Shares of Waaree Energies, which was listed on the domestic market last month, brought significant gains to investors, with the IPO nearly doubling their investments. However, the stock has seen a decline of more than 10% over the past two days following US President-elect Donald Trump's victory in the US presidential election 2024. On Friday, November 8, the stock price of Waaree Energies dropped 7% during, closing down by 6.68% at Rs 3,126.
The stock fell by 7.67% to Rs 3,100 during trading hours. Investors were initially allotted shares at a price of Rs 1,503, and Waaree Energies made its market debut on October 23. Recently, the stock reached a record high of Rs 3,740.75 on November 6, marking an impressive 149% increase in investor capital since the IPO.
Why Did Waaree Energies Shares Decline?
The decline in Waaree Energies' shares is attributed to fears of reduced renewable energy exports following President-elect Donald Trump’s speech after his victory in US election. The concern primarily affects companies that depend heavily on exports to the United States. In his victory speech, Trump stated his intent to curtail imports of renewable energy products once he takes office, which raised concerns among Indian exporters of solar modules and other renewable equipment.
Also Read | Sagility India IPO: Receives 0.9 Times Overall Subscription; Check GMP Price, Other Details.
Many Indian companies currently export solar modules to the US, and Trump's "America First" policy could impact these businesses, as the US imports a significant amount of solar panels from China.
What Are the Experts Saying?
Experts believe Trump's stance could affect Indian exporters of solar and renewable energy equipment. While the immediate impact might be limited, the medium-term effects—within three to four years—could be significant. As the president of the United States, Trump’s term is four years, and he is now in his second term, meaning he could serve no longer. Analysts suggest that Indian companies like Waaree Energies, for whom the US market is a substantial revenue source, may need to adjust their strategies in response to these changes.