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Waaree Energies Files DRHP with SEBI for IPO Worth Rs. 1350 Cr

05 August 20226 mins read by Angel One
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Waaree Energies, a Mumbai-based solar module manufacturer, has filed its DRHP for initial public offering (IPO) comprising a fresh issue worth Rs. 1,350 crores. The issue will also have an OFS of 40,07,500 equity shares by promoters.

The company intends to use around Rs. 978.36 crores to set up a 2 GW/year solar cell producing facility in Chikhli, Gujarat. It also will use around Rs. 184.23 crores to set up a 1 GW per annum solar PV module unit. The rest of the proceeds will be used for general corporate purposes.

Let us look into the details of the company, Waaree Energies and its upcoming IPO.

About the Company- Waaree Energies Ltd

Founded by Hitesh Doshi in 2007, Waaree Energies is India’s largest solar module manufacturer with a total capacity of 2 GW per annum. It currently operates three manufacturing facilities at Surat, Nandigram and Tumb.

The solar energy company also has an EPC (engineering, procurement and construction) business with a presence in around 68 countries. Waaree Energies provides PV modules, utility grids, inverters, KW rooftop solutions and portable kits. Additionally, it provides rooftop solutions, solar water pumps and participates in project development.

The company’s client list includes names like Aditya Birla Group, Bharat Petroleum, Reliance Industries, BHEL, Larsen & Toubro, Hero Future Energies, etc. It also has several international customers like ENEL, Aldo Energy, ReneSola, EDF Renewables, Idemitsu, etc., in the US, Japan, UK and Egypt.

Waree Energies has used Government of India-led initiatives like Make in India and Aatmanirbhar Bharat to boost solar PV module production. The company has installed 14 million solar panels with a total capacity of 4 GW in solar parks. It sells mainly to B2B clients but has over 350 franchised outlets to deal with end-user consumers, requiring rooftop installations.

More Details of the Waree Energies IPO

The IPO will comprise a fresh issue of 40,07,500 equity shares worth Rs. 1350 crores and an offer for sale (OFS) by existing promoters and shareholders. The OFS will consist of the sale of:

  • 13,15,000 shares by Mahavir Thermoequip, Viren Chimanlal Doshi and Hitesh Chimanlal Doshi and others

Waaree Energies is the promoter of the listed Waaree Renewable Technologies, holding a 55.28% stake. The following are the book running lead managers (BRLM) of this IPO:

  • Axis Capital
  • ICICI Securities
  • Intensive Fiscal Services
  • HSBC Securities and Capital Markets (India)

The company may consider raising Rs. 270 crores via pre-IPO placement. If this happens, the IPO size will be reduced accordingly. It will use the net proceeds from the IPO to set up a 2 GW per annum solar cell and a 1 GW per annum solar PV module production facility in Degam village, Chikhli, Gujarat.

Financial Status

Waaree Energies has the highest installed capacity of solar module manufacturers with 2 GW of current capacity. It recorded a Rs. 2000 crores turnover despite a pandemic-induced economic slowdown. The company will increase its capacity to 5 GW by December 2021 and hopefully triple its revenue.

As of 31 March 2021, the company’s revenue from operations was at Rs. 1952.78 crores, compared to Rs. 1995.78 crores in the previous year. Its net profits stood at Rs. 48.19 crores, against Rs. 39.02 crores a year ago.

The following table gives the financial statement as of 31 March 2020 (All figures are in INR million)

Particulars As of 31 March 2020 As of 31 March 2019
Non-current Assets 2841.37 2184.37
Current Assets 5663.65 5697.57
Total Assets 8505.02 7881.94
Total Equity 3030.47 2610.81
Non-current Liabilities 875.22 853.82
Current Liabilities   4599.33 4417.32
Total Equity and Liabilities 8505.02 7881.94
Total Income 20504.45 16222.63
Expenses 19896.25 15638.72
Net Profit/Loss for the Period 453.73 379.72
Earnings per share 2.28 1.95

Wrapping Up

Waaree is already India’s largest player in the solar energy industry. With the Indian Government running the largest clean energy programme in the world, the company is making all preparations to supply for the upcoming demand.

The IPO will likely see a return on investments if everything goes according to plan. However, investors should never forget that equity investments like these always carry high risks.

 

Frequently Asked Questions

  1. When are the proposed manufacturing facilities going to be operational?

The proposed 3 GW solar module production facility is likely to open up by 2022. Another 4 GW of solar cell production capacity is likely to be operational by 2023.  

  1. What are the opening and closing dates of this IPO?

The company has just filed the DRHP to SEBI for approval. Once that happens, we will know about the particulars of this IPO.

  1. Is Waaree Energies involved in any projects outside India?

Yes. Waaree has recently completed a 300MW solar PV project for Westlands Solar Park in California, US. It has supplied over 3 GW of solar panels globally and completed various EPC projects in Southeast Asia.

 

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