waaree energies IPO detail | sathigujarati.in
The Waaree Energies IPO, one of the most anticipated offerings in 2024, is set to open for subscription from October 21, 2024 to October 23, 2024. Waaree Energies is India’s largest solar PV module manufacturer, well-positioned to leverage the growing demand for renewable energy. Here are the detailed aspects of the IPO:
- IPO Size: The total issue size is ₹4,321.44 crore, comprising a fresh issue of ₹3,600 crore and an Offer for Sale (OFS) of 48 lakh shares worth ₹721.44 crore. In the OFS, key shareholders like Waaree Sustainable Finance and Chandurkar Investments will sell part of their holdings.
- Price Band: The price per share is set between ₹1,427 to ₹1,503.
- Lot Size: The minimum order is 9 shares (1 lot), amounting to around ₹13,527. Retail investors can apply for a maximum of 14 lots (126 shares), capping the total investment at ₹1,89,378.
- Listing: The shares will be listed on both BSE and NSE, with the expected listing date being October 28, 2024.
- Opening Date: October 21, 2024
- Closing Date: October 23, 2024
- Basis of Allotment: October 24, 2024
- Shares Credited to Demat: October 25, 2024
- IPO Listing Date: October 28, 2024.
The proceeds from the fresh issue will be used primarily to finance the construction of a 6 GW manufacturing facility for ingots, wafers, solar cells, and solar PV modules in Odisha. The remainder will be allocated for general corporate purposes.
Waaree Energies, established in 1990, is a leader in India’s renewable energy sector, specifically in solar PV modules, with a total installed capacity of 12 GW across its manufacturing facilities. The company has seen tremendous growth:
- Revenue rose from ₹2,945.85 crore in FY22 to ₹11,632.76 crore in FY24, a four-fold increase.
- Profit After Tax (PAT) for FY24 was ₹1,274.37 crore, up from ₹79.65 crore in FY22.
- In Q1 FY25, Waaree Energies recorded ₹401.12 crore in net profit on revenues of ₹3,496.41 crore, highlighting sustained momentum.
Waaree Energies stands out due to:
1. Its position as the largest solar PV manufacturer in India.
2. A strong and diversified global customer base.
3. Advanced manufacturing capabilities.
4. A proven track record of financial growth.
The IPO has generated considerable interest due to Waaree's established presence in a booming sector, with analysts recommending the stock for medium- to long-term investors .
1. What is an IPO?
An Initial Public Offering (IPO) is when a company offers its shares to the public for the first time, allowing individuals and institutional investors to purchase stock in the company and become shareholders.
2. Why do companies launch IPOs?
Companies launch IPOs to raise capital for business expansion, pay off debts, or fund other corporate needs. It also allows early investors and founders to monetize their investments.
3. How can I apply for an IPO?
You can apply for an IPO through your bank or brokerage using ASBA (Application Supported by Blocked Amount) via your Demat account. You need to select the IPO, choose your bid price, and submit your application.
4. What is the difference between a fresh issue and an offer for sale (OFS)?
A fresh issue refers to new shares created and offered by the company to raise funds. An OFS involves the sale of existing shares by promoters or investors without raising new capital for the company.
5. How is the IPO price determined?
The IPO price is set through two methods: fixed price or book-building. In a fixed-price IPO, the price is predetermined. In a book-building IPO, the price is determined based on bids from investors within a price range (price band).
6. What are the risks of investing in an IPO?
Like all investments, IPOs come with risks. These include stock price volatility post-listing, the company’s financial performance, and external market conditions, which can impact the stock value.
7. What happens if I don’t receive an IPO allotment?
If your application is not successful, the blocked amount in your account will be released, and you will not be charged. IPO allotment is based on demand and the number of shares available.
8. What does GMP (Grey Market Premium) mean?
GMP is the price at which shares of an upcoming IPO are traded in an unofficial market before they are listed. It gives investors a sense of how the market perceives the IPO’s demand.
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| waaree energies IPO detail |
Key IPO Details
- IPO Size: The total issue size is ₹4,321.44 crore, comprising a fresh issue of ₹3,600 crore and an Offer for Sale (OFS) of 48 lakh shares worth ₹721.44 crore. In the OFS, key shareholders like Waaree Sustainable Finance and Chandurkar Investments will sell part of their holdings.
- Price Band: The price per share is set between ₹1,427 to ₹1,503.
- Lot Size: The minimum order is 9 shares (1 lot), amounting to around ₹13,527. Retail investors can apply for a maximum of 14 lots (126 shares), capping the total investment at ₹1,89,378.
- Listing: The shares will be listed on both BSE and NSE, with the expected listing date being October 28, 2024.
IPO Timeline
- Opening Date: October 21, 2024
- Closing Date: October 23, 2024
- Basis of Allotment: October 24, 2024
- Shares Credited to Demat: October 25, 2024
- IPO Listing Date: October 28, 2024.
Use of Proceeds
The proceeds from the fresh issue will be used primarily to finance the construction of a 6 GW manufacturing facility for ingots, wafers, solar cells, and solar PV modules in Odisha. The remainder will be allocated for general corporate purposes.
Company Background & Financials
Waaree Energies, established in 1990, is a leader in India’s renewable energy sector, specifically in solar PV modules, with a total installed capacity of 12 GW across its manufacturing facilities. The company has seen tremendous growth:
- Revenue rose from ₹2,945.85 crore in FY22 to ₹11,632.76 crore in FY24, a four-fold increase.
- Profit After Tax (PAT) for FY24 was ₹1,274.37 crore, up from ₹79.65 crore in FY22.
- In Q1 FY25, Waaree Energies recorded ₹401.12 crore in net profit on revenues of ₹3,496.41 crore, highlighting sustained momentum.
Strengths and Competitive Position
Waaree Energies stands out due to:
1. Its position as the largest solar PV manufacturer in India.
2. A strong and diversified global customer base.
3. Advanced manufacturing capabilities.
4. A proven track record of financial growth.
The IPO has generated considerable interest due to Waaree's established presence in a booming sector, with analysts recommending the stock for medium- to long-term investors .
FAQ (Frequently Asked Questions)
1. What is an IPO?
An Initial Public Offering (IPO) is when a company offers its shares to the public for the first time, allowing individuals and institutional investors to purchase stock in the company and become shareholders.
2. Why do companies launch IPOs?
Companies launch IPOs to raise capital for business expansion, pay off debts, or fund other corporate needs. It also allows early investors and founders to monetize their investments.
3. How can I apply for an IPO?
You can apply for an IPO through your bank or brokerage using ASBA (Application Supported by Blocked Amount) via your Demat account. You need to select the IPO, choose your bid price, and submit your application.
4. What is the difference between a fresh issue and an offer for sale (OFS)?
A fresh issue refers to new shares created and offered by the company to raise funds. An OFS involves the sale of existing shares by promoters or investors without raising new capital for the company.
5. How is the IPO price determined?
The IPO price is set through two methods: fixed price or book-building. In a fixed-price IPO, the price is predetermined. In a book-building IPO, the price is determined based on bids from investors within a price range (price band).
6. What are the risks of investing in an IPO?
Like all investments, IPOs come with risks. These include stock price volatility post-listing, the company’s financial performance, and external market conditions, which can impact the stock value.
7. What happens if I don’t receive an IPO allotment?
If your application is not successful, the blocked amount in your account will be released, and you will not be charged. IPO allotment is based on demand and the number of shares available.
8. What does GMP (Grey Market Premium) mean?
GMP is the price at which shares of an upcoming IPO are traded in an unofficial market before they are listed. It gives investors a sense of how the market perceives the IPO’s demand.
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