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. 

company's shares in 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 company's listing on stock exchanges. Interestingly, IPO ’s grey market premium is tring 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 ir IPO price bands lower than ir prevailing unlisted market prices. For instance, AGS Transact's price band was set at Rs 185-195 per share, even though its unlisted stock tred 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 Rs 950 price in unlisted market.

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

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 upper price band, total issue size is expected to be around Rs 4,321 crore.

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