Waree Energies Announces IPO Price Range of Rs 1,427-1,503, 45% Below Unlisted Valuation – EQ
Waree Energies Ltd has announced its initial public offering (IPO) price band, setting it between Rs 1,427 and Rs 1,503 per share. This pricing reflects a significant 45% discount compared to its current unlisted trading price.
Currently, Waree’s unlisted shares are trading in the range of Rs 2,700 to Rs 2,750. This marks a substantial increase from around Rs 800 per share in August 2023, highlighting a remarkable growth trajectory of nearly 300% over the past year.
Analysts believe that the sharp rise in the unlisted stock price is largely driven by positive market sentiment surrounding the company’s anticipated listing on stock exchanges. This speculation has contributed to heightened investor interest.
In addition, the grey market premium for Waree Energies is trading at approximately Rs 1,280, which is about 85% higher than the IPO price band. This indicates strong demand in the unofficial market as investors await the official listing.
Waree Energies is not the only company to set a price band significantly lower than its unlisted market price. Recent IPOs from companies like AGS Transact, UTI Asset Management, PB Fintech, and Tata Technologies have also taken a similar approach.
For instance, AGS Transact listed in January 2022 with a price band of Rs 185-195 per share, while its unlisted shares were trading at around Rs 550 before the IPO. This pricing strategy reflects a common trend among companies aiming to attract investors.
Similarly, UTI Asset Management Company set its IPO price band at Rs 552-554 per share, even though its unlisted shares were valued at around Rs 1,100 prior to the offering. Such strategies have become increasingly prevalent in the market.
PB Fintech, the parent company of the platform Paisabazaar, priced its IPO between Rs 940-980, despite unlisted shares trading at approximately Rs 1,900 just before its IPO. This trend illustrates a broader pattern of undervaluation in IPO pricing.
The upcoming IPO for Waree Energies will open for subscription on October 21 and close on October 23. Anchor bidding is set to begin on October 18, allowing institutional investors to secure shares ahead of the public offering.
The allotment process is expected to be finalized on October 24, with refunds and share credits to demat accounts scheduled for October 25. Waree Energies is aiming for a market debut on October 28.
The IPO consists of a fresh issue of Rs 3,600 crore and an offer for sale of up to 4.8 million shares from existing shareholders and promoters. At the upper end of the price band, the total issue size could reach approximately Rs 4,321 crore, resulting in a market capitalization of around Rs 43,000 crore.
Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital are serving as lead managers for the IPO, assisting the company in navigating this critical financial milestone.
