Waaree Energies make stellar debut, lists at 66% premium; here’s how much investors gained from IPO listing

India’s leading solar panel manufacturer Waaree Energies Ltd made a strong debut on the stock exchanges on Monday, October 28, as its shares opened at a 66% premium.

On the other hand, Deepak Builders and Engineers made a weak debut, as its shares were listed at a 1.5% discount.

Waaree Energies mobilised ₹4,321.44 crore from public investors through its IPO, which combined a fresh issue of shares worth ₹3,600 crore and an offer-for-sale portion of ₹721.44 crore.

According to stock exchange data, Waaree Energies shares were listed on the NSE at ₹2,500 per piece against their issue price of ₹1,503 apiece, reflecting a premium of 66.3% to the issue price. On the BSE, the company's shares debuted at ₹2,550 per share, a premium of 69.6%.

Waaree Energies investors earn strong return on investment

The strong listing also resulted in gains for investors who received IPO share allotments. The minimum bidding quantity for the IPO was 9 shares for retail investors. The IPO investors who received at least one lot in the primary issue of Waaree Energies would have made a profit of ₹8,973 at the listing price on NSE.

At the listing price of ₹2,500, the value of the single lot stood at ₹22,500 (₹2,500 x 9) against ₹13,527 (₹1,503 x 9) at the issue price.

Deepak Builders IPO investors, however, faced losses at the listing price. The stock listed at a discount of 1.5% at ₹200 against the issue price of ₹203 per share on the NSE.

IPO investors took a hit of ₹219 for at least a single lot size of 73 shares. For the investors, who were allotted at least a single lot size of 73 shares, the listing price stood at ₹14,600 (₹200x73), lower than the minimum bidding value of ₹14,819 for a single lot in the IPO.

Deepak Builders shares slid more than 16% to a day low of ₹166.41 per share at 12:15 am, deepening losses for IPO investors.

Deepak Builders’ initial public offering was booked 41.54 times in the three-day bidding period ending on October 23. The non-institutional investors (NIIs) quota was booked 82.47 times. The retail investors’ portion was booked 39.79 times, and the qualified institutional buyers (QIBs) quota was booked 13.91 times.

Experts optimistic about Waree Energies shares

Experts have expressed optimism about Waree Energies' shares in coming months, citing its strong fundamentals and leadership in the solar energy sector.

Waree Energies reported revenue of ₹11,397 crore for FY24, up ₹6,750 crore in the previous year. Net Profit also increased to ₹1,274 crore in FY24 from ₹500 crore in FY23.

Strong bidding in the IPO has also bolstered hopes of decent returns in future. As per exchange data, Waree Energies IPO was booked over 76 times during the subscription period from October 21 to October 23. The QIBs portion was subscribed 208.63 times, non-institutional investors’ quota by 62.49 times and retail investors by 10.79 times.