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Waaree Energies Set to List with Strong Premium Amidst Investor Enthusiasm

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Waaree Energies Set to List with Strong Premium Amidst Investor Enthusiasm

With significant demand and strong positioning in the solar energy market, Waaree Energies Ltd. is prepared for a stock market debut on October 28, where analysts anticipate a substantial listing premium. This optimism is driven by Waaree’s robust performance during its recent IPO, which closed with a staggering 76.34 times subscription rate, indicating strong interest from institutional investors and a favorable listing forecast.

High Demand Fuels Waaree Energies IPO Success

The Waaree Energies IPO, priced between ₹1,427 and ₹1,503 per share, raised ₹1,277 crore from anchor investors before the issue opened, showcasing early enthusiasm from major stakeholders. The overwhelming subscription rate and company strength in the solar photovoltaic (PV) sector have led analysts to predict a listing premium that could approach or even exceed 100%.

Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, highlighted Waaree’s strong fundamentals and demand. He expects a significant rise in stock price on debut, crediting Waaree’s established market position and growth prospects as major factors driving investor interest.

Listing Day Expectations: Potential Premium of Over 100%

The outlook from Sagar Shetty, a Research Analyst at StoxBox, points to an estimated debut premium of about 102% above the IPO’s highest price band, placing Waaree Energies in an advantageous position. “Waaree’s leadership in solar PV manufacturing, coupled with its installed capacity of 12 GW, gives it a competitive edge and positions it well for a strong stock market entry,” said Shetty.

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., projected Waaree Energies to list with a strong gain based on its grey market premium (GMP), which currently stands at 103.79%. Based on this GMP, Waaree shares could open around ₹3,063, marking a gain of ₹1,560 over the upper price band of ₹1,503. With an overall subscription rate of 79.44 times, the IPO performance highlights the high investor confidence in Waaree’s long-term potential.

Anticipating a “Blockbuster” Market Debut

Echoing these positive sentiments, Prashanth Tapse, Senior Vice President and Research Analyst at Mehta Equities Ltd., anticipates a “blockbuster market debut.” He notes that the robust demand from both retail and institutional investors, along with Waaree’s critical role in India’s renewable energy sector, will contribute to a strong initial share price. The overall investment climate around Waaree is boosted by its focus on clean energy, aligning with India’s growing emphasis on sustainability.

A Strategic Investment Opportunity for the Medium to Long Term

Analysts suggest that Waaree Energies’ IPO provides a promising opportunity for medium to long-term investors. The combination of solid financials, demand for clean energy, and Waaree’s strategic market presence position it as a compelling investment. Holding shares for an extended period may yield attractive returns, aligning with the company’s growth trajectory in India’s clean energy landscape.

Waaree Energies’ Grey Market Premium Indicates a Multibagger Return

Ahead of the listing date, Waaree Energies’ shares have shown high activity in the grey market, with a current GMP of ₹1,591, which is ₹61 higher than Thursday’s GMP of ₹1,530. This increase suggests confidence in a strong listing gain for allottees, even in the face of general market pressures such as volatility in the banking and auto sectors. Observers believe the grey market is signaling a multibagger return for Waaree Energies shareholders, predicting a potential listing price around ₹3,094 — about 106% higher than the IPO’s upper price of ₹1,503.

However, market experts caution that grey market trends are not a definitive gauge for listing gains. The grey market operates outside official regulatory frameworks and is not a reflection of Waaree’s financial fundamentals. Experts advise that investors should rely on their evaluation of the company’s financial position rather than solely on GMP figures when making decisions.

Listing Day Details for Waaree Energies

According to a recent BSE announcement, Waaree Energies’ shares will be available for trading on both the BSE and NSE starting at 10:00 AM on October 28, 2024. The company will be listed in the “B” Group of Securities, and trading members are informed of the active listing from Monday onward.

Waaree Energies’ anticipated listing on October 28 marks a significant milestone for the company, reflecting both the strong institutional and retail investor demand and its role as a leader in India’s solar energy sector. As the country continues to prioritize renewable energy, Waaree’s listing positions it well to benefit from this expanding market.

Disclaimer: Investment decisions should be based on thorough research and consultation with certified financial advisors. The views expressed here are based on industry insights and are not official investment recommendations

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