Waaree Energies, one of the leading solar equipment manufacturers in the country, has got clearance from the market regulator Securities and Exchange Board of India (SEBI) to launch a ₹1500 crore initial public offer(IPO).
The IPO comprises a fresh issue of shares worth ₹1350 crore, and an offer for sale up to 4,007,500 equity shares by the company's promoters and existing shareholders. Proceeds of the issue will be used to the extent of ₹910.31 crore for setting up solar cell manufacturing units and ₹141.24 crore for solar module facilities. The remaining proceeds will be used for general corporate purposes. The company had revenue from operations of ₹1,952.78 crore for the fiscal year 2020-21, with a net profit of ₹48.19 crore. In September, the company had filed draft papers with SEBI.
Waaree Energies makes Photo-voltaic (PV) modules and have an aggregate installed capacity of 2 GW as of March 2021 and currently operates three manufacturing facilities at Surat, Tumb, and Nandigram. It also has a presence across 68 countries. The company is in the process of setting up another manufacturing facility at Chikhli, Gujarat, where it is expanding capacity for PV modules as well as setting up facilities for backward integration into solar cell manufacturing. The proposed addition of 3 gigawatts (GW) PV module manufacturing capacity is expected to be operational by the end of fiscal 2022, and the 4 GW solar cell manufacturing capacity is expected by the end of fiscal 2023.
The Mumbai based company competes with other major Indian solar equipment makers like Vikram Solar, Mundra Solar Private Limited (Adani), Premier Energies, RenewSys India, Emmvee Photovoltaic Power and Alpex Solar. Its main clients in the domestic utility and enterprise segment include ReNew Power, ACME, Hero Solar, Mahindra Susten, Essel Infra, AMP Energy, Sukhbir Agro Energy, Solarworld Energy, Rays Power Infra. Among international clients, it serves Central 40 and Novel Energy.
The offer for sale (OFS) consists of the sale of up to 1,315,000 equity shares by chairman Hitesh Chimanlal Doshi; up to 1,315,000 equity shares by other promoters like Virenkumar Chimanlal Doshi; up to 1,315,000 equity shares by Mahavir Thermoequip; up to 40,000 shares by Samir Surendra Shah and up to 22,500 shares by Nilesh Gandhi. Additionally, the company may go for a preferential issue aggregating up to ₹270 crore, sources have said.
Axis Capital Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited and Intensive Fiscal Services Private Limited are the book running lead managers to the issue.