Madhu Kela‘s wife, Madhuri, owned 33,41,700 shares, or 1.27% equity in Waaree Energies. Disclosures made by the company in its red herring prospectus (RHP) show that Kela participated in a private placement in June 2023 and purchased 7.25 lakh shares at Rs 550 per share.
Details of his previous investments in Waaree are not in the public domain, but he is believed to have invested in the company earlier in 2022 during previous fundraising rounds.
Even at Rs 550, Kela made a substantial notional profit of 364% in just 16 months, as the stock listed at Rs 2,550 on the BSE, representing a 69.7% premium over its issue price of Rs 1,503.
Similarly, Ravi Dharamshi’s ValueQuest Scale Fund was also allotted 909,091 shares at Rs 550 each during the private placement. Other investors include Niveshaay Hedgehogs.
Also Read: Waaree Energies shares list at 70% premium over IPO priceWhile the Waaree IPO created history on Dalal Street with the highest number of applications (97.34 lakh), there were hardly any takers when the promoters attempted to launch the IPO in September 2021, resulting in a lack of success.”That is the point at which we bought and then these shares started getting traded in the secondary market. Before the IPO, Waaree shareholding had not had any institutional shareholder besides ValueQuest,” Dharamshi told ETMarkets.
His PMS firm has backed Waaree in two fundraising rounds.
Also Read: Waaree Energies shares drop 10% post listing. Should you buy them?
“We are very very bullish on the energy trend, confluence of energy transition, China plus one, and manufacturing in India. So these are the three trends that are going to give birth to manufacturing giants in India. And Waaree is displaying the characteristics of a leader over here,” the fund manager said.
“The opportunity is still unfolding and it is at an early stage. I believe in the entrepreneur and his vision and his ability to navigate the changes in the industry. So I’m going to stay invested as long as those beliefs are not shaken,” he said.
Market analysts believe the stock can deliver healthy returns post listing as well.
“We believe long-term investor demand will continue at this counter, driven by sector demand and expansion plans. There is an opportunity to invest in the largest manufacturer of solar PV modules in India, bolstered by favorable government policies and various incentive (PLI) schemes. Therefore, we recommend that long-term investors hold, while short-term investors can aim for a target between Rs 2,750 and Rs 2,800 to book profits. Fresh accumulation can be considered in the range of Rs 2,200 to Rs 2,300 if the opportunity arises due to market conditions and profit-booking attempts,” said Prashanth Tapse of Mehta Equities.
