Waaree Energies' Rs 4,321-crore initial public offer (IPO) was off to a robust start on October 21, the first day of bidding, after the issue was subscribed 3.12 times by evening. The public offer drew bids for 6.58 crore shares as against 2.1 crore shares on offer, showed exchange data.

The company is a major player in the solar energy industry, focused on PV module manufacturing with an aggregate installed capacity of 12 GW as of June 30, 2023. There is also much buzz around Waaree Energies' grey market premium, which crossed the 100 percent premium ahead of its initial share sale on October 21.

As per NSE data, non-institutional investors were at the forefront, buying nearly 7.5 times the portion reserved for them. The retail investor portion was booked 3.04 times while the employee quota was subscribed 1.52 times. QIBs or Qualified Institutional Buyers purchased 7 percent of the issue reserved for them.

The IPO consists of a fresh issue of equity shares worth Rs 3,600 crore and an offer-for-sale (OFS) of 48 lakh shares, valued at Rs 721.44 crore, at the upper end of the price band, from promoters and existing shareholders. The total issue size amounts to Rs 4,321.44 crore.

At the upper end of the price band, the company's market valuation is estimated at over Rs 43,179 crore post-issue.

The proceeds from the fresh issue will primarily be used to establish a 6 GW manufacturing facility in Odisha, which will produce ingot wafers, solar cells, and solar PV modules. A portion of the funds will also be allocated for general corporate purposes.

The company currently operates five manufacturing facilities across India: Surat, Tumb, Nandigram, and Chikhli in Gujarat, and the IndoSolar facility in Noida, Uttar Pradesh.

Qualified institutional buyers showed the most interest, subscribing 208.63 times the portion reserved for them. Retail investors' quota has been subscribed 10.79 times, and the employees’ portion saw 5.17 times the demand. Non-institutional investors subscribed 62.48 times their reserved portion, as per NSE data.

The IPO consists of a fresh issue of equity worth Rs 3,600 crore and an offer-for-sale (OFS) of 48 lakh shares from promoters and existing shareholders, valued at Rs 721.44 crore at the upper price band. This takes the total issue size to Rs 4,321.44 crore.

Upon listing, Waaree Energies’ market capitalisation is expected to surpass Rs 43,179 crore, based on the upper price band.

The proceeds from the fresh issue will be primarily used to set up a 6 GW facility in Odisha for manufacturing ingot wafers, solar cells, and PV modules. A portion of the funds will also be used for general corporate purposes.

Waaree Energies currently operates five manufacturing plants across India, with locations in Surat, Tumb, Nandigram, and Chikhli in Gujarat, as well as IndoSolar in Noida, Uttar Pradesh.