New Delhi: Today the IPO of Waaree Energies is hitting the stock market. It is the country’s largest company manufacturing solar panels or solar modules. Investors will be able to invest in this till 23 October 2024. The company plans to raise Rs 4,321 crore through IPO. We are telling you its price band, gray market price and whether you should subscribe to it or not.
What is the company’s plan?
Mumbai-based company Waaree Energies will issue 2.39 crore fresh shares worth Rs 3,600 crore in this IPO. Along with this, the promoters and shareholders of the company are bringing an offer of 48 lakh shares for sale or OFS. There is an attempt to raise Rs 721.44 crore through OFS. The big (anchor) investor has placed the bid in this IPO on October 18 itself. From today investors including retail and other categories will start bidding.
What is the price band?
The price band of one share of Vari Energies has been fixed at Rs 1,427 to Rs 1,503. For this, the minimum lot size has been fixed at 9 shares. This means that retail investors will have to invest at least Rs 13,527.
How much will the reservation be?
In this IPO, 50 percent shares are reserved for Qualified Institutional Buyers i.e. QIB investors. Its 15 percent share is reserved for non-institutional investors while 35 percent is reserved for retail investors.
What will happen to the money raised from IPO?
Vaari Energies, founded in 1990, will use the proceeds from this IPO to set up a 6 GW ingot wafer, solar cell and solar PV module manufacturing facility in Odisha. Additionally a portion will be kept for general corporate purposes. At present the company has an installed capacity to manufacture solar modules of 12 gigawatts. Besides, it has captured 20 percent of the market. The company currently has four manufacturing plants in Gujarat. What is GMP
There is a lot of demand for this IPO in the gray market. A premium of Rs 1,510 was being quoted for it in the gray market at 8.30 am on Monday. Meaning that if the issue price of Rs 1503 is considered to be the upper band of the price band, then the premium on it is 100.47 percent.