Madhusudan Kela-backed Waaree Energies shares rally up to 9x in two years ahead of IPO

Madhusudan Kela-Backed Waaree Energies Witnesses Phenomenal 9x Rally in Two Years.

Expert Analysis:

• Exceptional Growth Trajectory and Industry Leadership: IPO bound Waaree Energies has delivered multi-bagger returns with its stock prices surging about nine-fold in the unlisted market within two years, attracting investments from Dalal Street veterans.

• Operations:The flagship company of Waaree Group outshines in solar PV Modules manufacturing & providing comprehensive solar solutions in India, along with holding a prominent position in solar panel manufacturing, EPC services, project development, rooftop solutions, among others.

• Pre-IPO Surge: Waaree Energies underwent a pre-IPO placement in late 2022, selling shares at Rs 225 each. The stock recently soared to Rs 2,000, marking a remarkable 788% increase.

• Kela's Investment: In June 2023, prominent investor Madhusudan Kela bought 7,25,000 shares at Rs 550 per share, investing Rs 39.88 crore for a 1.28% stake.

• Financial Performance: Waaree Energies reported a robust profit-after-tax (PAT) of Rs 501 crore and revenue of Rs 6,840 crore for FY23, demonstrating significant growth compared to FY22 (PAT:Rs 79 crore, Revenue: Rs 2,950 crore) and FY21 (PAT: Rs 47 crore, Revenue: Rs 1,997 crore).

• Market Outlook: Sandip Ginodia, CEO of Altius Investech, praises Waaree Energies as a key beneficiary of the expanding solar sector. Dinesh Gupta, Co-founder of UnlistedZone, notes the company's strong pre-IPO market premium, driven by government initiatives in renewable energy, and predicts a FY23-24 revenue surpassing Rs 10,000 crore, with a PAT around Rs 1,500 crore, supported by growing order books.

• IPO Details: In December 2023, it filed its Draft Red Herring Prospectus (DRHP) with SEBI for IPO. It plans to offer fresh shares worth Rs 3,000 crore and an offer-for-sale (OFS) of up to 32,00,000 equity shares. Market sources suggest the company aims to raise Rs 3,500-3,700 crore through the IPO.

• IPO Expectations: Gupta foresees the IPO price band to be aproxx Rs 1,200-1,400, based on FY24 results & attributes the premium in the unlisted markets to limited IPO allotment, and expects strong demand if market conditions remain stable.