Waaree Energies IPO Highlights: The initial public offering (IPO) of Waaree Energies officially opened for subscription on October 21, featuring a fresh equity sale of Rs 3,600 crore alongside an offer for sale (OFS) of 48 lakh shares. The subscription period will run until October 23. Prior to the opening, the company successfully raised Rs 1,277 crore from 92 anchor investors.
The IPO is priced in the range of Rs 1,427 – 1,503 per share, allowing investors to bid in lots of nine shares. Market analysts report that the current grey market premium (GMP) for Waaree Energies stands at Rs 1,340, reflecting an impressive premium of 89% over the issue price.
Government initiatives such as PM-KUSUM, Rooftop Phase-II, and Atmanirbhar Bharat reflect India’s commitment to clean energy. Supportive policies like the PLI scheme and customs duty exemptions on solar components are attracting investments, driving the country’s renewable energy sector forward.
As the world transitions toward renewable energy, Waaree Energies is well-positioned to benefit from the increasing demand for solar solutions. Its strong track record, market share, and focus on sustainability underscore its growth potential in the solar sector.
Waaree Energies’ product lineup includes advanced solar technologies such as Mono PERC and bifacial modules. The company is incorporating emerging technologies like Tunnel Oxide Passivated Contact (TopCon) to enhance efficiency and reduce energy loss in their products.
The company faces key risks such as a global economic slowdown, customer concentration, and regional risks due to its operations being largely based in Gujarat. Additionally, reliance on Chinese imports for raw materials exposes the company to potential trade restrictions.
Waaree Energies is a prominent Indian manufacturer of solar PV modules, with an installed capacity of 12 GW. Their product range includes Multicrystalline, Monocrystalline, and TopCon modules, catering to diverse solar energy needs.
The IPO has already received 97.34 lakh applications, achieving an overall subscription of 76.34 times. The Qualified Institutional Buyers (QIB) portion has been subscribed 208.63 times, while the retail segment is subscribed 10.79 times, and the employee portion 5.17 times.
The Initial Public Offering (IPO) of Waaree Energies opened on October 21, offering a fresh equity sale of Rs 3,600 crore along with an Offer for Sale (OFS) of 48 lakh shares. The subscription period will run until October 23, giving investors a brief window to participate.
The IPO has received 97.34 lakh applications. The overall subscription stands at 76.34 times. The QIB portion was subscribed 208.63 times. The retail segment was subscribed 10.79 times while the employee portion was subscribed 5.17 times.
Waaree Energies is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 12 GW. Its product portfolio consists of Multicrystalline modules, Monocrystalline modules, and TopCon modules include flexible bifacial modules (Mono PERC).
The key risks for the company are general slowdown in the global economic activities, customer concentration risk, and natural and catastrophic events may lower energy production. Also, the company's 4 out of 5 operations is in Gujarat, exposing them to regional risks. A significant portion of the company's raw materials is imported from China, making it vulnerable to trade restrictions. Furthermore, the proposed project relies on government subsidies.
The company provides an extensive range of solar PV modules, utilizing both multicrystalline and monocrystalline technologies. The product line includes high-efficiency solutions such as Mono PERC and bifacial modules, catering to a variety of customer needs, The company is at the forefront of technological advancements, incorporating emerging technologies like Tunnel Oxide Passivated Contact (TopCon), which minimizes energy loss and enhances efficiency, positioning WEL’s products as leading solutions in the market.
In FY23, India saw a significant rise in solar module exports, driven by global restrictions on Chinese goods, allowing Indian manufacturers to meet market demand. With strong government support, India added 13 GW of solar capacity in 2023, over 15 GW in 2024, and 7.4 GW in the first five months of Fiscal 2025, bolstering its position in the renewable energy sector.
With solar energy emerging as a key global theme in the transition towards renewable energy, the company is poised to capitalize on the growing opportunity led by its strong track record, leading market share, strong financials, and continued focus on innovation and sustainability. Government initiatives, such as PM-KUSUM, Rooftop Phase-II, and Atmanirbhar Bharat, highlight India’s commitment to promoting green energy. Supportive policies, including subsidies, PLI scheme, and customs duty exemption on solar components are actively attracting investment and propelling growth in the renewable energy sector.
The company raised a sum of Rs 1,276.93 crore from anchor investors by offering them 8.5 million shares of the company.
The company's key competitive strengths is that it is the largest Solar PV module manufacturer in India. It has advanced manufacturing facilities with global accreditations. Alos, the Ccnsistent track record of financial performance along with diversified base of global and Indian customers with a large order book.
"During FY20-24, the company’s revenue/EBITDA/PAT clocked a CAGR of 55%/103%139%, respectively, as the EBITDA margin improved from 4.8% in FY20 to 13.8% in FY24. In 1QFY25, the company’s revenue was at Rs 3400 crore (+2% YoY) while EBITDA and PAT stood at Rs 550 crore (+18% YoY) and Rs 400 crore (+19% YoY), respectively. Based on FY25F annualized financials, the IPO’s higher band implies an EV/EBITDA of 18x, and a P/E of 27x, which is at a discount to its peers, in our view. We recommend subscription to the IPO, given the strong financials, strong industry tailwinds with long-term opportunities in the solar industry, robust order backlog and further expansion plans," said InCred Equities in an IPO note on Waaree Energies.
Waaree Energies received bids worth Rs 38,399.56 crore. The retailers bid the issue for Rs 11,814.15 crore, booking the issue 7.93 times. The NIIs subscribed to the issue 37.37 times. The QIBs booked the IPO 2.13 times. The company received Rs 24,565.69 crore worth of bids from NIIs.
"Waaree Energies is the market leader in manufacturing and
exporters of Solar PV modules. Over FY20-24, its installed capacity has zoomed 6x to 13.3GW (2GW in FY21), by far the highest amongst its peers, transpiring into a respectable 21% share of the domestic market and a healthy 44% share in exports of solar modules from India," said Anand Rathi Research in an IPO note.
"As on June 30, 2024 the company’s order book of solar PV modules was 16.6 GW. The order book included domestic orders, export orders, franchisee orders and 3.75 GW of orders for the Subsidiary, Waaree Solar Americas Inc. located in the United States. The company expects to roll out locally manufactured electrolysers by the end of FY2026. The company received a tier-1 PV module maker rating from Bloomberg New Energy Finance between FY2018 and FY2024. Some of the company’s labs are accredited by the NABL which tests the solar PV modules for quality check," said
The company has received buds worth Rs 27,971.71 crore from investors. The retail buyers booked the issue 6.7 times more than the offered shares. The IPo was subscribed 10 times.
The net proceeds of the fresh issue are proposed to be utilised for part finance the cost of establishing the 6GW of Ingot Wafer, Solar Cell and Solar PV Module manufacturing facility in Odisha, and other general corporate purposes
"For the last three fiscals, the company has reported an average EPS of Rs. 31.94 (basic), and an average RoNW of 26.95%. The issue is priced at a P/BV of 8.84 based on its NAV of Rs. 169.94 as of June 30, 2024, and at a P/BV of 5.35 based on its post-IPO NAV of Rs. 281.16 per share (at the upper cap). If we attribute FY25 annualized super earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 26.91, and based on FY24 earnings, the P/E stands at 44.36. The issue relatively appears fully priced," said Bajaj Broking in an IPO note.
The company will be closing the IPO on October 23. The IPO was opened on October 21. It aims to raise a sum of Rs 4,321.44 crore. It kept the IPO price band in a range of Rs 1427 to Rs 1503 per equity share.
Waaree Energies IPO 2024 Live: Waaree Energies IPO Latest GMP
According to market observers, the Waaree Energies IPO is trading at a grey market premium (GMP) of approximately Rs 1500 per share, representing a 100% premium. This indicates that investors are willing to pay Rs 1500 more than the upper end of the IPO price band, which is set at Rs 1503, to acquire the shares.
Waaree Energies IPO 2024 Live: Product portfolio
Waaree Energies offers a diverse range of solar products, including multi-crystalline and mono-crystalline solar modules. They also provide TopCon modules in various forms such as flexible, bifacial (Mono PERC), framed, unframed, and building-integrated photovoltaic (BIPV) modules, designed to meet a wide array of customer applications and requirements.