Waaree Energies, a leading solar energy stock in India, recently made headlines with its stellar debut on the stock exchanges. Some of Dalal Street’s most renowned investors, Madhusudhan Kela and Ravi Dharamshi, have been among the earliest backers of the company, positioning themselves for significant gains. As the company got listed on the BSE at a premium price, both Kela and Dharamshi witnessed multifold returns on their investments, showcasing the potential of strategic investments in the renewable energy sector.
Madhusudhan Kela’s Strategic Investment in Waaree Energies
Madhusudhan Kela’s early investment in Waaree Energies demonstrates his knack for identifying high-growth potential stocks. His wife, Madhuri Kela, held a 33,41,700-share stake in the company, accounting for 1.27% equity. Kela’s investment journey with Waaree began with a private placement in June 2023, where he acquired 7.25 lakh shares at Rs 550 per share. Although the specifics of Kela’s earlier investments remain under wraps, reports suggest that he initially invested in Waaree Energies during a fundraising round in 2022.
This investment decision turned out to be immensely profitable. Despite the initial purchase price of Rs 550, the stock listed at Rs 2,550 on the BSE, resulted in a notional profit of 364% in just 16 months. This incredible gain reflects the strength of Waaree Energies’ business model and the foresight of investors like Madhusudhan Kela.
Ravi Dharamshi’s Confidence in Waaree Energies’ Growth Potential
Another significant stakeholder in Waaree Energies is Ravi Dharamshi, founder of the ValueQuest Scale Fund. Like Kela, Dharamshi demonstrated unwavering faith in the solar energy stock when it was still under the radar. The ValueQuest Scale Fund secured 909,091 shares at Rs 550 each during the June 2023 private placement, further strengthening its position in the company. This bold move by Dharamshi and his firm highlights their strategic foresight in the rapidly evolving renewable energy market.
Dharamshi’s investment philosophy for Waaree Energies is based on his belief in the company’s leadership and its role in India’s energy transition. He emphasized that the confluence of energy transition, China Plus One, and Make in India trends would create a new wave of manufacturing giants in the country, with Waaree Energies being a prime example. The investment firm has backed Waaree in multiple fundraising rounds, recognizing the company’s long-term potential.
The Journey of Waaree Energies from IPO to Market Leadership
The journey of Waaree Energies to become a prominent player in the solar energy sector has been full of challenges. While the company’s IPO in 2021 faced difficulties and failed to gain traction, the scenario changed dramatically by 2023. The June 2023 private placement and subsequent listing saw immense interest from retail and institutional investors alike. The Waaree IPO became a historic event on Dalal Street, recording 97.34 lakh applications—a testament to the rising investor confidence in the company’s future.
Before the IPO, Waaree had no institutional investors other than ValueQuest Scale Fund, making its initial backers like Ravi Dharamshi instrumental in building credibility in the market. As the stock debuted at a 69.7% premium over its issue price of Rs 1,503, it signaled a strong market demand for shares of the largest manufacturer of solar PV modules in India.
Expert Views on Waaree Energies’ Future Performance
Market analysts are optimistic about the future of this industry in the stock market. Prashanth Tapse of Mehta Equities highlighted the importance of sectoral growth and the company’s expansion plans in driving long-term investor interest. He emphasized that favorable government policies, such as Production-Linked Incentives (PLI) schemes, will continue to support solar energy stocks like Waaree Energies.
According to Tapse, long-term investors should hold on to their shares due to the anticipated growth in the sector, while short-term investors can consider booking profits in the Rs 2,750 to Rs 2,800 range. He also advised that fresh accumulations could be considered if the stock price dips from Rs 2,200 to Rs 2,300, making it an attractive entry point for new investors.
Why Waaree Energies is Poised for Long-term Success
This Solar Industry stands at the intersection of India’s growing renewable energy sector and the push for domestic manufacturing. Its early supporters like Madhusudhan Kela and Ravi Dharamshi understood the potential of this solar energy stock and made strategic investments that are now yielding substantial returns. With India’s energy transition gathering momentum and government support fostering the growth of solar energy, Waaree Energies is well-positioned to benefit from these favorable trends.
Madhusudhan Kela and Ravi Dharamshi’s investments in Waaree underscore the importance of identifying early-stage opportunities in sectors that align with macroeconomic trends. Their belief in the company’s leadership, business model, and market positioning has been a crucial factor in their investment strategy. With solar energy emerging as a key driver of India’s growth story, Waaree Energies is set to continue delivering impressive returns to its investors.
In conclusion, the journey of this company from its early challenges to becoming a top solar energy stock is a testament to the power of strategic investments and the opportunities in the renewable energy sector. As Madhusudhan Kela and Ravi Dharamshi continue to hold faith in the company’s long-term potential, Waaree Energies’ story offers valuable insights into the potential of solar energy stocks in India.
