Waaree Energies shares drop over 8% despite securing 180 Mwp solar PV modules order

The recently listed IPO has seen exuberance post-listing, with gains of nearly 60% in 10 trading sessions. The sudden surge in share price was largely due to the company’s strong market position and equally strong fundamentals.

On Wednesday, Waaree Energies crossed ₹1 lakh crore market cap, becoming the 93rd largest company in India, surpassing a few well-known large-caps like Lupin, Hero MotoCorp, Tata consumer products, and others.

The IPO also received a bumper response as the overall IPO was subscribed by a record number of applications at 97 lakhs, and the overall issue was subscribed 76x. The Qualified institutional investors' category got 208x subscriptions, Non-qualified institutional investors got 62x, and the retail category applied 10.6x.

Waaree Energies has demonstrated impressive financial growth since FY23, with net profit rising from ₹79.65 crore to ₹500.28 crore and further to ₹1,274.38 crore in FY24.

Established in 2007, Waaree Energies began by focusing on solar PV module manufacturing and has rapidly expanded its capacity from 4 GW in fiscal 2022 to 12 GW by mid-2024. It is India’s largest solar PV module manufacturer, with an installed capacity of 12 GW as of June 30, 2024.

The share price of Waaree Energies traded 8.2% lower at ₹3,338 apiece on the NSE on Thursday despite positive developments of new order wins. The sudden drop in share price can be attributed to profit booking after the sharp rally of 60% post-listing in 10 days.