Waaree Energies share price falls 3% after bumper debut. Here's why

Waaree Energies listing: Shares of Waaree Energies opened at Rs 2,550, at a premium of 69.66% over its issue price of Rs 1,503 on the Bombay Stock Exchange (BSE).

In Short

• Waaree Energies shares debut at 70% premium on BSE
• Shares fell nearly 3% post-listing due to profit booking
• The IPO had an overall subscription of 79.44 times

Shares of Waaree Energies fell over 3% on Monday after making an impressive debut on the Dalal Street listing at a premium of 70%.

Waaree Energies shares opened at Rs 2,550, at a premium of 69.66% over its issue price of Rs 1,503 on the Bombay Stock Exchange (BSE).

On the National Stock Exchange (NSE), the stock also debuted with a 66.33% premium, opening at Rs 2,500 compared to the issue price.

Waaree Energies shares were trading down 2.92% at Rs 1447.15 at the time the article was being written. The drop in share price of Waaree Energies might have been due to profit booking by investors given its strong market debut.

Waaree Energies is India’s largest manufacturer and exporter of solar modules having a capacity of 13.3GW, which grew 6x in just three years from 2GW in FY21. It has a market share of 21% in India and a healthy 44% share in exports of solar modules from India.

Waaree Energies Initial Public Offering (IPO) attracted significant interest from investors. The IPO was subscribed 79.44 times by the end of the bidding process on October 23, 2024. In the retail category, it was subscribed 11.27 times. The Qualified Institutional Buyers (QIB) category saw a much higher interest, with a subscription of 215.03 times, while the Non-Institutional Investors (NII) category was subscribed 65.25 times.

SHOULD YOU HOLD OR SELL?

Shivani Nyati, Head of Wealth, Swastika Investmart Ltd said that the company has a strong focus on growth and expansion. It has demonstrated remarkable financial growth. The company has a diversified base of global and Indian customers with a strong order book.

"Waaree Energies Limited made a strong listing of 2509, reflecting investor confidence in the company's growth potential and financial stability. Investors may consider booking part profit here, and those who want to hold it for the long term may keep a stoploss of 2000," said Nyati.

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