Waaree Energies' IPO opens lot size price band renewable energy minimum investment issue size subscribe or avoid

Primary Market Update: The Rs 4,321 crore archetypal nationalist offering (IPO) of Waaree Energies opened for nationalist subscription today. The contented volition adjacent connected October 23 and comprises a caller stock issuance of Rs 3,600 crore and an connection for merchantability (OFS) of up to 48 lakh shares worthy Rs 721.4 crore.

Ahead of the contented opening, the institution mopped up Rs 1,277 crore from 92 anchor investors, including the likes of HDFC Funds, Aditya Birla Funds, Mirae Asset, Motilal Oswal Funds, Pinebridge and Nomura among others.

The terms set for the contented has been decided successful the scope of Rs 1,427- Rs 1,503 per share. 

Post the issue, promoter's holdng successful the institution volition beryllium brought down to 64.15 per cent.

IPO objective:

Through the proceeds, the renewable vigor institution intends to partially concern the outgo of establishing a 6GW ingot-wafer, star cell, and star PV module manufacturing installation successful Odisha, India. Also, it intends to deploy the remaining funds towards wide firm purpose.

About Waaree Energies:

Incorporated successful 1990, Waaree Energies is the largest shaper of star PV modules successful the country. Its portfolio of star vigor products comprises multi-crystalline modules, monocrystalline modules, and TopCon modules. 

Should you subscribe oregon debar Waaree Energies' IPO?

ICICI Direct has assigned a 'subscribe' standing connected the IPO fixed the given beardown maturation prospects amid manufacture tailwinds. The brokerage stated that sales/PAT astatine the company has grown astatine a CAGR of 100%/277% respectively implicit FY22-24, led by capableness scaleup and accordant betterment successful EBITDA borderline profile.

The company clocked EBITDA margins of 13.8 per cent in FY24 with RoCE placed astatine 22 per cent.

At the precocious extremity of the terms band, Waaree will bid a valuation of ~35x P/E, ~22.4x EV/EBITDA & ~3.4x P/S connected FY24 ground which is astatine a discount to its rival i.e. Premier Energies, added ICICI Direct.