Introduction
A prominent player in the Indian solar PV modules manufacturing, Waaree Energies recently had its IPO of 4321 Crores. The Waaree Energies IPO received a staggering response with highest number of applications (97.33 lakh applications) received for an IPO at an upper cut-off price. The bidding period of this IPO ended on 23rd of October, 2024. Now comes the big question for people who have received allotment which is whether to hold on to the allotted share or sell-off and book profits.
Waaree Energies sits at the top of the leaderboard for India with 12 GW in solar module capacity, more than 1.9 times that of its nearest competitor. The company currently operates five manufacturing plants and provides a portfolio of multicrystalline, monocrystalline and TopCon modules.
The Waaree Energies IPO had tremendous investor appetite as the retail portion subscribed 10.79 times, and the section dedicated to non-institutional investors witnessed 62.49 times subscription with the qualified institutional buyers segment being fully subscribed 208.63 times.
Most brokerages have maintained a positive rating for the Waaree Energies IPO primarily due to its robust financial performance and growing demand for green energy but reliance on China remains one of the primary concerns.
Key Points
When deciding whether to hold or sell an IPO such as Waaree Energies, here are some key points to consider such as:
Company Fundamentals: Evaluate the company’s financial health, growth prospects, and market position.
Market Conditions: Look at overall market trends and sentiment towards the sector in which Waaree operates.
Valuation: Analyse the IPO’s valuation compared to its peers and historical performance.
Investment Goals: Consider your own financial situation, risk tolerance, and investment strategy.
Reference/Comparisons
Reference of Waaree Energies IPO with own listed companies in BSE – Waaree Technologies & Waaree Renewable Technologies:
| Particulars | Waaree Technologies | Waaree Renewable Technologies |
| Listing Price | 13.05 | 2.80 |
| All Time High | 2209.40 | 3037.75 |
| CMP (Current Market Price) | 804.70 | 1490.70 |
| Price Growth (%) in 5 Years (CAGR) | 134.16% | 259.57% |
Here’s a brief data for reference with industry peers.
| Particulars | Tata Power | Adani Green |
| Listing Price | 10.04 | 30 |
| All Time High | 494.85 | 3050 |
| CMP (Current Market Price) | 422.10 | 1644 |
| Price Growth (%) in 5 Years (CAGR) | 48.94% | 79.21% |
From both the tables above, we can observe that, companies in the solar PV molules sector are witnessing an exponential growth in the Indian market. Some of the factors driving this market are government initiatives, decreasing costs, and increasing energy demands. A long term perspective of approximately 5 years can be a game changer for this sector investments.
Following are some key pointers to look at:
- Government Policies: As part of its ambitious programme, the Indian government has under the National Solar Mission already set a target of increasing solar energy up to 280 GW by 2030. The policies in the lines of Production Linked Incentive (PLI) for domestic manufacturing are also at play.
- Cost Reductions: Technological advancements, economies of scale, and increased competition over the last ten years have dramatically reduced the costs of solar PV modules. Hence, solar energy is highly available and attractive to residential as well as commercial users.
- Rising demand: The ever-growing consumption of electricity and the emphasis on renewable energy sources have seen a rise in demand for solar installations in all sectors, from residence to commercial and industrial sectors
- Manufacturing growth: India has been working towards making India self-reliant in solar manufacturing with minimal dependence on imports. Scores of new manufacturing units have been installed of late that have provided employment opportunities as well as technological up-gradation.
- Investments: This sector has attracted significant foreign and domestic investment, with various companies wanting to increase solar production in India.
- Sustainability: There is a global and national focus on sustainability and reducing carbon footprint, which projects solar energy as a core solution in achieving climate change goals and further propels the growth of this sector.
Note: If you’re uncertain, consulting with a financial advisor might be beneficial.
Disclaimer: This content/article is made for educational purposes only. We do not recommend this content as adviser tips. Always take advice from your financial advisor for investing in stock market. Investments are subject to market risk. We are not SEBl registered.
Data: Data collected from Stockedge, Trading View https://rc-web.stockedge.com/share/waaree-renewable-technologies/6131?section=growthpattern https://rc-web.stockedge.com/share/waaree-technologies/15759?section=growthpattern
