Waaree Energies IPO Details, Financials, Peers

Waaree Energies IPO will open on October 21, 2024, and its closing date is October 23, 2024. Waaree Energies Ltd was incorporated in 1990 and it is India’s largest solar PV modules manufacturing company. As of June 30, 2024, this company has the largest installed operational capacity of 12 GW for manufacturing solar PV modules such as Bifacial, Mono PERC, Flexible, and Polycrystalline modules. In this blog, we’ve covered all the Waaree Energies IPO details, from financials, and listing date, to risks.

Waaree Energies IPO Date 2024

The important dates related to Waaree Energies IPO are:

• Bidding Opening Date: October 21, 2024
• Bidding Closing Date: October 23, 2024
• Allotment Date: October 24, 2024
• Initiation of Refunds (in case of less or no allotment): October 25, 2024
• Shares Credited to Your Demat Account: October 25, 2024
• IPO Listing Date: October 28, 2024

Waaree Energies Ltd IPO Details

Its total issue size is ₹4,321.44 crores including both the fresh issue and offer for sale (OFS) component.

Here are the key details of Waaree Energies Limited IPO:

• Waaree Energies IPO Price Band: ₹1,427 to ₹1,503 per share
• Face Value: ₹10 per share
• Lot Size: 9 Shares
• Total Issue Size and Amount: 2,87,52,095 shares (amounting to ₹4,321.44 crores)
• Fresh Issue Size and Amount: 2,39,52,095 shares (amounting to ₹3,600 crores)
• OFS Size and Amount: 48,00,000 shares of ₹10 each (amounting to ₹721.44 crores)
• Listing On Exchange: NSE and BSE

Waaree Energies IPO Proceeds

Waaree Energies Limited is planning to use the net proceeds raised through the fresh issue in the following ways:

• Portion financing of the cost of establishing the 6GW of Ingot Wafer, Solar Cell, and Solar PV Module manufacturing facility in Odisha. It will be done through the route of investment in the wholly-owned subsidiary, Sangam Solar One Private Limited.
• To cover other corporate requirements.

Waaree Energies IPO Reservations

Waaree Energies IPO reservations to different investors are:

• For QIBs: Not more than 50% of the net offer
• For NIIs: Not less than 15% of the net offer
• Retail Investors: Not less than 35% of the net offer
• Waaree Energies IPO Shareholder Quota: According to the company’s RHP, there is no shareholder quota in this IPO.

Waaree Energies Lot Size

Waaree Energies IPO lot size is 9 shares, wherein bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply in this IPO are:

Applicant Type	Lots	Shares	Amount
Retail (Min)	1	9	₹13,527
Retail (Max)	14	126	₹1,89,378
S-HNI (Min)	15	135	₹2,02,905
S-HNI (Max)	73	657	₹9,87,471
B-HNI (Min)	74	666	₹10,00,998

Waaree Energies IPO Promoter Holding

The promoters of Waaree Energies are:

• Hitesh Chimanlal Doshi
• Viren Chimanlal Doshi
• Pankaj Chimanlal Doshi
• Waaree Sustainable Finance Private Limited

Waaree Energies IPO Selling Shareholders

There are two shareholders who are selling their holdings in the Waaree Energies IPO:

Selling Shareholders	Type	Number of Equity Shares Offered
Waaree Sustainable Finance Private Limited	Promoter	Up to 43,50,000
Chandurkar Investments Private Limited	Other	Up to 4,50,000

Waaree Energies Ltd: Company Overview

Waaree Energies Limited (WEL) started its operations in 2007 and is now the largest solar panel manufacturing company in India. Its solar energy portfolio includes the following PV modules: multi-crystalline modules, monocrystalline modules, and TopCon modules.

From the 4GW (Gigawatt) installed capacity in FY22, it has grown its capacity to 12 GW at the end of June 30, 2024. After June 30, the company commissioned 1.3 GW capacity at the Indosolar Facility. The company is working to set up a fully integrated 6 GW facility for the manufacturing of PV modules and solar cells, which is expected to start in FY27.

Across India, the company has 5 manufacturing plants spread over an area of 143.01 acres. The company earns revenue from different sources including direct sales to utilities and enterprises, export sales, retail sales, etc. As of June 30, 2024, the company had 369 franchisees and distributors strengthening the pan-India network.

The company is working on establishing the 3 GW manufacturing facility in the US by FY26 and is currently exporting its products to more than 20 countries.

Waaree Energies Ltd Financials

Waaree Energies’s key financials for different periods are as follows:

Particulars	30 Jun 2024	31 Mar 2024	31 Mar 2023	YoY Change
Assets	11,989.48	11,313.73	7,419.92	52%
Revenue	3,496.41	11,632.76	6,860.36	70%
Profit After Tax	401.13	1,274.38	500.28	155%
EBITDA	639.99	1,809.58	944.13	92%
Net Worth	4,471.71	4,074.84	1,826.02	123%
Total Borrowing	261.24	317.32	273.48	16%
Net Cash Flow from Operating Activities	458.20	2,305.02	156.02	1377%
Diluted EPS (in ₹)	14.93	47.86	21.57	122%

*(in ₹ crores)

• In FY24, the company’s assets, revenue, and PAT have grown by 52%, 70%, and 155%, respectively on a YoY basis.
• EBITDA has grown by 92% which is a healthy sign but the total borrowing has increased by 16% from FY23 to FY24.
• Net cash flow from operating activities has a positive growth while the shareholder’s indicator EPS has also registered a rise.

Waaree Energies Ltd: Order Book and Capacity

The company’s order book and installed capacity in different periods are as follows:

Metric	30 Jun 2024	31 Mar 2024	31 Mar 2023	YoY Change
Capacity (in GW)	12	12	9	33.33%
Order Book (in GW)	16.66	19.93	18.06	10.35%

• Waaree Energies’ production capacity has grown by more than 33% in FY24 from FY23.
• Its strong order book growth of around 10% is a healthy sign of sales and revenue.

Peer Analysis of Waaree Energies Ltd

The comparison of the Waaree Energies Limited’s performance with the competitors are:

Company Name	Operating Income (in ₹ crores)	Revenue Growth (YoY)	Net Profit Margin (%)	ROCE	ROE
Waaree Energies	11,398	69%	11%	26%	30%
Vikram Solar	2,511	21%	3%	23%	18%
Tata Power Solar Systems	11,726	71%	3%	39%	27%
Websol Energy Systems	25.9	50%	-468%	-16%	-112%
Mundra Solar PV	1,564	-38%	-22%	-2%	-70%
Premier Energies	3,144	120%	7%	25%	36%

(For FY24 ending)

• In FY24, the company’s operating income is second-highest among all the domestic PV manufacturers.
• Both the revenue growth and net profit margin are competitive in the industry.
• In FY24, Waaree’s ROCE and ROE were more than 20% which shows that the company is generating great returns on equity and capital employed.

Risk Factors in Waaree Energies Ltd

The risk factors that the company is exposed to are as follows:

1. Approximately 9% and 40% of the total revenue earned in FY24 is dependent on the top 1 customer and top 5 customers, respectively.
2. The company is exposed to international market risk as more than 55% of the revenue from operations of FY24 is dependent on export sales specifically to the US.
3. Any delay in the execution of the projects by deployment of the net proceeds may lead to an increase in cost.
4. The inability to expand the retail sales or network through the relationship with the franchisees may impact the business.
5. The company imports some raw materials from China and any restrictions or increase in import duties can affect the cash flows.
6. Out of the 5 manufacturing facilities, 4 are located in Gujarat exposing it to the risk of local and regional uncertainties.
7. A fall in the price of solar PV modules may have an impact on the business and cash flows.

Waaree Energies IPO GMP and Review

Waaree Energies IPO GMP is ₹1,565 and its estimated listing price is ₹3,068 as of October 17, 2024 (at 10:55). With the IPO price of ₹1,503 per share, it is expected to list at a gain of 104.13%.

For all the insights on Waaree Energies IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App by opening demat account now.

Waaree Energies Limited IPO Contact Information

For inquiries related to the Waaree Energies IPO details, you can contact at the following places:

Registered Office Address: 602, 6th Floor, Western Edge – I, Western Express
Highway, Borivali (East), Mumbai – 400 066, Maharashtra, India
Phone: +91 22 6644 4444
Email: investorrelations@waaree.com
Company Website: http://www.waaree.com/

Waaree Energies IPO Registrar Details:

Registrar Name: Link Intime India Private Limited
Phone: +91 81081 14949
Email: waaree.ipo@linkintime.co.in

FAQs

Is Waaree Energys listed?

Waaree Energies will be listed on the BSE and NSE on October 28, 2024.

When Waaree Energy IPO?

Waaree Energies IPO will open on October 21, 2024, and it will close on October 23, 2024.

Are Waaree Energies and Waaree Renewables the same?

Waaree Renewables (now known as SGP Industrial Infrastructure Private Limited) is the promoter group company under Waaree Energies Ltd.

Reference
https://www.sebi.gov.in/filings/public-issues/oct-2024/waaree-energies-limited-rhp_87562.html

Author: All Content is verified by SMC Global Securities.