Waaree Energies IPO details: Best Company insights before invest

Waaree Energies IPO details
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Waaree Energies IPO details: Key Facts

  • Waaree Solar Company filed Draft Red Herring Prospectus (IREDA DRHP) for an initial public offering on December 28, 2023.
  • Waaree Energy is one of the pioneer companies in renewable energy.
  • The company claims to be one of the world’s largest solar energy manufacturers and largest solar module manufacturer outside of China.
  • Waaree Energies IPO Date is yet to be announced: –
  • CRISIL has given BBB+/Positive for long-term rating while CARE has given a rating of A-; Stable
  • Governments across the globe including India have been focusing on renewable energy and green hydrogen energy as a major source for future energy needs.
  • The company has strong growth potential to excel in this segment despite competition.

Waaree Energies DRHP filed on 28th December 2023 to float its Initial public offering. According to DRHP, Waree Energies Ltd is raising Rs 3000 crore fresh equity at a face value of ₹10 each. Promoters of this company will also sell up to 3,200,000 Equity Shares as an offer for sale in this initial public offering issue.

The net proceeds from the Waaree Energies IPO from the Fresh Issue will be utilized towards the cost of establishing the 6GW of Ingot Wafer, Solar Cell, and Solar PV Module manufacturing facility in Odisha, India. About Rs 2500 crore is fixed for this purpose.

Waaree Energies IPO details

Now the big question is – do you invest in the Waaree Energies Ltd IPO? Let us find out details about the company and why you should consider investing in this company.

Waaree Energies ltd Company profile to Invest

As of June 30, 2023, Waaree Energies Ltd is the largest manufacturer of solar PV modules in India with the largest aggregate installed capacity of 12GW. The company commenced operations in 2007 focusing on solar PV module manufacturing. Over the years, Waaree Energies Ltd has significantly expanded its aggregate installed capacity from 2 GW in Fiscal 2021 to 9 GW, as of March 31, 2023, which further increased to 12 GW as of June 30, 2023. The company sells its PV modules under the “Waaree” brand.

Solar energy products of the company consist of the following PV modules:

  • multi-crystalline modules
  • monocrystalline modules
  • TopCon modules, comprising flexible modules, which include bifacial modules (Mono PERC) (framed and unframed), and building integrated photo voltaic (BIPV) modules.

As of June 30, 2023, Waaree Energies Ltd has four manufacturing facilities in India located at Surat, Nandigram, and Chikhli in Gujarat, India.

The company is the beneficiary of the Government of India PLI scheme. In March 2023, the government, through SECI, allocated 39.6 GW of domestic solar PV module manufacturing capacity under the PLI scheme (Tranche-II) to 11 companies, with a total outlay of approximately ₹ 140.00 billion. A total manufacturing capacity of 7,400 MW is expected to become operational by October 2024, 16,800 MW by April 2025, and the remaining 15,400 MW by April 2026.

Solar PV Market and Industry Dynamics

Prime Minister of India, Shri Narendra Modi launched the National Portal for Rooftop Solar on 30/07/2022.  The government of India has increased the subsidy for rooftop solar installations to about 60% under the new Pradhan Mantri Suryoday Yojana from 40% now. Under the government’s energy transition plans, solar power is expected to account for 292 GW out of a total renewable capacity of 500 GW by 2030.

Along with the above initiatives, private investments in solar PV will likely increase as it is rapidly becoming the preferred and lowest-cost option for electricity generation globally. Generation should grow by an average of 25% between 2022 to 2030 to meet the Net Zero Emissions Scenario by 2050.

Looking at the global scenario, approximately 189 GW of solar PV capacity was added in 2022, taking the installed capacity to 1,055 GW, a growth of 22% over the previous year. According to the IEA, the global cumulative solar PV capacity would triple by 2027, surpassing natural gas by 2026 and coal by 2027.

Waaree Energies IPO: Financial Strength

As of March 31, 2021, 2022, and 2023, and as of June 30, 2023, the total numbers of customers served in India were 1,381, 716, 566, and 373 respectively. During the same time, the company served 31, 26, 33, and 20 customers outside India respectively.

Waaree Energies Ltd has reported an increase in Export Sales from ₹ 4,809.10 million representing 24.62% of the total revenue from operations in Fiscal 2021 to to ₹ 46,165.39 million representing 68.38% of the revenue from operations in Fiscal 2023. The revenue from operation has also increased from ₹ 19,530.39 million in Fiscal 2021 to ₹67,508.73 million in fiscal 2023.

waaree energies ltd share price, waaree energies IPO Details

Waaree Energies IPO Financial Snapshot

Waaree Energies
Financial Strength
FY2021FY2022FY2023Q1FY2024
Revenue from Operation
(Rs million)
19,53028,53467,50933,283
Total Income
(Rs million)
19,83029,45968,60434,150
Profit of the Year
(Rs million)
4567975,0033,383
EBITDA
(Rs million)
1,2572,0259,4415,543
EBITDA Margin (%)6.346.8813.7616.23
Debt to Equity Ratio0.790.720.180.08
PAT Margin (%)2.32.77.299.91
ROE (%)13.2217.6926.2612.36
ROCE (%)14.8721.8931.6115.86
Capacity (MW)2,0004,0009,00012,000

Waaree Energies Competitors Performance

Waaree Energies CompetitorsFiscal YearOperating Income (Rs. CroreRevenue Growth (%)OPM (%)NPM (%)ROCE (%)Interest Coverage
Waaree Energies FY236,5331361373211
Vikram solarFY231,578-7112161.8
Tata Power Solar SystemFY236,876-1983393.9
Websol Energy SystemsFY2317-92-72-138-6-3.2
Mundra Solar PVFY232,572-12144114.5

Waaree Energies ltd share price

Waaree Group was founded in 1989. Waaree Energies is the flagship company of Waaree Group. The Waaree Energies unlisted share price is trading at Rs1900 in the unlisted zone which is one of the best pre-IPO investing platforms in India. The Waaree Energies Ltd share price (unlisted) has returned 15.5% over the last three years. It is yet to see the Waaree Energies IPO price. It is expected that the Waaree Energies share price will be listed higher than the unlisted share price.

Waaree Energies credit rating

CRISIL Ratings has upgraded its rating on the long-term bank facilities of Waaree Energies Limited (WEL) to ‘CRISIL BBB+/Positive/CRISIL A2’ from ‘CRISIL BBB/Stable/CRISIL A3+’. The CARE rating agency is also has upgraded its rating from CARE BBB; Stable (Triple B; Outlook: Stable) to CARE A-; Stable Long Term Bank Facilities.

The rating upgrade reflects healthy revenue growth in fiscal 2023 driven by a strong order pipeline and favorable government policies for domestic solar PV (photovoltaic) module players.

Objective Behind the Waaree Energies IPO

  • The company will not receive any proceeds from the Offer for sale. The promoter of the company will take the net proceeds from the OFS.
  • The net proceeds from the fresh issue of Rs 2500 crore will be deployed in the Financial Years 2025 and 2026 to finance the cost of establishing the 6GW of Ingot Wafer, Solar Cell, and Solar PV Module manufacturing facility in Odisha, India.
  • The rest of Rs 5000 crore will be used for general corporate purposes.
  • The company will achieve the benefits of listing the Equity Shares on exchanges.
  • This will also enhance the visibility and brand image of the company as well as provide a public market for Equity Shares in India.

Waaree Energies IPO review: Do you invest?

  • Waaree Energies is one of the largest Solar PV manufacturers globally and the largest in India with over 30 years of experience in the industry.
  • Global renewable energy market size is expected to grow from USD 900 Billion in 2022 to USD 3200 Billion by 2030.
  • India’s renewable energy market size is expected to be worth up to $80 billion by 2030 from around $20 billion in 2022.
  • The Government of India has set a target to achieve a 500 GW renewables target before 2030 from around 180 GW in 2022.
  • Foreign direct investment (FDI) in India’s renewable energy sector stood at $251 million/ Rs 20.5 billion in the third quarter (Q3) of the financial year (FY) 2023.
  • There is a huge market to capture for this company.
  • The company has recorded strong revenue growth over the years.
  • Considering the above factors Waaree Energies has strong growth potential.

Frequently Asked Questions (FAQs)

Where is Waaree energies Ltd HQ?

Registered and Corporate Office: 602, 6th Floor, Western Edge – I, Western Express Highway, Borivali (East), Mumbai – 400 066, Maharashtra, India; Telephone: +91 22 6644 4444;
Contact Person: Rajesh Ghanshyam Gaur, Company Secretary and Compliance Officer; Telephone: +91 22 6644 4415;
E-mail: investorrelations@waaree.com;
Website: www.waaree.com

Is Waaree Energies Ltd part of Waaree Group Companies?

Yes, Waaree Energies Ltd is a part of Waaree Group Companies

How can I invest in Waaree Energies’s IPO?

If you are interested in investing in Waaree Energies’s IPO, you will need to open a demat account and trading account with a broker. You can then apply for shares during the book-building process.

When is the Waaree Energies IPO date?

The Waaree Energies IPO date is not yet announced. However, it may be open for subscription in May 2024.

What is the Waaree Energies IPO Price?

The Waaree Energies IPO Price has not yet been announced

What are the risks of investing in Waaree Energies’s IPO?

As with any investment, there are risks associated with investing in Waaree Energies’s IPO. These risks include:
1. The price of the shares may fall after the IPO.
2. The company may not perform as well as expected.
3. The company may face regulatory or legal challenges.

What is Waaree Energies ltd Share price?

Waaree Energies ltd share price (unlisted) has increased by 15.5% to reach Rs1900 in Unlisted Zone.

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