India’s Largest Solar PV Manufacturer Aims to Expand Capacity with New Odisha Facility, Shares Trading at ₹1,426 Grey Market Premium
BILKULONLINE
Ahmedabad, Oct 19: Waaree Energies Limited, India’s largest manufacturer of solar photovoltaic (PV) modules with an installed capacity of 12 GW, is gearing up for its initial public offering (IPO), which will be open from October 21 to October 23, 2024. The company has set a price band of ₹1,427 to ₹1,503 per equity share for the Book Built Issue, aiming to raise ₹4,321.44 crores through the IPO.
This includes ₹3,600 crores from the issuance of fresh shares and ₹721.44 crores via an offer for sale (OFS) of 4.8 million shares, each with a face value of ₹10. The shares are set to list on both BSE and NSE on October 28, 2024, with the allotment finalization on October 24.
The company, which started operations in 2007, focuses on delivering sustainable and cost-effective energy solutions through its solar PV modules, thereby contributing to a reduced carbon footprint. Its operations span five manufacturing facilities: Surat, Tumb, Nandigram, Chikhli in Gujarat, and Indo Solar Facility in Noida, making it a leader in the domestic solar PV module market. For the fiscal year 2024, Waaree Energies reported the second-highest operating income among Indian solar PV manufacturers.
Waaree’s IPO arrives at a time when market sentiment is positive, as indicated by the grey market, where the company’s shares are trading at a premium of ₹1,426. The IPO is structured to allocate 35% of the shares to retail investors, 50% to Qualified Institutional Buyers (QIBs), and 15% to High Net-Worth Individuals (HNIs). The proceeds will be used to part-finance the establishment of a new 6 GW manufacturing facility for ingot wafers, solar cells, and solar PV modules in Odisha, with the remaining funds allocated for general corporate purposes.
The company’s financial performance has shown significant growth, with revenue reaching ₹11,632.76 crores in FY2024, up from ₹6,860.36 crores in FY2023. Net profit also saw a substantial increase, rising to ₹1,274.38 crores from ₹500.28 crores over the same period. The company’s asset base expanded from ₹74,199.20 million in FY2023 to ₹1,13,137.28 million in FY2024, while liabilities increased from ₹55,815.10 million to ₹72,259.15 million. Despite the growth in liabilities, Waaree’s financial health remains strong, as reflected in a declining debt-equity ratio, which improved from 0.15 in FY2023 to 0.08 in FY2024, and further to 0.06 by June 2024.
The IPO is led by a group of experienced promoters, including Hitesh Chimanlal Doshi, Virenchimanlal Doshi, Pankaj Chimanlal Doshi, and Waaree Sustainable Finance Private Limited (formerly known as Mahavir Thermoequip Private Limited). The offering is being managed by Axis Capital Limited, IIFL Securities Limited, and Jefferies India Private Limited, who are serving as the lead managers.
Waaree’s robust growth trajectory and market leadership position in India’s solar energy sector align with the country’s expanding renewable energy ambitions. However, potential investors should consider factors such as market conditions and execution risks related to the new Odisha manufacturing facility. The positive grey market premium suggests strong demand for the shares, while the company’s financial metrics, including revenue growth, low debt, and strategic expansion plans, provide a compelling case for both short-term and long-term investment opportunities.
Disclaimer: This IPO news report is for informational purposes only and does not constitute financial or investment advice.
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