Waaree brighter than Deepak

Two new listings on the bourses today. First, the one which is doing exceedingly well - Waaree Energies. As against the IPO price of Rs.1503, the stock got listed at Rs.2550, a premium of 70% and is now trading at Rs.2325 levels.

The IPO had got a very good response, especially from the QIBs, whose portion was subscribed almost 209x, followed by HNIs at 62.48x and Retail at 10.79x. Overall the issue was subscribed by a good 76.3x.

The company with 13.3 GW installed capacity across Gujarat and Noida, is India’s largest solar photo voltaic (PV) modules manufacturer, ahead of Adani Mundra (4 GW), ReNew Power (4 GW), Saatvik (3.8 GW), Vikram (3.5 GW), Renewsys (2.8 GW), Goldi (2.5 GW), Premier (2.4 GW) among others. It manufactures modules using all 3 technologies – multicrystalline, monocrystalline and the efficient TopCon (flexible, Mono PERC and BIPV), with 43% capacity utilisation in FY24. Waaree is India’s largest solar module exporter, with exports accounting for 40% of Q1FY25 topline.

Our conclusion for Waaree - Huge opportunity in renewable energy space, coupled with attractive issue pricing make the IPO of Waaree Energies an ‘apply’.

Now the one which is not doing too well – Deepak Builders.

The stock got listed on the BSE at Rs.198.50, below its IPO price of Rs.203 and is currently trading at Rs.171 levels.

The IPO was overall subscribed 41.54x, with HNIs taking the lion’s share at 82.47x, Retail at 39.79x and QIBs at 13.91x.

Our conclusion - Weak fundamentals make this IPO an ‘avoid’.