Waaree’s commitment to driving India’s renewable energy sector forward.
While grey market expectations hinted at a 100% listing premium, Waaree Energies’ 70% gain remains a notable debut.
The performance signals both strong demand and the potential for volatility, as evidenced by the intraday dips from profit booking.
The stock’s resilience amid these fluctuations will be a key factor for investors considering long-term prospects.
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