Waaree Energies’ share price list at healthy premium on October 28, however shortly the price fell amid profit booking by investors. Market experts advising on its buy, sell or hold strategy.
Shares of the leading solar panel manufacturer opened on the Bombay Stock Exchange (BSE) at Rs 2,550 apiece, reflecting a 69.66 percent jump from the issue price. Later, they rose to Rs 2,600, marking a 72.98 percent gain.
On the National Stock Exchange (NSE), Waaree Energies stock debuted at Rs 2,500, representing a 66.33 percent premium, with the company’s market capitalization reaching Rs 68,983.88 crore on the NSE.
Despite the strong start, the company’s shares quickly declined as investors engaged in profit booking. The stock dropped nearly 8 percent to an intraday low of Rs 2,300 on the NSE, while on the BSE, it fell almost 10 percent to Rs 2,294.55.
Market experts offered mixed views on Waaree’s long-term prospects. Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, suggested a long-term hold, citing the company’s established position, aided by government support for renewable energy initiatives.
“Waaree’s legacy and domestic renewable energy transition could unlock further growth opportunities. If market sentiment generates significant listing gains, small investors might consider partial profit booking,” Solanki noted.
Echoing this sentiment, Sagar Shetty, Research Analyst at StoxBox, highlighted Waaree’s competitive global expansion, robust order book, and streamlined supply chain management. “We advise investors with an allotment to maintain a medium- to long-term outlook, as the company’s positioning supports sustainable growth,” Shetty added.
Waaree Energies’ share price fell short of the expectations in the grey market. The GMP indicated a listing gain of over 100 percent on October 28, however, the stock was listed at a 70 percent premium.
Waaree Energies has fortified its market position through extensive capacity expansion, backward integration, and targeted international growth. With 70-80% of India’s rooftop solar installations attributed to the commercial and industrial sectors, the company’s focus on the utility-scale solar market—using open access and group captive models—also strengthens its growth prospects.
Financially, Waaree has demonstrated impressive growth, with operational revenue expanding at a compound annual growth rate (CAGR) of 99.8 percent from FY22 to FY24. Profit after tax surged 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 worth Rs 721.44 crore. Proceeds from the fresh issue will primarily finance a 6 GW manufacturing facility in Odisha for ingots, wafers, solar cells, and solar PV modules, with a portion allocated to general corporate purposes.
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