Waaree's stock tumbles over 5%, hours after listing at a premium of 66.33% on the bourses

Hours after listing on both the NSE and BSE at a handsome premium of around 70%, stocks of Waaree Energies tumbled by over 5%. As of 2:45 pm today, Waaree's stock was trading at Rs 2,356.20, down by 5.75% on NSE, while on BSE, the stock was trading at Rs 2,358.20, down by as much as 7.76%.

Notably, the stock was listed at Rs 2,550 on the BSE today and Rs 2,500 on the NSE. After hitting an intra-day high of Rs 2,624 during the day, Waaree's stocks also slumped to a low of Rs 2,300 on the NSE, where its total market cap stood at Rs 68,660.68 crore.

Waaree's offer worth Rs 4,321.44 crore saw a thumping reception from investors across all categories and, overall, was subscribed to around 79.44 times. Retail investors oversubscribed 11.27x times to the issue, bidding for 11,16,95,301 shares, as opposed to 99,11,869 shares reserved for them. The price band for the IPO was set between Rs 1,427 and Rs 1,503, with investors required to subscribe to a minimum of 9 shares.

However, QIBs (qualified institutional buyers) were the most enthusiastic takers of this offer, oversubscribing 215.03x to the issue. As against 55,38,663 shares earmarked for them, QIBs bid for a staggering 1,21,79,37,402 shares.

Data suggests that on BSE, as of 2:30 pm, about 70,893 shares of Waaree had been bought, while a massive 7,26,330 shares had been sold during the day. On NSE, a total of 6,84,826 shares had been bought by investors, while 15,42,515 shares had been sold, suggesting that heavy profit booking was underway in the markets today.

On the financial front, Waaree has also been posting steady numbers over the past few years. Its PAT (profit after tax) jumped from Rs 79.65 crore in FY22 to Rs 500.28 crore in FY23 and Rs 1,274.38 crore in FY24. The company also boasts a healthy PAT margin of 11.47%.

In a media interaction today, Amit Paithankar, CEO of Waaree Energies, noted that currently, demand is extremely robust, with the policy framework helping the same. "We have been growing our margins, which now stand at 15%. Of course, in the next two years, we see them evolve at a higher level. All of that taken together, we are looking at robust margins going forward of about 200 basis points," he added.