QIB Portion Sees 208.63 Times Subscription as Investors Show Confidence in Waaree Energies’ Growth Potential
Waaree Energies Limited’s Initial Public Offering (IPO), which closed on October 23, 2024, received an overwhelming response, particularly from qualified institutional buyers (QIBs). The IPO was subscribed a total of 76.34 times across all investor categories, showcasing significant investor interest and confidence in the company’s growth potential.
The QIB category saw the highest level of interest, with a staggering subscription of 208.63 times. QIBs bid for 121.79 crore shares against the 58.37 lakh shares available, marking a clear signal of strong institutional backing. Leading the demand in this category were foreign institutional investors (FIIs), who submitted bids for 48.77 crore shares, closely followed by domestic financial institutions, which bid for 48.56 crore shares. Additionally, mutual funds accounted for 6.41 crore shares in their bids, reinforcing the solid interest from large-scale investors.
In the non-institutional investors (NII) category, the IPO was subscribed 62.49 times. Larger bids, specifically those above ₹10 lakh, dominated this segment, with an impressive 68.30 times subscription. In contrast, bids between ₹2-10 lakh were subscribed 50.85 times, showing that high-net-worth individuals were particularly keen on the offering.
Retail investors also showed significant interest, with their portion of the IPO subscribed 10.79 times. Most retail investors opted to place bids at the cut-off price, indicating their eagerness to secure shares. The employee portion, while more modest, was still subscribed 5.17 times, suggesting a positive outlook from within the company.
The overall IPO size was 2.10 crore shares, but the offering attracted bids for a total of 160.91 crore shares, underscoring the strong demand across all investor segments. The remarkable response from institutional investors, especially in the QIB category, reflects a high level of confidence in Waaree Energies’ market positioning and future growth prospects in the renewable energy sector.
Waaree Energies has established itself as a key player in the renewable energy industry, particularly in the solar power segment. The robust subscription levels across all categories indicate that investors see significant potential in the company’s business model and growth strategy.
The allotment of shares is expected to begin shortly, with investors eagerly awaiting the outcome. Given the substantial oversubscription, particularly in the QIB and NII segments, the allocation process will be competitive.
This strong institutional response signals that Waaree Energies is well-positioned to leverage the growing demand for renewable energy solutions in India and globally. The company’s track record and the increasing focus on sustainable energy sources make it an attractive option for both domestic and foreign investors.