Should You Consider Investing in Waaree Energies IPO?

About Waaree Energies Limited

Incorporated in December 1990, Waaree Energies Limited is a leading Indian manufacturer of solar photovoltaic (PV) modules. The company has grown into a major player in the renewable energy sector, with an impressive installed capacity of 12 GW, making it one of the largest in India. Waaree offers a diverse range of solar energy solutions, including Multicrystalline modules, Monocrystalline modules, and TopCon modules. These products cater to various market needs, with flexible bifacial modules (Mono PERC) that come in both framed and unframed forms, as well as building-integrated photovoltaic (BIPV) modules.

The company operates four advanced manufacturing facilities located in Gujarat, covering a total area of 136.30 acres. These facilities are in Surat, Tumb, Nandigram, and Chikhli, all of which have been built to the highest international standards. Waaree Energies places great emphasis on quality and safety, as evidenced by the certifications their plants have achieved. For example, the Tumb facility is certified under ISO 45001:2018 and ISO 14001:2015 for the manufacture, marketing, supply, and installation of solar PV modules, while the Chikhli facility holds certifications for ISO 45001:2018, ISO 9001:2015, and ISO 14001:2015. These certifications reflect Waaree's dedication to maintaining top-notch production standards and operational excellence.

Waaree’s extensive retail network spans across India, helping the company cater to a broad range of clients both in the domestic and international markets. As of June 30, 2023, Waaree Energies serves a diverse customer base, although its domestic customer numbers have become more focused, narrowing from 1,381 clients in March 2021 to 373 clients by mid-2023. This indicates a refined customer strategy aimed at better servicing a dedicated clientele. Globally, the company has maintained a steady presence, catering to 31 international clients in 2021, with a slight fluctuation to 20 clients by June 2023.

In terms of workforce, Waaree Energies boasts a team of 1,019 full-time employees, emphasizing its scale and operational strength. Under the leadership of an experienced management team, Waaree Energies has maintained a consistent track record of strong financial performance, making it a dominant player in the solar energy sector. The company’s commitment to innovation and its solid growth strategy have placed it at the forefront of India’s transition towards renewable energy.

Read all about Waaree Energies IPO

Waaree Energies Performance History

Waaree Energies has shown remarkable growth over the years. Here are the reasons why this IPO could be a good addition to your investment portfolio:

1. India’s Largest Solar PV Module Manufacturer

Waaree Energies holds the top spot in the Indian solar PV module manufacturing industry. With an installed capacity of 12 GW, the company is well-positioned to lead the way as solar energy demand increases both in India and globally.

2. Diverse Product Portfolio

The company offers a wide range of solar energy products. From Multicrystalline and Monocrystalline modules to the latest TopCon modules, Waaree’s products cover various technological needs. This includes flexible bifacial modules and building-integrated photovoltaic (BIPV) solutions, giving the company a competitive edge in the solar sector.

3. World-Class Manufacturing Facilities

Waaree Energies operates four advanced manufacturing facilities in Gujarat, all of which are certified to meet the highest global safety and quality standards. These certifications (ISO 45001:2018, ISO 9001:2015, and ISO 14001:2015) ensure that their products are reliable and trusted by clients worldwide.

4. Growing Demand for Solar Energy

The demand for solar energy is growing both in India and around the world. Government initiatives promoting renewable energy adoption provide a strong tailwind for companies like Waaree, which is well-positioned to capitalize on this trend. Solar energy is seen as the future, and Waaree’s large capacity makes it a key player in this space.

5. Strong Financial Performance

Waaree Energies has shown consistent growth in its financials. The company’s revenue grew by an impressive 70% between FY23 and FY24, and its profit after tax (PAT) surged by 155% during the same period. These numbers reflect Waaree’s ability to grow despite a competitive market, making it a strong candidate for long-term investment.

6. Experienced Leadership Team

Waaree Energies is led by an experienced management team with a deep understanding of the solar energy sector. This leadership has helped the company navigate challenges and remain a leader in the market.

7. Opportunity for Global Expansion

Waaree Energies has a strong presence not only in India but also in international markets. The company’s ability to serve a wide range of clients both domestically and globally shows its potential for future growth. As the global demand for clean energy rises, Waaree’s expertise in solar energy positions it well for expansion.

Key Details of the Waaree Energies IPO:

Here are the key details of the Waaree Energies IPO:

• IPO Dates: 21st October 2024 – 23rd October 2024
• Price Band: ₹1,427 – ₹1,503 per share
• Minimum Investment: ₹13,527 for retail investors (9 shares per lot)
• Total Issue Size: ₹4,321.44 crores (a mix of fresh issue and offer for sale)
• Listing: The company will list its shares on both BSE and NSE on 28th October 2024.

Company Financials:

Conclusion

Waaree Energies Limited stands as a key player in the solar energy industry, with its strong manufacturing base, impressive financial performance, and diverse product portfolio. With a growing demand for renewable energy solutions, the company is well-positioned for future growth. Its upcoming IPO offers a promising opportunity for investors to participate in the rapidly expanding solar energy sector. If you are looking for an investment in renewable energy, Waaree Energies’ IPO could be a great option.