Waaree Energies IPO: Price Band ₹1427 to ₹1503, Opens on 21st Oct 24

Waaree Energies Limited, incorporated in December 1990, is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 12 GW. The company's product portfolio consists of multi-crystalline modules, monocrystalline modules, and TopCon modules, including flexible bifacial modules and building-integrated photovoltaic (BIPV) modules. As of 30th June 2023, the company operates four manufacturing facilities in India, covering a total area of 136.30 acres, located in Surat, Tumb, Nandigram, and Chikhli in Gujarat, India.

The Objectives of the Issue

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 ("Project").
• General corporate purposes.

Highlights of Waaree Energies IPO

Waaree Energies IPO is set to launch with a book-built issue of ₹4,321.44 crores. The issue is a combination of fresh issue and offer for sale. Here are the key details of the IPO:

• The IPO opens for subscription on 21st October 2024 and closes on 23rd October 2024.
• The allotment is expected to be finalised on 24th October 2024.
• Refunds will be initiated on 25th October 2024.
• Credit of shares to Demat accounts is also expected on 25th October 2024.
• The company will tentatively list on BSE and NSE on 28th October 2024.
• The price band is set at ₹1427 to ₹1503 per share.
• The fresh issue comprises 2.4 crore shares, aggregating to ₹3,600.00 crores.
• The offer for sale comprises 0.48 crore shares, aggregating to ₹721.44 crores.
• The minimum lot size for the application is 9 shares.
• Retail investors need to invest a minimum of ₹13,527.
• The minimum investment for small NII (sNII) is 15 lots (135 shares), amounting to ₹202,905.
• The minimum investment for big NII (bNII) is 74 lots (666 shares), amounting to ₹1,000,998.
• Axis Capital Limited, Iifl Securities Ltd, Jefferies India Private Limited, Nomura Financial Advisory And Securities (India) Pvt Ltd, SBI Capital Markets Limited, Intensive Fiscal Services Private Limited and Iti Capital Ltd are the book running lead managers for the IPO.
• Link Intime India Private Ltd serves as the registrar.

Waaree Energies IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 23rd October 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Waaree Energies IPO Issue Details/Capital History

Waaree Energies IPO is scheduled from 21st October to 23rd October 2024, with a price band of ₹1427 to ₹1503 per share and a face value of ₹10. The total issue size is 2,87,52,095 shares, raising up to ₹4,321.44 crores through a combination of a fresh issue and offer for sale. The IPO will be listed on BSE and NSE. The pre-issue shareholding is 26,17,38,912 shares, and the post-issue shareholding will be 28,56,91,007 shares.

Waaree Energies IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 9 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Waaree Energies Ltd

Strengths:

• Largest Solar PV Module Manufacturer in India
• Diversified base of Indian and global customers with a large order book
• Advanced manufacturing facilities with global accreditations
• Extensive Pan India retail network
• Consistent track record of financial performance

Weaknesses:

• Dependence on government policies and regulations in the renewable energy sector
• Potential impact of global supply chain disruptions on raw material availability

Opportunities:

• Growing demand for solar energy solutions globally
• Government initiatives promoting renewable energy adoption
• Potential for technological advancements in solar PV modules

Threats:

• Intense competition in the solar energy market
• Fluctuations in raw material prices
• Geopolitical tensions affecting international trade

Financial Highlights: Waaree Energies Ltd

Waaree Energies Limited has shown significant growth in recent years. The company's revenue increased by 70%, and profit after tax (PAT) rose by 155% between the financial year ending on 31st March 2024 and 31st March 2023.
Revenue has seen substantial growth, rising from ₹29,458.51 lakh in FY22 to ₹116,327.63 lakh in FY24, marking an impressive increase of 294.9% over two years.

The company's profitability has improved significantly. Profit After Tax increased from ₹796.50 lakh in FY22 to ₹12,743.77 lakh in FY24, representing a substantial growth of 1499.9% over two years.

Net Worth has shown strong growth, increasing from ₹4,273.51 lakh in FY22 to ₹40,748.37 lakh in FY24, which represents an increase of about 853.5% over two years.

Total Borrowings have slightly increased from ₹3,130.83 lakh in FY22 to ₹3,173.19 lakh in FY24, which represents an increase of about 1.4% over two years.

The company's financial performance shows a trend of strong revenue growth and significantly improving profitability. The substantial increase in PAT and Net Worth indicate a strengthening financial position. The relatively stable borrowings suggest efficient capital management. Investors should evaluate these financial trends along with the company's market position and future growth prospects when considering the IPO.