Waaree Energies shares made a strong debut on the bourses on October 28 and were listed at a significant premium to the issue price.
Waaree Energies shares slip 9 percent after stellar 66 percent listing gain
Shares of the leading solar panel maker opened at Rs 2,550 per share on the Bombay Stock Exchange (BSE), marking a 69.66 percent jump from the issue price, and later touched Rs 2,600, registering a gain of 72.98 percent.
On the National Stock Exchange (NSE), Waaree Energies stock debuted at Rs 2,500, representing a 66.33 percent premium, and the company's market capitalization reached Rs 68,983.88 crore on the NSE.
Despite the strong opening, the company's shares witnessed a sharp decline due to profit booking by investors. The stock fell nearly 8 percent to hit an intraday low of Rs 2,300 on the NSE, while on the BSE it fell nearly 10 percent to Rs 2,294.55.
Market experts offered mixed opinions on Waaree's long-term prospects. Narendra Solanki, head of fundamental research at Anand Rathi Shares & Stock Brokers, suggested a long-term hold, citing the company's established position aided by government support for renewable energy initiatives. 'Waaree's legacy, coupled with the domestic renewable energy transition, could open up further growth opportunities. If market sentiment generates significant listing gains, small investors may consider partial profit booking,' Solanki said.
Sagar Shetty, research analyst at Stoxbox, highlighted Waaree's competitive global expansion, strong order book and well-organized supply chain management. 'We advise investors to maintain a medium to long-term view, as the company's position supports sustainable growth,' Shetty said. However, Prashant Tapase, senior vice president of research at Mehta Equities Ltd, offered a cautious view, advising investors to consider profit booking given the stock's sharp listing gains. Tapase commented, 'We believe post-listing valuations could be on the higher side given the low to medium-term all-in business growth visibility.' Waaree Energies share price in the grey market remained below expectations. GMP indicated a listing gain of over 100 percent on October 28, however, the stock listed at a 70 percent premium. Waaree Energies has strengthened its market position through extensive capacity expansion, backward integration and targeted international growth. With 70-80% of India's rooftop solar installations belonging to the commercial and industrial sectors, the company's focus on the utility-scale solar market - using open access and group captive models - strengthens its growth prospects.
Financially, Waaree has demonstrated impressive growth, with operating revenues growing at a compound annual growth rate (CAGR) of 99.8 percent from FY22 to FY24. Profit after tax grew from Rs 79.6 crore in FY22 to Rs 1,274.3 crore in FY24, while return on equity (ROE) improved from 17.69 to 30.26 percent.
The Rs 3,600-crore IPO comprised a fresh issue of equity shares and an offer-for-sale (OFS) by existing stakeholders, aggregating to 48 lakh shares aggregating to Rs 721.44 crore. Proceeds from the fresh issue will primarily fund a 6 GW manufacturing facility for ingots, wafers, solar cells and solar PV modules in Odisha, a portion of which will be allocated for general corporate purposes.
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