Waaree Energies Sets Ambitious Goals with Initial Public Offering (IPO) Filing

29 Dec 2023 , 02:15 PM

On December 28, Waaree Energies, a leading solar panel manufacturer, took a significant step toward furthering its growth trajectory by filing preliminary papers with the capital markets regulator SEBI for an upcoming initial public offering (IPO). The IPO, a combination of a fresh issue of shares and an offer-for-sale (OFS), reflects the company’s strategic vision for expansion and innovation.

The IPO comprises a fresh issue of shares valued at Rs 3,000 crore by Waaree Energies and an offer-for-sale of 32 lakh equity shares by existing shareholders. In the OFS, promoter entity Waaree Sustainable Finance, formerly known as Mahavir Thermoequip, will sell 27 lakh shares, while Chandurkar Investments and Samir Surendra Shah will offload 5 lakh shares. Currently, promoters hold 72.32 percent of the company’s shareholding, with the remaining 27.68 percent held by the public.

In September 2021, Waaree Energies had initially filed draft papers for an IPO, seeking to raise funds through a fresh issue of Rs 1,350 crore and an OFS of 40.07 lakh shares. While receiving approval from the regulator in January 2022, the company decided to withdraw the IPO papers later that year, possibly due to market volatility.

Waaree Energies plans to utilize the net proceeds from the fresh issue for the establishment of a 6-GW ingot wafer, solar cell, and solar PV module manufacturing facility in Odisha, along with addressing general corporate needs. The company, a pioneer in solar PV module manufacturing since its inception in 2007, has witnessed remarkable growth, boasting the largest aggregate installed capacity of 12GW as of June 2023.

The Gujarat-based firm reported impressive financials, with a staggering 538 percent YoY growth in net profit, reaching Rs 482.8 crore for the fiscal year ended March FY23. Revenue from operations surged by 136.5 percent to Rs 6,750.9 crore compared to FY22, showcasing a remarkable CAGR of 86 percent in revenue from FY21 to FY23.

For the quarter ended June FY24, Waaree Energies posted a net profit of Rs 336 crore on revenue of Rs 3,328.3 crore, indicating sustained financial robustness.

The company boasts a substantial order book of 20.16 GW of solar modules as of November 2023, including 3.75 GW of orders for its U.S. subsidiary, Waaree Solar Americas Inc. With four manufacturing facilities, Waaree Energies remains a key player in the solar energy sector, continuously expanding its capacity and geographical reach.

The IPO is facilitated by prominent merchant bankers, including Axis Capital, IIFL Capital Services, Jefferies India, Nomura Financial Advisory and Securities (India), SBI Capital Markets, Intensive Fiscal Services, and ITI Capital.