As India accelerates its renewable energy initiatives, Waaree Energies, the country’s largest solar PV module manufacturer, is preparing to make a significant leap with its upcoming ₹3,000 crore initial public offering (IPO). With the Securities and Exchange Board of India (SEBI) granting approval, Waaree is set to strengthen its position as a key player in India's green energy transition.
Waaree Energies IPO Structure and Objectives
The ₹3,000 crore IPO will consist of a fresh equity issue and an offer for sale (OFS) of up to 32 lakh equity shares. The fresh issue proceeds will be used to establish a 6 GW manufacturing facility in Odisha, focused on producing ingot wafers, solar cells, and solar PV modules. A portion of the funds will also go toward general corporate purposes.
The OFS will see shareholders, including Waaree Sustainable Finance Private Limited (offering 27 lakh shares), Chandurkar Investments Private Limited (4.5 lakh shares), and Samir Surendra Shah (50,000 shares), reducing their stakes.
Industry Leadership in Solar Energy
Founded in 2007, Waaree Energies has expanded its solar PV manufacturing capacity from 2 GW in 2021 to 12 GW by mid-2023, solidifying its leadership in the Indian market. Its product lineup includes multicrystalline, monocrystalline, and TopCon solar modules, which utilize advanced technology to improve efficiency.
With four manufacturing facilities located across Gujarat—Surat, Tumb, Nandigram, and Chikhli—the company operates on 136.3 acres of land, positioning itself as a leading force in the solar energy sector.
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Financial Performance of Waaree Energies
Waaree Energies has experienced robust financial growth in recent years. Its total income surged from ₹1,983 crore in FY21 to ₹6,860 crore in FY23, driven by the increasing demand for solar modules. Profits also saw a significant rise, growing from ₹46 crore in FY21 to ₹500 crore in FY23. In Q1 of FY24, Waaree posted a profit of ₹338 crore, reflecting its continued strong performance.
Renewable Energy Industry Outlook
India’s renewable energy sector is on an impressive growth trajectory, with the country ranking fourth globally in renewable energy capacity, particularly in solar and wind installations. According to a Crisil report, India's installed renewable energy capacity rose from 63 GW in FY12 to 191 GW by March 2024. Solar energy has been a primary driver of this growth, with renewable sources now accounting for 43% of the country’s total power generation capacity.
Waaree Energies stands to benefit from this momentum as India continues to push toward cleaner energy alternatives, aiming to achieve 60 GW in renewable energy capacity by 2032.
Lead Managers
The IPO is being managed by a consortium of book-running lead managers, including Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital.
With its leading position in the solar PV manufacturing sector and an aggressive expansion plan, Waaree Energies' IPO offers a promising opportunity for investors looking to capitalize on India's growing renewable energy sector. As the company continues to scale its operations, this IPO could be a pivotal moment for both Waaree and the country's solar industry.
Stay tuned as Waaree Energies moves closer to its IPO date, marking a key moment in India’s renewable energy journey.
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