Waaree Energies started trading on the stock exchanges at a significant price. On the Bombay Stock Exchange (BSE), the stock opened at Rs 2,550, and on the National Stock Exchange (NSE), it opened at Rs 2,500. BSE, reflecting a remarkable 69.66% premium over its IPO price of Rs 1,503 and NSE, indicating a 66.33% gain. Despite the strong start, the stock’s price soon began to decline. Within a short period, it fell nearly 10% to Rs 2,294.50.
Despite the strong listing performance, the shares fell short of grey market expectations, where unlisted shares were reportedly trading at a much higher premium of Rs 1,275 above the IPO price of Rs 1,503. This indicates that grey market investors were expecting the stock to perform even better than it did at listing, leading to an anticipated gain of 84.83%. Waaree Energies’ IPO attracted a record 97.34 lakh applications, surpassing previous records held by Bajaj Housing Finance.
Market analysts have mixed recommendations regarding Waaree Energies’ future. Ambareesh Baliga, an independent analyst, advised against purchasing shares at current levels, it suggests that he believes the stock may be overvalued. Baliga advises investors who already own shares to sell half of their holdings to realize gains.
Similarly, Astha Jain from Hem Securities recommends that investors who received shares during the IPO (allottees) should consider selling a portion of their holdings to secure some profits. Jain also advocates for long-term holding of the stock, which indicates her belief in the company’s potential for sustained growth over time. She also advised new investors to consider entering the stock around Rs 2,100–2,150.
Waaree Energies has estabilished itself as a leader in the solar energy sector, with a focus on utility-scale projects. The company has demonstrated strong financial growth, as indicated by a compound annual growth rate (CAGR) of 99.8% in operational revenue from FY22 to FY24. Waaree Energies has not only increased its sales but has also improved its profitability. A rising profit after tax suggests that the company is managing its costs effectively, contributing to overall financial health.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. News Eager is not responsible for any investment decisions made based on this content. Please consult a financial advisor for personalized advice.
