Waaree Energies Limited IPO is now live on Upstox!

Incorporated in 1990, Waaree Energies Limited is the largest manufacturer of solar PV modules in India, with an aggregate installed capacity of 12 GW as of 30 June 2024. Its product portfolio includes multicrystalline PV modules, monocrystalline PV modules, and TopCon PV modules.

Its sales and revenue channels include direct sales, export sales, retail sales, and others. Its products are used by enterprises, rooftop and MSME customer businesses. It provides EPC (Engineering, Procurement, and Construction) services to domestic utilities and enterprise customers. It is also engaged in O&M (Operations and Maintenance) services, trading in ancillary products, export incentives, generating electricity from renewable resources, and scrap sales.

It operates five manufacturing facilities located at Surat, Tumb, Nandigram, and Chikhli in Gujarat, India, and one in Noida, Uttar Pradesh. The facilities are certified by ISO and the European Union. It maintains high standards for insurance approval as its product warranties are insured by external parties.

As of 30 June 2024, it served 1,076 customers in India and 12 customers outside India. The company also has a substantial order book of solar PV modules. Its pending order book of solar PV modules stood at 16.6 GW as of June 30, 2024, while its subsidiary, Waaree Solar Americas Inc. has 3.75 GW of orders in the United States.

Between FY22 and FY24, it saw a CAGR rise of over 58% in its revenue from operations and 152% in its profit. Moreover, solar capacity additions of 137 GW to 142 GW are expected over FY25 to FY29, which could indirectly benefit the company.

Now, Waaree Energies Limited is launching its initial public offer (IPO). The total IPO issue size is ₹4,321.4 crore, comprising fresh issue, aggregating to ₹3600 crore, and an offer for sale, aggregating to ₹721.4 crore. The money raised from the fresh issue will be utilised to establish a 6GW ingot wafer, solar cell and solar PV module manufacturing facility in Odisha and for general corporate purposes. Its shares will be listed on the NSE and BSE.

Here are key details about the Waaree Energies IPO:

Company Name Waaree Energies Limited
Company Type Private
Company Established 1990
Waaree Energies IPO Open Date 21st October 2024
Waaree Energies IPO Close Date 23rd October 2024
Waaree Energies IPO Allotment Status 24th October 2024
Credit of Shares to Demat 25th October 2024
Waaree Energies IPO Listing Date 28th October 2024
Waaree Energies IPO Face Value ₹10 per share
Waaree Energies IPO Lot size 9 shares
Waaree Energies IPO Issue Size Approx ₹4,321.4 crore
Waaree Energies IPO Listed at BSE, NSE
Waaree Energies IPO Price ₹1427 – ₹1503 per share

Financial snapshot

₹ crore FY22 FY23 FY24 Q1 FY25
Income 2,854 6,750 11,397 3,408
Net profit 79.6 500 1,274 401

Strengths

  • Well-positioned to capture industry tailwinds as the largest manufacturer of solar PV modules in India.
  • A diverse base of Indian and global customers includes customers from the United States, Canada, Italy, Hong Kong, Turkey, and Vietnam.
  • The company has a backward integration strategy to further enhance its operations and increase profitability.
  • It integrates each stage of the production process to achieve cost savings and improve profit margins.
  • Advanced manufacturing facilities with global accreditations and a consistent Tier-1 rating from Bloomberg New Energy Finance between FY18 and FY24.
  • Extensive pan-India retail network with 369 franchisees across India as of 30 June 2024.
  • Consistent track record of financial performance with EBITDA margins of 6%, 13%, 15%, and 18% in FY22, FY23, FY24, and Q1 FY25, respectively.

Risks and threats

  • Subject to export-related risks, such as the respective legal and regulatory environment, forex rate fluctuations, and political, social, or economic instability.
  • Derives 37% of its total retail sales from Gujarat as of FY24, exposing it to risks related to geographical concentration.
  • It faces risks related to expanding in new geographies, such as high entry barriers and regulatory or financial risks.
  • It bids for solar projects with state power generation companies, which exposes it to delays that may result in a levy of damages and revenue losses.
  • The company has grown its business through acquisitions in the past and doing so subjects it to additional risks.
  • Imports 90% of its total purchases, and restrictions on import duties can significantly affect its finances.

You can now apply for the Waaree Energies Limited IPO on Upstox. Click here.