| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 1,427 to ₹ 1,503 | 9 | 21st Oct, 2024 – 23rd Oct, 2024 | ₹ 4,321.44 Cr |
About Waaree Energies Limited IPO
Waaree Energies Ltd, India’s most prominent and tier-1 rated manufacturer of solar PV modules, started its operations in 2007. The company aims to provide quality, cost-effective, sustainable energy solutions across markets and help reduce carbon footprint, paving the way for sustainable energy and improving quality of life. In FY22, it expanded from 4 GW to 12 GW, becoming the largest aggregate installed capacity. They manufacture various solar energy PV modules like multi-crystalline modules, monocrystalline modules, and TopCon modules, comprising flexible modules, which include bifacial modules (Mono PERC) (framed and unframed) and building integrated photo voltaic (BIPV) modules. The company uses multi-crystalline cell technology, monocrystalline cell technology, and emerging technologies such as Tunnel Oxide Passivated Contact (TopCon) to manufacture PV modules, which help reduce energy loss and improve efficiency. They operate from 5 manufacturing units in India, with one factory each located at Surat, Tumb, Nandigram, and Chikhli in Gujarat and the IndoSolar facility in Noida, Uttar Pradesh. Their facility at Tumb and Surat are certified with ISO 9001:2015 for the manufacture, marketing, and supply of solar photovoltaic modules, and the one at Tumb is also certified with ISO 45001:2018 and ISO 14001:2015 for the manufacture, marketing, supply and installation of solar photovoltaic modules. Their Chikhli facility is certified with ISO 45001:2018, ISO 9001:2015, and ISO 14001:2015. It has received CB scheme certification from UL Solutions, USA, and complies with BIS standards IS 14286:2010 / IEC 61215:2005, IS/IEC 61730 (Part 1 & 2). Additionally, their PV modules from Chikhli, Surat, Tumb, and Nandigram facilities have been certified by Eurotech to meet European standards under the EU Council Directive 2014/35/EU. Their modules also meet RoHS compliance under Directive 2011/65/EU, restricting the use of hazardous substances. The National Accreditation Board for Testing and Calibration Laboratories (NABL) accredited their quality check laboratories. The company intends to increase export sales while continuing its growth in India.
Objective of the Waaree Energies Limited IPO
The net proceeds of the fresh issue are proposed to be utilised in the following manner:
- Part finance the cost of establishing the 6GW of Ingot Wafer, Solar Cell and Solar PV Module manufacturing facility in Odisha, India, by way of an investment in its wholly owned subsidiary, Sangam Solar One Private Limited; and
- General corporate purposes.
Rationale To Invest In Waaree Energies Limited IPO
Backwards integration-driven capacity expansion strengthens market leadership
As of June 30, 2024, Waaree Energies is India’s largest solar PV manufacturer. In FY24, it had the second-best operating income among all the domestic players in this segment. It has expanded its aggregate installed capacity from 4 GW to 12 GW and commissioned 1.3 GW of Indosolar Facility, highlighting its efficiency. The company’s extensive experience in the manufacturing business, deep market penetration, significant and regular capacity expansion, and backward integration into the manufacturing of solar cells position it well to meet its product demand domestically and internationally. It is extensively working on increasing its installed capacity to meet the demand-supply gap and capturing new market opportunities. To strengthen its backward integration manufacturing capabilities, the company has been provided an outlay of Rs. 19,232.40 million under the PLI Scheme awarded by the GoI. It is in the process of setting up a fully integrated 6 GW facility to manufacture ingots, wafers, solar cells and solar PV modules, which are expected to commence commercial operations in FY27. The company is also in the process of expanding its manufacturing presence internationally, with the establishment of up to 1.6 GW facility in Houston, Texas, USA, to manufacture solar PV modules, which can be further expanded by an additional 1.4 GW subject to market conditions to 3 GW installed capacity by 2026 and to 5 GW by 2027. By utilizing its strong industry position, the company has successfully taken advantage of favourable market trends, enabling it to expand its market share and implement further capacity growth initiatives.
Diversified base of global and Indian customers with a substantial order book drives sustainable growth.
Waaree Energies’ leadership position enables them to provide competitive pricing, facilitating access to a large and diversified customer base and revenue generation from such customers. In addition to its large utility and enterprise customer base in India, the company has successfully developed a vast global customer base in the United States, Canada, Italy, Hong Kong, Turkey and Vietnam. To meet international demands, the company is establishing a manufacturing facility with up to 1.6 GW in Houston, Texas, in the United States, providing customers with localised manufacturing and service options to optimise their global sourcing and supply chain costs. The company’s high-quality products, ISO-certified facilities and NABL-accredited laboratory are barriers to competitors. Their inclusion in ALMM enables them to participate in the bidding process for government projects. Waaree Energies’ strong order book and diverse customer base offer revenue stability and diversification while mitigating risks related to losing key customers, ensuring business continuity and sustainable growth.
Valuation of Waaree Energies Limited IPO
Waaree Energies is a prominent manufacturer of solar PV modules in India with an aggregate installed capacity of 12 GW. The company’s portfolio of solar energy products consists of the following PV modules: multi-crystalline modules, monocrystalline modules, and TopCon modules. It also comprises flexible modules, which include bifacial modules (Mono PERC) (framed and unframed) and building integrated photovoltaic (BIPV) modules. The company has strengthened its market position through extensive capacity expansion, backward integration, and strategic international growth, positioning itself to capture new opportunities and meet rising demand domestically and globally. The commercial & industrial sector accounts for 70%-80% of the country’s rooftop solar installations. It is also Making strides in the utility-scale solar space through open access and group captive routes. On the financial front, the company’s operational revenue grew at an outstanding CAGR of 99.8% from FY22 to FY24. Profit after tax rose from Rs. 796.50 million in FY22 to Rs. 12,743.77 million in FY24, while return on equity (ROE) improved from 17.69% to 30.26%. The company’s global expansion, competitive pricing, and strong order book ensure revenue stability, business continuity, and sustainable growth while optimising worldwide sourcing and supply chain costs. The company is valued at a PE ratio of 31.4x on the upper price band based on FY24 earnings, which is lower than its peers. Given its strong financial growth and substantial order book, the company is well-positioned to grow within the sector. Therefore, we recommend a “SUBSCRIBE” rating for medium to long-term investment.
What is the Waaree Energies Limited IPO?
Waaree Energies IPO is a book built issue of Rs 4,321.44 crores. The issue is a combination of fresh issue of 2.4 crore shares aggregating to Rs 3,600.00 crores and offer for sale of 0.48 crore shares aggregating to Rs 721.44 crores. Login to your account now.
How to apply for the Waaree Energies Limited IPO through StoxBox?
To apply for the Waaree Energies Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Waaree Energies Limited IPO open?
Waaree Energies Limited IPO is opening on 21st October 2024. Apply Now
What is the lot size of the Waaree Energies Limited IPO?
The Lot Size of Waaree Energies Limited IPO is 9 equity shares. Login to your account now
When is the Waaree Energies Limited IPO allotment date?
The allotment Date for Waaree Energies Limited IPO is 24th October 2024. Login to your account now.
When is the Waaree Energies Limited IPO listing date?
The listing Date for Waaree Energies Limited IPO is 28th October 2024. Login to your account now
What is the minimum investment required for the Waaree Energies Limited IPO?
In the Retail segment the minimum investment required is Rs. 13,527. Login to your account now
What is the maximum investment allowed for the Waaree Energies Limited IPO?
In the Retail segment the maximum investment requirement is Rs. 189,378. Login to your account now
What are the risks associated with investing in the Waaree Energies Limited IPO?
- The company plans to allocate a significant portion of its funding for capital expenditure, including partially financing a 6 GW facility through its subsidiary, Sangam Solar One Private Limited. This investment faces potential delays, cost overruns, and dependency on government subsidies, which could impact the company’s financial condition if approvals are delayed.
- The company’s major business depends on certain key customers, and the loss of any of these customers or revenue from sales to any key customers could have a material adverse effect on its business, financial condition, results of operations, and cash flows.
- The company imports over 50% of its raw materials, particularly solar cells, from China and other countries. Any restrictions or import duties on materials and equipment essential for its manufacturing operations could adversely affect the company’s business, financial performance, and cash flows.
When will the Waaree Energies Limited IPO shares be credited to my Demat account?
The Waaree Energies Limited IPO be credited to the account on allotment date which is 25th October 2024. Login to your account now
Where can I find the Waaree Energies Limited IPO prospectus?
The prospectus of Waaree Energies Limited IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Waaree Energies Limited IPO?
| IPO Open Date | Monday, October 21, 2024 |
| IPO Close Date | Wednesday, October 23, 2024 |
| Basis of Allotment | Thursday, October 24, 2024 |
| Initiation of Refunds | Friday, October 25, 2024 |
| Credit of Shares to Demat | Friday, October 25, 2024 |
| Listing Date | Monday, October 28, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 23, 2024 |
