Waaree Energies Limited, India's leading solar PV module manufacturer, is all set to make a significant entry into the stock market with its Initial Public Offering (IPO). The IPO is live for subscription from October 21, 2024, to October 23, 2024, with plans to raise ₹4,321.44 crores. This includes a fresh issue of 2.4 crore shares amounting to ₹3,600 crores and an offer for sale (OFS) of 0.48 crore shares, valued at ₹721.44 crores.

IPO Details

The price band for the Waaree Energies IPO has been set between ₹1427 and ₹1503 per share, with a lot size of 9 shares. Retail investors can make a minimum investment of ₹13,527 for one lot and a maximum of ₹189,378 for 14 lots. High Net-Worth Individuals (HNIs) have separate lot sizes based on their investment categories. Small NII (sNII) investors can apply for a minimum of 15 lots (135 shares), which will require an investment of ₹202,905, while large NII (bNII) investors can bid for a minimum of 74 lots (666 shares), amounting to ₹1,000,998.

Waaree Energies IPO will be listed on both the BSE and NSE, with the expected listing date set for October 28, 2024. The allotment date is likely to be October 24, 2024, and refunds and credit of shares to demat accounts will take place by October 25, 2024.

Company Background

Incorporated in December 1990, Waaree Energies Limited has established itself as a major player in the solar energy market. The company specializes in manufacturing solar PV modules with an impressive 12 GW capacity across its facilities in Surat, Tumb, Nandigram, and Chikhli, all located in Gujarat. These facilities collectively cover 136.30 acres and adhere to global quality standards, including ISO certifications.

Waaree Energies offers a diverse range of solar PV modules, including:

• Multicrystalline modules
• Monocrystalline modules
• TopCon modules like Mono PERC bifacial modules (both framed and unframed)

The company has steadily grown its customer base, serving both Indian and international clients. As of June 30, 2023, the company had 1,019 full-time employees and catered to 373 domestic and 20 international customers.

Financial Performance

Waaree Energies has demonstrated strong financial growth in recent years. Its revenue surged by 70%, and profit after tax (PAT) increased by 155% between FY23 and FY24. Here are some key financial metrics:

• Revenue: ₹11,632.76 crores (FY24) vs. ₹6,860.36 crores (FY23)
• Profit After Tax (PAT): ₹1,274.38 crores (FY24) vs. ₹500.28 crores (FY23)
• Assets: ₹11,313.73 crores (FY24) vs. ₹7,419.92 crores (FY23)
• Net Worth: ₹4,074.84 crores (FY24)

These impressive numbers underline Waaree Energies' ability to scale its operations and maintain profitability.

Competitive Strengths

Waaree Energies boasts several competitive advantages:

1. Largest Solar PV Module Manufacturer in India: With a capacity of 12 GW, Waaree Energies is the largest player in the Indian solar PV market.
2. Diverse Customer Base: The company has a large and diversified client portfolio, both in India and abroad.
3. Advanced Manufacturing: Equipped with cutting-edge technology and global certifications, Waaree Energies’ manufacturing facilities ensure high-quality production.
4. Extensive Retail Network: With a strong pan-India presence, the company can meet the growing demand for solar products.
5. Consistent Financial Performance: Waaree Energies has delivered a steady financial performance with significant growth in both revenue and profits.

IPO Reservation Details

Waaree Energies has reserved 28,752,095 shares for the IPO, distributed across different investor categories:

• Qualified Institutional Buyers (QIBs): 19.26%
• Non-Institutional Investors (NIIs): 15.21%
  • Small NII: 4.92%
  • Big NII: 10.29%
• Retail Investors: 34.47%
• Anchor Investors: 29.55%
• Employees: 1.5%

The company raised ₹1,276.93 crores from anchor investors on October 18, 2024. Anchor investors include institutional investors, with the lock-in period for 50% of the shares ending on November 23, 2024, and for the remaining 50% on January 22, 2025.

Subscription Status

As of October 22, 2024 (Day 2), Waaree Energies IPO has been subscribed 7.54 times:

• Retail investors subscribed 6.13 times
• NIIs subscribed 20.47 times
  • Small NII: 21.33 times
  • Big NII: 20.05 times
• QIBs: 0.20 times
• Employees: 3.01 times

Promoter Holding

Waaree Energies’ promoters include Hitesh Chimanlal Doshi, Viren Chimanlal Doshi, Pankaj Chimanlal Doshi, and Waaree Sustainable Finance Private Limited. The promoters' pre-issue shareholding is 71.80%, which will reduce to 64.30% post-issue.

Objects of the Issue

The net proceeds from the IPO will be used for:

1. Part financing the establishment of a 6GW Ingot Wafer, Solar Cell, and Solar PV Module manufacturing facility in Odisha, India.
2. General corporate purposes.

Conclusion

Waaree Energies, with its solid financials, established market leadership, and growth potential in the renewable energy sector, presents a promising investment opportunity. While the IPO is priced on the higher side, the company’s strong fundamentals and future expansion plans make it an attractive proposition for medium to long-term investors.

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