Soaring to the Sun: Waaree Energies' GMP jumps high, investors to potentially earn up to 90% listing day gains. Should you invest?
Oct 16, 2024, 15:10 IST
Even as the markets are expecting almost negligible listing day gains from the currently underway Hyundai Motor India's IPO worth Rs 27,870.16 crores IPO, the biggest India has ever seen, the GMP (grey market premium) of another upcoming mainboard IPO, Waaree Energies is seeing rapid growth.
A high GMP signifies that investors are expecting the stock to see a strong listing on the bourses, which translates into potentially high listing day gains for them.
The Hyundai IPO, which will close for subscription tomorrow, saw its GMP drop to Rs 25 today, with the estimated listing price also inching down to Rs 1,985. This brings its potential listing gains per share 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 Rs 1,365 today. This takes its probable listing price to Rs 2,868, and prospective listing day gains to a whopping 90.82%, data from IPO website Chittorgarh 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 fresh issue of 2.4 crore shares (worth Rs 3,600 crore) and OFS worth 0.48 crore shares, or Rs 721.44 crore. Notably, Hyundai Motor India will list on NSE and BSE on October 22, 2024, Waaree Energies is scheduled to be listed on stock exchanges on October 28, 2024.
The company's financials have been seeing a solid growth over the recent years, largely helped by India's booming renewables energy sector. India is set to almost double its renewable power capacity between 2022 and 2027. Of this, solar PVs, where Waaree is a big player, will constitute about 75%.
The company's revenue from operations grew at a CAGR of 99.83% between FY22 and FY24, jumping from Rs 28,542.65 million to Rs 1,13976.09 million during the period. Additionally, the company boasts of a strong order pipeline, with 16.66GW of pending domestic and export orders, reflecting sustained growth in the times to come.
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A high GMP signifies that investors are expecting the stock to see a strong listing on the bourses, which translates into potentially high listing day gains for them.
The Hyundai IPO, which will close for subscription tomorrow, saw its GMP drop to Rs 25 today, with the estimated listing price also inching down to Rs 1,985. This brings its potential listing gains per share 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 Rs 1,365 today. This takes its probable listing price to Rs 2,868, and prospective listing day gains to a whopping 90.82%, data from IPO website Chittorgarh 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 fresh issue of 2.4 crore shares (worth Rs 3,600 crore) and OFS worth 0.48 crore shares, or Rs 721.44 crore. Notably, Hyundai Motor India will list on NSE and BSE on October 22, 2024, Waaree Energies is scheduled to be listed on stock exchanges on October 28, 2024.
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About Waaree Energies
The company is India's largest manufacturer of solar PV (photovoltaic) modules, and is looking to raise funds for establishing a new manufacturing facility in Odisha for producing ingot wafer, solar cell and PV modules. Retail investors can bet for a minimum of 1 lot (9 shares) worth Rs 13,527. At present, Waaree operates 5 manufacturing facilities across the country.The company's financials have been seeing a solid growth over the recent years, largely helped by India's booming renewables energy sector. India is set to almost double its renewable power capacity between 2022 and 2027. Of this, solar PVs, where Waaree is a big player, will constitute about 75%.
The company's revenue from operations grew at a CAGR of 99.83% between FY22 and FY24, jumping from Rs 28,542.65 million to Rs 1,13976.09 million during the period. Additionally, the company boasts of a strong order pipeline, with 16.66GW of pending domestic and export orders, reflecting sustained growth in the times to come.