Waaree Energies Limited is launching its IPO as a book-built issue, consisting of a fresh issue worth ₹3,600 crore and an offer for sale of 0.48 crore shares. Waaree Energies IPO is scheduled to open for subscription on October 21, 2024, and will close on October 23, 2024. Investors can expect the allotment to be finalised on October 24, 2024, with the company's shares listed on both BSE and NSE. The tentative listing date is October 28, 2024. The IPO price bands are yet to be disclosed.
The issue is being managed by a group of lead managers, including Axis Capital Limited, IIFL Securities Ltd, Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, SBI Capital Markets Limited, Intensive Fiscal Services Private Limited, and ITI Capital Ltd. Link Intime India Private Ltd has been appointed as the registrar for the issue.
Industry Outlook
- India's solar energy market is projected to grow at a CAGR of 13.4%, reaching a value of USD 24.9 billion by 2030, from USD 10.4 billion in 2023.
- India's solar cell exports surged from $54.4 million in August 2022 to $253 million in August 2023, with the US accounting for 98% of exports.
Waaree IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Part finance the cost of establishing the 6GW of Ingot Wafer, Solar Cell and Solar PV Module manufacturing facility in Odisha, India by way of an investment in the wholly owned subsidiary, Sangam Solar One Private Limited (“Project”).
- General Corporate Purposes.
About Waaree Energies Limited
Incorporated in December 1990, Waaree Energies Limited is a leading Indian manufacturer of solar photovoltaic (PV) modules, with a total installed capacity of 12 GW. The company's product portfolio includes multicrystalline, monocrystalline, and TopCon modules, such as flexible bifacial modules (Mono PERC), framed, unframed, and building-integrated photovoltaic (BIPV) modules.
As of June 30, 2023, Waaree Energies operates four manufacturing facilities across Gujarat, India, covering 136.30 acres, located in Surat, Tumb, Nandigram, and Chikhli. The Tumb and Chikhli facilities hold ISO certifications for quality, safety, and environmental standards.
The company serves a diverse customer base, with 373 customers in India and 20 international clients as of June 2023. Waaree Energies' competitive strengths include its status as the largest solar PV module manufacturer in India, a robust order book, global accreditations, an extensive retail network, strong financial performance, and a skilled workforce of 1,019 employees.
How To Check the Allotment Status of the Waaree Energies IPO?
A: Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Waaree Energies IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Waaree Energies IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Waaree IPO
Registered office: 602, 6th Floor, Western Edge – I, Western Express Highway, Borivali (East), Mumbai - 400 066, Maharashtra, India
Phone: +91 22 6644 4444
E-mail: investorrelations@waaree.com
Financial Performance of Waaree Energies
| Particulars | As of March 31, 2024 | As of March 31, 2023 | As of March 31, 2022 |
|---|---|---|---|
| Revenue from Operations (₹ in million) | 113,976.09 | 67,508.73 | 28,542.65 |
| Net Profit for the Year / Period (₹ in million) | 12,743.77 | 5,002.77 | 796.50 |
| Net Worth (₹ in million) | 40,748.37 | 18,254.13 | 4,273.51 |
| Return on Equity (%) | 30.26% | 26.26% | 17.69% |
| Return on Capital Employed (%) | 26.29% | 31.61% | 21.89% |
| Debt-Equity Ratio (x) | 0.08 | 0.15 | 0.72 |
| Order Book in GW | 19.93 | 18.06 | 3.28 |
| Earnings Per Share (₹) | 48.05 | 21.82 | 3.84 |
| Inventory Turnover ratio (x) | 3.31 | 3.17 | 5.11 |
Know before investing
Strengths
6Largest solar PV module manufacturer in India with 12 GW capacity.
Strong financial performance with revenue growing at 99.83% CAGR.
Diversified global customer base and robust order book of 16.66 GW.
Extensive pan-India retail network with 369 franchisees as of 2024.
ISO-certified advanced manufacturing facilities ensure global quality standards.
A backward integration strategy enhances efficiency and reduces reliance on imports.
Risks
6Reliance on key customers; top 10 customers contribute 56.77% of revenue.
Significant liquidated damages incurred: ₹1,724.27 million in FY24.
High dependency on exports: 57.64% of revenue from export sales.
The cost of imported materials from China accounts for 54.08%.
Ongoing U.S. manufacturing expansion, estimated cost of $70 million.
Financing uncertainties: outstanding borrowings of ₹12,701.91 million as of 2024.
Waaree EnergiesIPO Peer Comparison Details
| Competitor | Face Value per Equity Share (₹) | Closing Price as on October 4, 2024 (₹) | EPS (Basic) (₹) | RoNW (%) |
|---|---|---|---|---|
| Waaree Energies Limited | 10 | NA | 48.05 | 30.36 |
| Websol Energy System Limited | 10 | 1,015.50 | (29.99) | NA |
| Premier Energies Limited | 10 | 1,047.40 | 6.93 | 37.46 |
