India’s largest solar-panel manufacturer, Waaree Energies Ltd., saw its $514 million initial public offering (IPO) fully subscribed within hours of its opening. This rapid success is fueled by the impressive rally in the nation’s renewable energy stocks, making it a standout year for the sector.
The company is now valued at $5 billion, with a price range of 1,427 to 1,503 rupees per share. Big names like Goldman Sachs, BlackRock, and Morgan Stanley have invested in the IPO, further boosting investor confidence. Shares will begin trading next week.
There was strong demand from both small-scale and high-net-worth investors, with multiple bids on shares reserved for them, highlighting the current investment frenzy in India, a global hotspot for dealmaking.
The participation of Wall Street giants underscores the growing appeal of India’s renewable energy sector, which has seen stock prices soar by up to 357% this year. Six of the top 10 performers in Bloomberg’s World Energy Index are Indian firms.
“Renewables is a large opportunity in India for the next three years,” noted Ramesh Mantri of WhiteOak Capital Asset Management.
This offering aligns with Prime Minister Narendra Modi’s ambitious plan to increase renewable energy production to 500 gigawatts by 2030. Despite the sector’s rapid growth, challenges remain, including high leverage and weak cash flows.