Street signs: Waaree's blaze of glory, timing is everything and more

Waaree’s blaze of glory: IPO demand lights up with 90%+ GMP

Retail and affluent investors — who missed Hyundai Motor India’s mega offering — are now focusing on the Rs 4,321 crore initial public offering (IPO) of solar panel maker Waaree Energies. The company’s shares are commanding a grey market premium (GMP) of over 90 per cent, marking the highest for an IPO exceeding Rs 1,000 crore since Bajaj Housing Finance in September. Waaree’s IPO consists of a fresh fundraise of Rs 3,600 crore and an offer for sale of Rs 721 crore. The stock is priced at 33 times its 2023-24 earnings of Rs 1,274 crore. At the top end of the price band of Rs 1,503, Waaree will have a market capitalisation of Rs 42,939 crore. Waaree is India’s largest manufacturer of solar photovoltaic modules, boasting the largest aggregate installed capacity of 12 gigawatt. Meanwhile, Hyundai’s GMP suggests that the stock could list close to its issue price during its trading debut on Tuesday.

Timing is everything: PSU investors uncover costly market missteps

Public sector undertaking (PSU) stocks have been the season’s flavour over the past two years. Riding on this strong momentum, several small investors became large buyers of stocks like Canara Bank, Indian Renewable Energy Development Agency, and Bank of Baroda, with the retail investor count in these counters rising by 426,000, 370,000, and 286,000, respectively. However, most investors were caught off guard, as most PSUs have fallen over 20 per cent from their highs reached during the April-June quarter of the current financial year (2024-25).

Digital DNA: UDIs as security keys for unlocking online trading

The BSE and the National Stock Exchange have issued circulars mandating unique device identifiers (UDIs) for online orders, amid the growing use of mobile and web platforms for stock trading. This move, which increases the responsibility for brokers, aims to improve tracking and ensure regulatory compliance for trades executed through various electronic devices. “Currently, it has been observed that accounts belonging to different individuals are being managed through similar internet protocol addresses. This raises concerns about unauthorised trading and manipulation. The UDI will help curb this practice and ensure that clients place their orders from mobile or electronic devices in their possession,” explained a broker.