Waree Energies sets IPO price band at 45% discount to unlisted price

Waree Energies IPO : Waree Energies Ltd has announced a price band of Rs 1,427-1,503 per share for its upcoming initial public offering ( IPO ), marking a 45 per cent discount from its current unlisted price of Rs 2,700-2,750 per share. 

The company's shares in the unlisted market have seen a significant rise, from around Rs 800 in August 2023 to a record high of Rs 2,750 in September 2024—a nearly 300 per cent gain.

Analysts attribute this surge in Waree's unlisted stock price to anticipation of the company's listing on the stock exchanges. Interestingly, the IPO ’s grey market premium is trading at Rs 1,280, about 85 per cent higher than its price band.

This trend is not uncommon. Several companies, including AGS Transact, UTI Asset Management Co Ltd, PB Fintech, and Tata Technologies, have also set their IPO price bands lower than their prevailing unlisted market prices. For instance, AGS Transact's price band was set at Rs 185-195 per share, even though its unlisted stock traded at Rs 550 before its January 2022 listing. Similarly, UTI AMC's September 2020 price band was Rs 552-554, while its unlisted shares were valued at around Rs 1,100. PB Fintech set its price band at Rs 940-980, despite shares quoting at Rs 1,900 before its IPO, and Tata Technologies offered its IPO at Rs 475-500, a 47.4 per cent discount to the Rs 950 price in the unlisted market.

Waree Energies' IPO will be open for subscription from 21 to 23 October, with anchor bidding starting on 18 October. The allotment will be finalised on 24 October, followed by refunds and share credits to demat accounts on 25 October. The company is set to debut on the stock exchanges on 28 October.

The IPO consists of a fresh issue worth Rs 3,600 crore, alongside an offer for sale of up to 4.8 million shares by existing shareholders and promoters. Based on the upper price band, the total issue size is expected to be around Rs 4,321 crore.

Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital are the lead managers for the issue.