Share Allotment for Waaree Energies Ltd IPO and Ways to Check Allotment Status

The bidding for the initial public offering of Waaree Energies Ltd closed on 23rd October. Through its IPO, the company planned to raise ₹4231.44 crores. The IPO saw good participation across investors, including qualified institutional buyers (QIBs), retail individual investors and non-institutional investors, among others.

The share allotment has been finalised following a robust market response, and those who have allotted the shares have received a debit message from their banks regarding the allotment. However, if you have applied for Waaree’s shares but have not received a message, you can expect it soon.

As per the company’s red herring prospectus:

• Not more than 50% of the net offer size shall be allocated to qualified institutional buyers
• Not less than 15% of the net offer size shall be allocated to non-institutional investors
• Not less than 35% of the net offer size shall be allocated to retail individual investors

Objective of the IPO / Use of Proceeds

The proceeds from the IPO will be used to partially finance the 6 GW Ingot Wafer, Solar Cell, and Solar PV Module manufacturing facility in Odisha. In addition, the proceeds will be used for general corporate needs.

Risks Mentioned in the RHP

Some of the risks mentioned in the RHP of the Waaree Energies are as follows:

1. Export Market Dependence: The business has a heavy reliance on export sales, especially to the United States, exposing revenue to policy or demand shifts.

2. Regulatory and Policy Risk: The proposed project is dependent on government subsidies, and any changes or reduction in them can have a drastic impact on the business. The company may have to raise additional capital, which can impact its cash flows, operations, and financial conditions.

3. Capital Expenditure and Execution Risk: A significant portion of the proceeds will fund the proposed 6GW facility through subsidiary Sanga, Solar One Private Limited. This can lead to delays in implementation, cost overruns, and other execution-related uncertainties.

4. Dependence on Key Customers: The business depends on certain key customers, with a major portion of its revenue being generated from 10 customers. Hence, losing one could drastically impact the financial performance of the company.

5. US Expansion Execution Risk: The manufacturing expansion in the United States via the subsidiary named Waaree Solar America Inc. is subject to internal accruals and requires approval for financing.

6. Liquidation Damages Risk: The customer contracts come with liquidated damage clauses, and the company has incurred such claims in the recent period. Being unable to reduce these debts can harm the company's financial health and performance.

7. Franchise Dependency Risk: The growth in commercial, residential, and industrial retail sales depends on strong franchise relationships. Failure to retain or expand the franchise network can adversely impact business performance, cash flows, and operational results.

8. Import and Trade Policy Risk: The company's reliance on material imports from China makes it vulnerable to changes in trade policy, levies, and import restrictions.

How to Check Allotment Status?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar — Link InTime India Pvt Ltd. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Waaree Energies Ltd
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the LinkIntime website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Waaree Energies Ltd from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

Why is Waaree Energies IPO Allotment Status Important?

By having information on the status of Waaree Energies IPO allotment, investors can proceed to take their next steps with confidence and clarity. In case of issuance of shares, the same is transferred into the Demat account prior to the listing date. Otherwise, the frozen fund is credited back.

The allotment status also assists individuals in making quality investment decisions. An allotment allows you to acquire the stock at a discounted rate, particularly in the case of a robust listing. In case no shares are issued, investors may consider purchasing shares following listing or transferring their funds to other IPOs.

What Happens After Allotment?

Once the Waaree Energies IPO allotment status is made public, if shares were allotted to you, you should check your Demat accounts to make sure you received the allotment. Usually, the allotted shares are credited one to two days before the listing date. You will also receive information from the depository participant.

If there is no assignment, the blocked funds are released and returned to your account.

If you have the allotment, you should be ready for listing day, depending on what you want to do. Some may want to make early gains if the company lists at a premium, while others may want to stay on for long-term growth. Both methods are fine, but knowing the allotment status ahead of time helps investors prepare with confidence and prevent last-minute confusion.

What are Analysts' Predictions for Waaree Energies?

A majority of analysts believe that Waaree Energies would perform effectively in the next year, and there would be room to grow. Analysts have an average target price of 3,501.21. This implies that the share could increase by a margin of 30 to 35% of its current price.

The maximum price projections are approximately ₹4,610, and the minimum is around ₹2,109. The majority of the brokerages rate the stock either as Buy or Outperform, depending on the growth potential, expansion capacity, and earnings momentum. A few, however, warn about dangers and value.

In Conclusion

If you get the allotted shares bidded for, your Demat account will get credited with the shares, and money will be debited from your bank account. If not, your application amount will be refunded. If you have not received the allotment, don’t get disheartened. You can buy the shares when they get listed in the secondary market on 28th October.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Neo Research Team, nor is it a report published by the Kotak Neo Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.