Waaree Energies' IPO fully subscribed on day 1; ends with 3.29 times subscription

New Delhi: The initial public offer of solar panel maker Waaree Energies Ltd was subscribed 3.29 times on the first day of share sale on Monday, driven by encouraging participation from non-institutional and retail investors.

The Rs 4,321.44 crore initial share sale received bids for 6,92,83,467 shares against 2,10,79,384 shares on offer, as per NSE data.

The portion for non-institutional investors received 7.98 times the subscription, while the category for retail individual investors (RIIs) fetched 3.16 times the subscription. The quota for qualified institutional buyers (QIBs) subscribed 8 per cent.

Waaree Energies on Friday said it has mobilised Rs 1,277 crore from anchor investors.

The issue, with a price band of Rs 1,427 to Rs 1,503 per share, will remain open for public subscription from October 21 to October 23.

The IPO is a combination of a fresh issue of equity shares aggregating to Rs 3,600 crore and an Offer For Sale (OFS) of 48 lakh equity shares worth Rs 721.44 crore, at the upper end of the price band, by a promoter and existing shareholders. This translates into a total size of Rs 4,321.44 crore.

Under the OFS, promoter Waaree Sustainable Finance Pvt Ltd and shareholder Chandurkar Investments Pvt Ltd are offloading shares.

Proceeds from the fresh issue will be used for setting up the 6 GW (gigawatt) of the Ingot Wafer, Solar Cell and Solar PV module manufacturing facility in Odisha. Besides, a portion will be used for general corporate purposes.

The company's market valuation has been pegged at over Rs 4,300 crore post-issue at the upper end of the price band.

Waaree Energies, one of the major players in the solar energy industry in India, is focused on PV module manufacturing with an aggregate installed capacity of 12 GW as of June 30, 2023.

It operates five manufacturing facilities with one factory each, located at Surat, Tumb, Nandigram and Chikhli in Gujarat, and the IndoSolar Facility, in Noida, Uttar Pradesh.

Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India) Private Ltd, SBI Capital Markets, Intensive Fiscal Services and ITI Capital are the book-running lead managers to the issue.