Waaree Energies files Draft Red Herring Prospectus for IPO

Waaree Energies Limited, a top solar PV module manufacturer in India with a 12 GW installed capacity, submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) on 30 June 2023.

Waaree Energies IPO Details

Waaree Energies' IPO involves a ₹3000 Crore fresh issue of Equity Shares and an offer for sale, including up to 3,200,000 (32 lakh) equity Shares with a face value of ₹10 each. Selling shareholders include Waaree Sustainable Finance Private Limited, Chandurkar Investments Private Limited, and Samir Surendra Shah.

Out of 3,200,000 shares, Waaree Sustainable Finance plans to sell 2,700,000 shares, and Chandurkar Investments, along with Samir Surendra Shah, will offload 500,000 shares. The current shareholding distribution is 72.32% by promoters and 27.68% by the public.

The company aims to use the net proceeds to set up a 6GW manufacturing facility for Ingot Wafer, Solar Cell, and Solar PV Module in Odisha, India. Additionally, funds will be used for general corporate purposes.

Company Brief Overview

Established in 2007, Waaree Energies specializes in manufacturing solar PV modules, prioritizing sustainable energy. As of June 2023, the company has increased its installed capacity to 12 GW, marking growth from 9 GW in March 2023 and 2 GW in 2021. Waaree Energies possesses an order book totaling 20.16 GW, inclusive of orders for its subsidiary, Waaree Solar Americas Inc., based in the United States.

In the fiscal year 2022-23, Waaree Energies saw growth with a 538% YoY increase in net profit, totaling ₹482.8 crore. Revenue from operations also rose by 136.5%, reaching ₹6,750.9 crore compared to FY22. The most recent financial report for the quarter ending June FY24 reveals a net profit of ₹336 crore on revenue of ₹3,328.3 crore.

In September 2021, Waaree Energies filed for an IPO to raise funds, with a fresh issue of ₹1,350 crore and an offer for sale (OFS) of 40.07 lakh shares by existing shareholders. Despite receiving regulatory approval in January 2022, the company later withdrew the ₹1,500 crore IPO papers, likely due to volatile market conditions in the subsequent months.

Final Words

Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital serve as merchant bankers for the issue. Link Intime India acts as the registrar.