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Published: November 5, 2024
Updated: November 5, 2024

Waaree Energies' Shares Surge 131% Since IPO, Market Momentum Shows No Signs of Slowing

Record-Breaking Rally in Waaree Energies' Shares

Recently-listed solar power company Waaree Energies Ltd saw its shares continue an impressive rally on Tuesday, with prices surging 19.52% to reach an all-time high of Rs 3,570.95. By the end of the day, the stock settled at Rs 3,475.30, marking a 16.32% increase. This brings the stock’s total rise to a remarkable 131.22% above its initial public offering (IPO) price of Rs 1,503, following a strong listing debut on October 28.

Consistent Gains Amid High Trading Activity

Waaree Energies has consistently closed in positive territory since its debut, showcasing robust investor interest. On Tuesday, trading volume on the BSE reached approximately 8.33 lakh shares, surpassing the two-week average of 7.81 lakh shares. The stock also achieved a turnover of Rs 271.32 crore, contributing to a market capitalization of nearly Rs 99,839.53 crore. Both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) have placed Waaree Energies under the Additional Surveillance Measure (ASM) framework to signal its high volatility.

Market Analysts Weigh In on Waaree Energies’ Stock Momentum

With rising global interest in green energy, especially solar power, Waaree Energies has become a hot stock for risk-tolerant investors. “The stock remains in the momentum zone and has shown a stellar rally," noted Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. Bathini advised cautious investment, suggesting that high-risk investors may consider entering at current levels, while long-term investors should wait for quarterly earnings reports.

Ameya Ranadive, Senior Technical Analyst at StoxBox, commented on the stock's technical strength, stating that Waaree Energies is exhibiting a “higher top, higher bottom” pattern, signaling continued upward momentum. Ranadive forecasted a potential target range of Rs 3,800-4,000, with minor support at Rs 2,800-2,850.

In contrast, Ravi Singh, Senior Vice President of Retail Research at Religare Broking, recommended profit-booking at current levels, given the substantial rally from the IPO price.

Strong Debut for Waaree Energies IPO

Waaree Energies conducted its IPO between October 21 and October 23, successfully raising Rs 4,321.44 crore. This amount included a fresh share issuance worth Rs 3,600 crore and an offer-for-sale (OFS) of 48 lakh equity shares. Prominent financial institutions, including Axis Capital, Jefferies India, and SBI Capital Markets, led the offering, with Link Intime India acting as registrar.

Company Profile and Solar Market Expansion

Founded in 1990, Mumbai-based Waaree Energies is a leading solar PV module manufacturer with an installed capacity of 12 GW. The company’s product range includes a variety of solar energy products, such as multicrystalline, monocrystalline, and TopCon PV modules, catering to the growing demand for renewable energy solutions.

With sustained growth since its IPO, Waaree Energies’ stock reflects both the investor interest in renewable energy and the company’s strong market positioning in solar manufacturing. Given the ongoing momentum, analysts advise that while high-risk investors may consider capitalizing on short-term gains, more conservative investors might wait for future earnings reports to evaluate long-term potential.