Waaree Energies Files DRHP to Raise Rs 3,000 Crore via IPO

Waaree Energies, a pioneering force in India’s solar photovoltaic (PV) module manufacturing sector, has taken a significant leap forward by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India.

The company stands out with an impressive aggregate installed capacity of 12 GW in solar PV modules, reaffirming its position as an industry leader. With a diverse portfolio comprising multi-crystalline modules, monocrystalline modules, and TopCon modules, it is committed to cutting-edge technology and innovation in renewable energy.

It operates four manufacturing facilities across India, spanning 136.30 acres collectively, reaffirming its commitment to domestic production and contributing to India’s self-reliance in renewable energy infrastructure. During the FY23, the company has secured the second-highest operating income among domestic solar PV module manufacturers.

IPO Details:

The IPO entails a fresh issue of equity valued at Rs 3,000 crore alongside an Offer for Sale of 32 lakh shares. This offering includes 27 lakh shares from Waaree Sustainable Finance, 4.5 lakh shares from Mahavir Thermoequip, and 50,000 shares from Chandurkar Investments.

Structured through the book-building process, the IPO reserves 50% of the issue for qualified institutional buyers, while 35% is allocated for retail investors and the remaining 15% for non-institutional investors. The company’s strategic move to diversify its investor base reflects its confidence in attracting a spectrum of stakeholders who share its vision for sustainable energy solutions.

Objects of Proceeds:

The company aims to leverage these funds for the establishment of a cutting-edge 6GW Ingot Wafer, solar cell, and solar PV module manufacturing facility in Odisha, furthering its technological prowess and market presence. Additionally, these funds will be allocated for general corporate purposes, reinforcing Waaree Energies’ commitment to technological advancement and market expansion.

Financial Performance:

Waaree Energies’ remarkable financial performance speaks volumes about its growth trajectory. With an astounding revenue growth at a CAGR of 86% from Rs 1,953 crore in FY21 to Rs 6,751 crore in FY23, the company exhibits robust financial health and operational efficiency. In June quarter of FY24, the company reported revenue from operations at Rs 3,328 crore and a profit of Rs 338 crore, highlighting its strong financial standing.

Order Book and Market Position:

The company’s stronghold in the market is further evidenced by its substantial order book, which stands at 20.16 GW as of November 2023. This includes diverse orders encompassing domestic, export, franchisee orders, and 3.75 GW for its subsidiary, Waaree Solar Americas Inc. Waaree Energies’ extensive market penetration and operational excellence position it favourably to cater to the growing demand for solar energy products, both domestically and globally.

Conclusion:

Waaree Energies’ IPO launch marks a significant milestone in its journey towards sustainable energy solutions. With its strong financial performance, robust order book, and strategic allocation of IPO proceeds, the company is poised to capture the attention of investors seeking to participate in the burgeoning renewable energy sector. Backed by a consortium of esteemed book-running lead managers, the IPO signifies investor confidence in Waaree Energies’ growth potential and commitment to driving the solar energy revolution.