Investors have responded well to Waaree Energies' initial public offering (IPO), as the issue was fully subscribed within hours of going up for bid on Monday.

The NSE website states that bids for 3,10,90,599 shares were received for the initial share sale, out of the 2,10,79,384 shares that were offered. This resulted in a 1.47-time subscription until 12:38 p.m. on October 21.

Non-institutional investors led the demand, placing bids that were 4.63 times higher than the quota allocated to them. NIIs placed bids for 2.02 crore shares compared to 43.73 lakh shares allotted to them.

Out of the 99.11 lakh shares reserved for the category, more than 1.57 crore shares of 'Waaree Energies' were applied for by retail individual (RIIS) investors. The retail section's bids were 2.37 times.

Qualified Institutional Buyers (QIBs) placed no bids on the issue, turning away from the public issue.

IPO Details

The IPO price range for Waaree Energies is between Rs 1.427 and Rs 1.503 per share, with a valuation of Rs 4,321.44 crore.

The mainboard public offer consists of a fresh issue of 2.4 crore shares, worth Rs 3,600 crore, and an offer-for-sale (OFS) portion of 48 lakh shares, worth Rs 721.44 crore.

Minimum bid across categories

For institutional buyers who fulfil the requirements, Waaree Energies has reserved 50 per cent of the net offer. 15 per cent of the net issue has been set aside for non-institutional investors (NIIs), and up to 35 per cent has been set aside for the retail sector.

Retail investors who want to apply for the mainboard issue must have a minimum lot size of nine shares, or Rs 13,527 total.

Nonetheless, the minimum lot size for small non-institutional investors (sNII) is 15 lots, each containing 135 shares, or Rs 2,02,905.

For a total investment of Rs 10,00,998, big non-institutional investors (bNIIs) can purchase 74 lots, totalling 666 shares.

Use of IPO proceeds

The net IPO proceeds will be used to establish a 6-gigawatt (GW) ingot wafer, solar cell, and solar PV module manufacturing facility in the state of Odisha and for general corporate purposes.

Company financials

For the quarter ending June 30, 2024 (Q1FY25), Waaree Energies generated Rs 3,496.41 crore in revenue and Rs 401.13 crore in profit-after-tax (PAT). at the conclusion of the June quarter of the current fiscal year. Waaree Energies' revenue grew by over 69 per cent from Rs 6,860.36 crore in FY23 to Rs 11,632.76 crore in FY24.

Furthermore, from Rs 500.28 crore in FY23 to Rs 1,274.38 crore in FY24, the company's PAT increased by more than 154 per cent. Waaree Energies' net worth increased by over 123 per cent to Rs 4,074.84 crore from FY23, when it was valued at Rs 1,826.02 crore.