India’s Solar Giant Waaree Energies Files for $400 Million IPO

Nation’s largest solar manufacturer seeks funds to expand capacity, tap surging demand for clean energy

Waaree Energies Limited, India’s largest manufacturer of solar photovoltaic (PV) modules, filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Monday, paving the way for a mammoth $400 million (Rs 3,000 crore) initial public offering (IPO).

The offering comprises a fresh issue of equity shares aggregating up to $384 million (Rs 3,000 crore) and an offer for sale of up to 3.2 million equity shares of Rs 10 each. Promoter selling shareholders Waaree Sustainable Finance Private Limited and Chandurkar Investments Private Limited, along with individual shareholder Samir Surendra Shah, will divest shares through the offer for sale.

Waaree Energies intends to utilize the net proceeds from the IPO to partially finance the establishment of a 6GW ingot wafer, solar cell, and solar PV module manufacturing facility in Odisha, India, and for general corporate purposes.

Founded in 2007, Waaree Energies has grown to become a dominant player in the Indian solar market, boasting the largest aggregate installed capacity of 12 GW as of June 30, 2023. It also boasts the second-best operating income among domestic solar PV module manufacturers for FY23.

The company’s diverse portfolio includes multicrystalline and monocrystalline modules, TopCon modules with flexible and bifacial configurations, and building-integrated photo voltaic (BIPV) modules.

Waaree’s leadership position translates to competitive pricing, attracting a broad and diversified customer base across India, the United States, Canada, Italy, Hong Kong, Turkey, and Vietnam. The company also operates a robust retail network of 284 franchises across India as of June 30, 2023, catering to rooftop and MSME sectors.

Financial performance demonstrates robust growth, with revenue from operations soaring from Rs 19,530.39 million in FY21 to Rs 67,508.73 million in FY23, representing a CAGR of 85.92%. The company enjoys a healthy balance sheet with low debt levels.

Furthermore, Waaree boasts a substantial order book, standing at 20.16 GW as of November 30, 2023, encompassing domestic, export, and franchisee orders, in addition to 3.75 GW of orders for its US subsidiary, Waaree Solar Americas Inc.

Waaree’s extensive experience, deep market penetration, and commitment to capacity expansion, coupled with backward integration into solar cell manufacturing, position the company to capitalize on the burgeoning domestic and international demand for solar energy products.

Axis Capital Limited, IIFL Securities Limited, Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Private Limited, SBI Capital Markets Limited, Intensive Fiscal Services Private Limited, and ITI Capital Limited are acting as the Book Running Lead Managers to the issue.

Waaree Energies’ IPO marks a significant development in India’s burgeoning renewable energy sector and underscores the rising investor appetite for sustainable projects. As the company gears up for public debut, analysts predict a strong response, potentially propelling it further towards its goal of becoming a global solar powerhouse.