Waaree Energies, a leading solar panel manufacturer in India, has announced the price band for its upcoming Initial Public Offering (IPO), which is scheduled to open for subscription on October 21.
Price Band of Waaree Energies IPO
The price band for Waaree Energies IPO has been set between Rs 1,427 and Rs 1,503 per equity share. Investors can bid for a minimum lot of nine shares and thereafter in multiples of nine.
At the upper end of the price band, the company aims to raise Rs 4,321 crore. This includes a fresh issue of shares worth Rs 3,600 crore and an Offer for Sale (OFS) of 48 lakh equity shares. Under the OFS, promoter Waaree Sustainable Finance Private Ltd and shareholder Chandurkar Investments Private Ltd will be offloading shares.
Expected Listing Date of Waaree Energies IPO
The IPO will close on October 23, with the company planning to raise funds from anchor investors on October 18. Of the total IPO, 50% has been reserved for institutional investors, 15% for non-institutional investors, and 35% for retail investors.
Monarch Networth on Waaree Energies IPO
According to a report by Monarch Networth, Waaree Energies Ltd. (WEL) is poised for significant growth as it sets up an 11.4GW integrated manufacturing facility. This includes a 5.4GW solar cell production capacity expected by FY25E and a 6GW fully integrated facility to manufacture ingots, wafers, and solar cells by FY27E.
This vertical integration is anticipated to enhance operational efficiencies, reduce costs, and minimize reliance on external suppliers. By FY27E, WEL aims to increase its total capacity to 20.9GW, including a U.S. manufacturing facility with an initial capacity of 1.6GW, scalable up to 5GW.
With solar energy playing a pivotal role in the global transition to renewable energy, WEL is well-positioned to capitalize on the growing demand. Monarch Networth notes that the company’s market leadership, strong financial performance, and continued focus on innovation and sustainability place it at the forefront of the industry.
From FY21 to FY24, WEL has delivered an impressive compound annual growth rate (CAGR) of 80% in revenue, 154% in EBITDA, and 204% in profit after tax (PAT). Monarch Networth highlights WEL’s superior profitability, efficient capital allocation, and low leverage, with a debt-to-equity ratio of just 0.08x.
Additionally, WEL has maintained industry-leading return on equity (RoE) and return on capital employed (RoCE) metrics. Based on these factors, Monarch Networth recommends a “SUBSCRIBE” rating for Waaree Energies’ IPO.
Book Running Managers for Waaree Energies IPO
The book running lead managers for the issue include Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India), SBI Capital Markets, Intensive Fiscal Services, and ITI Capital.
Where Will be The Funds Raised Utilised?
The Mumbai-based company plans to use the proceeds from the fresh issue to establish a 6GW (gigawatt) Ingot Wafer, Solar Cell, and Solar PV module manufacturing facility in Odisha. Additionally, a portion of the funds will be allocated for general corporate purposes.
About Waaree Energies
Founded in 1990, Waaree Energies has become India’s largest manufacturer and exporter of solar modules. Over the period from FY20 to FY24, the company has expanded its installed capacity by sixfold, reaching 13.3GW—making it the largest among its peers. This growth has translated into a significant 21% share of the domestic market, according to the Approved List of Models and Manufacturers (ALMM), and a commanding 44% share of solar module exports from India.
A key player in India’s solar energy sector, Waaree Energies specializes in photovoltaic (PV) module manufacturing. As of June 30, 2023, the company had an aggregate installed capacity of 12GW across five manufacturing facilities. These are located in Surat, Tumb, Nandigram, and Chikhli in Gujarat, as well as the IndoSolar Facility in Noida, Uttar Pradesh.