Rising to the Sun: Waaree Energies GMP Jumps High, Investors Could Earn Up to 90% Trading Day Gains. Should it be invested?

Although the markets expect almost negligible gains from the current trading day Hyundai Motor India‘s IPO worth Rs 27,870.16 crore, the largest IPO India has ever seen, the GMP (gray market prize) of another upcoming motherboard IPO, Waaree Energies is experiencing rapid growth.

A high GMP means that investors expect the stock to see strong trading on the stock exchanges, resulting in potentially high gains on the trading day.

Hyundai’s IPO, which will close for subscription tomorrow, saw its GMP drop to Rs 25 today, with the estimated listing price also falling to Rs 1,985. This brings its potential list earnings per share up to a minuscule 1.28%.

On the other hand, the IPO of Waaree Energies, which will start on October 21 and continue till October 23, and has a price band of Rs 1,427-1,503, saw its GMP jump to 1,365 today rupees This brings its likely listing price to Rs 2,868 and potential day-of-listing gains to 90.82%, data on the Chittorgarh IPO website showed.

Unlike Hyundai India’s IPO, which is entirely an OFS (offer for sale), Waaree Energy’s Rs 4,321.44 crore IPO is a combination of a fresh issue of 2.4 crore shares of dollars (worth Rs 3.6 billion) and OFS worth 0.48 million shares or Rs 721 crore. Notably, Hyundai Motor India will feature there NSE i BSE on October 22, 2024, Waaree Energies is scheduled to go public on October 28, 2024.

About Waaree Energies

The company is India’s largest manufacturer of solar photovoltaic (PV) modules and is looking to raise funds to set up a new manufacturing facility in Odisha to produce ingot wafers, solar cells and PV modules. Retail investors can stake a minimum of 1 lot (9 shares) worth Rs 13,527. Waaree currently operates 5 manufacturing facilities across the country.

The company’s finances have seen solid growth over the past few years, largely helped by India’s booming renewable energy sector. India will nearly double its renewable energy capacity between 2022 and 2027. Of that, solar PV, where Waaree is a big player, will make up about 75%.

The company’s revenue from operations grew at a CAGR of 99.83% between FY22 and FY24, from Rs 28,542.65 crore to Rs 1,13976.09 crore during the period. In addition, the company has a strong order book with 16.66 GW of domestic and export orders pending, reflecting sustained growth in the coming times.