News

Published: November 7, 2024
Updated: November 7, 2024

Waaree Energies Skyrockets 149% Post-IPO; BSE, NSE Seek Clarification Amid Market Volatility

Strong Performance Since IPO Debut

Waaree Energies Ltd has captured significant investor interest, as its stock price reached a record high of Rs 3,740.75, reflecting a 148.89% increase from its IPO price of Rs 1,503. This rapid rise has been sustained over just eight trading sessions since its listing on October 28. Impressively, the stock has consistently closed in positive territory, marking one of the strongest IPO performances of the year.

Heightened Surveillance on Volatile Stock

Due to the intense price fluctuations, both the BSE and NSE have placed Waaree Energies under the short-term Additional Surveillance Measure (ASM) framework. This framework is intended to alert investors about elevated volatility levels, encouraging caution. Additionally, the exchanges have sought a clarification from Waaree Energies on the unusual stock price movements to provide investors with relevant information.

Company Statement on Price Movement

In response to the exchanges' queries, Waaree Energies stated there is no undisclosed or price-sensitive information that could be affecting its share price. The company clarified that the increased share price and volumes are entirely market-driven, not tied to any internal developments or impending corporate actions.

Investor Activity Remains High

On the BSE, trading volume was robust, with approximately 8.12 lakh shares traded on Wednesday—surpassing the two-week average of 7.88 lakh shares. The day’s turnover hit Rs 292.91 crore, raising Waaree Energies' market capitalization to over Rs 1.03 lakh crore. This activity shows a continued strong appetite for shares of the solar PV module manufacturer.

Analysts’ Views on Market Performance and Future Price Targets

The current rise is seen by many as reflective of the heightened interest in renewable energy and solar solutions. Investors with a high-risk tolerance may find the stock appealing at present levels. However, some suggest waiting for quarterly results for a clearer picture before making significant investments.

In terms of technical outlook, the stock's pattern is seen as bullish, with a potential near-term target of Rs 3,800-4,000. Some suggest there could be key support at the Rs 2,800-2,850 level, which may be an opportunity for buying on a pullback. Conversely, some recommend booking profits at current levels to secure gains.

About Waaree Energies

Founded in December 1990, Waaree Energies is a significant player in India's solar PV module market, with an installed capacity of 12 GW. Its recent IPO, conducted from October 21 to October 23, generated substantial market interest, underscoring confidence in its long-term growth potential.

Waaree Energies’ post-IPO performance highlights the broader market’s enthusiasm for renewable energy investments. For investors, this stock offers potential but also requires careful consideration amid high volatility. Accordingly, prospective buyers may want to weigh their risk tolerance and investment strategies closely.