Waaree Energies Slides 9% as 15 Crore Shares Hit the Market Post Lock-In

The market paused the 7-day winning streak for the primary indices as of April 24, 2025, when NIFTY and SENSEX ended 0.34% and 0.39% lower, respectively. The trend continued today as the index fell further in response to recent geopolitical events and prevailing global cues.

What held the limelight amidst the ongoing trend is also Waaree Energies Limited’s stock price, which dived steeply by 9% after the lock-in period ended on 25th April 2025. Did the shares fall solely due to the expiration of the lock-in period, or are there other factors at play? Let’s understand. 

Company Overview

Waaree Energies Limited is India’s largest manufacturer and exporter of solar PV modules. Founded in 1990 in Mumbai as part of the Waaree Group, the company initially focused on instrumentation, producing pressure gauges and valves. In 2007, it entered the solar energy sector by setting up a 30-MW solar module manufacturing facility. Since then, it has expanded its capacity to 12,000 MW.

Waaree holds a 44% share of India’s solar module export market and reported 57.77% of its FY 2023–24 revenue from exports, totaling Rs . 6,569.09 crore. As of 31st March 2024, its order book stood at 19,928.12 MW.

The company operates in both domestic and international markets and is involved in module manufacturing, EPC services, and energy project development. In FY2024, the company-

• Commissioned 1.9+ GW of solar energy projects
• Executed 704 MWp of EPC projects
• Commissioned 1.3 GW of capacity at the Indo Solar facility
• Secured 300 MW capacity for electrolyser manufacturing under the PLI scheme
• Planning a 1.6 GW module manufacturing facility in the United States

During the year 2023-24, the company also recorded a net profit of Rs. 1,274.37 crore, along with a revenue of Rs. 11,397.60 crore. Furthermore, the net worth of the company reached Rs . 4148.48 crore in FY2024. 

Waaree Energies Limited Share Price

Waaree Energies launched its initial public offering (IPO) in October 2024. The IPO was open for subscription from October 21st to 23rd, and the shares were listed on the stock exchanges on 28th October 2024.

Waaree Energies IPO Details:

Particulars	Details
IPO Open Dates	October 21 – October 23, 2024
Listing Date	October 28, 2024
Issue Price	Rs.1,503 per share
Listing Price (NSE)	Rs.2,500
Listing Price (BSE)	Rs.2,550
Total Issue Size	Rs.4,321.44 crore
Fresh Issue	Rs.3,600 crore
Offer for Sale (OFS)	Rs.721.44 crore

On the first day of trading, the shares closed at Rs.2,338.90 on the NSE. The IPO received significant interest from various investor categories. The issue was subscribed 76.34 times in total, with Qualified Institutional Buyers (QIBs) subscribing 208.63 times, Non-Institutional Investors (NIIs) at 62.48 times, and the Retail Individual Investors (RIIs) segment at 10.79 times. The IPO, although successful, came with a lock-in period of around six months. 

Lock-In Period Of Waaree Energies Shares

In the Indian stock market, a lock-in period refers to a specific duration following an initial public offering (IPO) during which select shareholders, including promoters, pre-IPO investors, and anchor investors, are restricted from selling their shares. The purpose of this mechanism is to prevent a sudden increase in share supply, maintain price stability, discourage insider-driven sell-offs, and build market confidence. SEBI regulations define the lock-in durations as follows:

• Promoters: 18 months (for up to 20% of post-issue capital)
• Pre-IPO Investors: 6 months
• Anchor Investors: 30 to 90 days

When a lock-in period ends, a large volume of shares may enter the market as restricted shareholders gain the option to sell. This can lead to increased trading volumes and potential downward pressure on the stock price if supply outpaces demand. For instance, companies like NTPC Green Energy (a 4% price drop) and Exicom Telesystems (a nearly 70% correction from its post-listing high) experienced noticeable price drops after the lock-in expiry, often attributed to such sell-offs.

For Waaree Energies Limited, as the lock-in period ended on 25th April 2025, nearly 15 crore shares became eligible for trading. This triggered an immediate reaction in the market:

• End of day fall (25th April 2025): 5.75%
• Intraday low: Rs . 2590.20 (nearly 9% down)
• Closing: Rs . 2676.5

Other Possible Underlying Reasons for Share Price Trend:

Brokerage Downgrade (Jefferies):

Jefferies downgraded Waaree Energies to ‘underperform’ with a target price of Rs.2100. The downgrade came after the stock surged 25% in the month before April 24. The firm cited concerns over a likely decline in US imports in FY26 due to high inventory and less favorable economics for non-DCR projects in India during the latter half of FY27. This weighed on investor sentiment and may have contributed to the decline in the stock’s value.

US Tariff Concerns:

In January, the stock had already experienced a sharp decline due to concerns about potential US tariffs on solar imports. These tariffs could slow down solar capacity expansion and impact Indian exporters, such as Waaree Energies. The news raised concerns over future demand in one of its key international markets.

Sector and Market Trends:

Apart from company-specific triggers, broader factors may also be in play. A general correction in the stock market or a change in sentiment in the renewable energy space may have contributed to the downward pressure on Waaree’s shares.

Bottomline:

The sharp decline in Waaree Energies’ stock after the lock-in expiry illustrates how market dynamics often reflect a combination of technical triggers and deeper investor sentiment shaped by macroeconomic factors and analyst outlooks. For investors, such movements serve as a reminder of the layered nature of stock price behaviour, where timing, perception, and fundamentals all play a role.

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

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