Waaree Energies Limited, a maker of solar PV modules, is seeing strong demand for its initial public offering (IPO). Starting on October 21 and ending today, October 23, the Waaree Energies initial public offering (IPO) bidding will take place. The IPO has been subscribed for almost nine times in just two days.
Waaree Energies IPO Sees Strong Demand: LIVE Day 3 Updates
The Waaree Energies initial public offering (IPO) pricing range is ₹1,427 to ₹1,503 per share. Through the book-built issuance, the business hopes to raise ₹4,321.44 crore at the upper end of the pricing range. On October 28, Waaree Energies IPO is anticipated to go public.
An overview of Waaree Energies’ financial performance
Waaree Energies’ revenue and profit have increased significantly during the last three fiscal years:
FY22: ₹79.65 crore in net profit on ₹2,945.85 crore in total revenue.
FY23: With a net profit of ₹500.28 crore, total revenue jumped to ₹6,860.36 crore.
FY24: Net profit came to ₹1,274.38 crore, while revenue climbed to ₹11,632.76 crore.
The company declared a net profit of ₹401.12 crore for the first quarter of FY25, which ended on June 30, 2024, on a total income of ₹3,496.41 crore.
Both Waaree Energies’ top-line and bottom-line numbers have increased dramatically, especially since FY23.
Waaree Energies’s valuation and important financial metrics
The company has reported an average Return on Net Worth (RoNW) of 26.95% and an average EPS (Basic) of ₹31.94 during the last three fiscal years.
The IPO price suggests: NAV of ₹169.94 (as of June 30, 2024) yielded a P/BV of 8.84.
P/BV of 5.35 based on the upper price band post-IPO NAV of ₹281.16 per share.
The P/E ratio is 26.91 if we apply the fully paid-up equity after the IPO to the annualized earnings for FY25. The P/E ratio for FY24’s earnings is 44.36.
With pricing that reflects the company’s recent performance and future potential, the issue seems to be reasonably valued based on these parameters.
Waaree Energies’s profitability and return metrics
The business has recently recorded steady increases in its PAT margin:
- FY22: 2.70 percent
- FY23: 7.29%
- FY24: 10.96%
- Q1–FY25: 11.47%
- Likewise, for the respective periods, the Return on Capital Employed (RoCE) is:
- FY22: 23.49%
- FY23: 48.83%
- FY24: 36.95%
- Q1–FY25: 9.56%
- Although the RoCE exhibits considerable variation, indicating differing levels of efficiency in capital usage across different periods, these figures suggest a growing profit margin over time.
Day 3 Subscription Status for Waaree Energies’ IPO
The Waaree Energies IPO has received 76 subscriptions altogether as of the third day.
The breakdown by category is as follows:
208 subscriptions from Qualified Institutional Buyers (QIBs)
62 subscriptions were made by non-institutional investors (NIIs).
Retail Investors: Over ten subscriptions
QIBs are at the forefront of this robust demand, which is indicative of intense interest from both institutional and non-institutional investors.
Day 3 LIVE of Waaree Energies IPO: Investors Respond Well
The Waaree Energies IPO subscription data shows that investors in the Indian primary market responded favorably. With 18.51 crore bids received against the 2.10 crore shares on offer, the IPO was subscribed 8.78 times by the end of Day 2.
The breakdown by category is as follows:
Investors in retail: 6.36 times subscribed
- NIIs, or non-institutional investors: 24.30 times subscribed
QIBs, or qualified institutional buyers, are: 1.73 times subscribed
Strong investor confidence in Waaree Energies’ growth potential is indicated by the increasing interest across all categories.
Last Opportunity to Apply Today: Waaree Energies IPO Day 3 LIVE
The Waaree Energies IPO application deadline is today. The bidding will end today, October 23, after opening on October 21. Investors can join in this eagerly awaited public offering by placing their bids till the end of the day.
No responses yet