Waaree Energies is a mainboard IPO with a book-built issue of Rs 4,321 crore with a fresh issue of 2.4

crore shares worth Rs 3,600 crore and offer-for-sale of 0.48 crore shares worth Rs 721 crore. The IPO

will open from 21 st October 2024 – 23 rd October 2024, allotment is expected to be done on 24th

October 2024, and the issue will be listed on the BSE and NSE on 28th October 2024. The price band is

fixed at Rs 1,427-1,503 per share, with a minimum lot size of 9 shares and a minimum investment

amount of Rs 13,527. The book-running lead managers are Axis Capital, IIFL Securities, Jefferies,

Nomura, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital.

The net proceeds from the IPO will partly finance the capex of a 6GW ingot wafer, solar cell, and solar PV module manufacturing facility in Odisha (Rs 2,775 crore) and general corporate purposes (Rs 825 crore). Meanwhile, the OFS will go directly to the selling shareholders.

Incorporated in 1990, Waaree Energies is the largest manufacturer of solar PV modules in India, with the largest installed capacity of 12 GW. The product portfolio consists of solar energy products such as:

(i) multi-crystalline modules;

(ii) mono crystalline modules; and

(iii) TopCon modules are comprised of flexible modules, which include bifacial modules (Mono PERC) (framed and unframed), and building integrated photo voltaic (BIPV) modules. As of June 2023, the company operated four manufacturing facilities in India, covering an area of 136 acres. These facilities are in Surat, Tumb, Nandigram, and Chikhli of Gujarat, India. As of June 30th, 2024, the company served 1,067 total customers, with 12 customers outside India. It has a pending order book of 16.7 GW, including domestic orders, exports, and franchisee orders, and 3.75 GW of orders from Waaree Solar Americas Inc. (subsidiary) in the US.

The following points should be kept in mind:

-The company is the largest solar PV module manufacturer in India and is well-positioned to capture industry tailwinds and growth prospects for solar energy in India and globally. As of June 30, 2024, it has expanded its installed capacity from 4 GW in Fiscal 2022 to 12 GW.

-It has a diversified base of global and Indian customers and a substantial order book. As of June 30, 2024, it had served 1,079 customers domestically and abroad. The pending order book was 16.66 GW, including domestic orders, exports, franchisee orders, and 3.75 GW orders from Waaree Solar Americas Inc. (subsidiary) in the US. 

-The company has advanced manufacturing facilities with global accreditations and automated production lines. Given the rising demand for advanced products like Mono PERC and TopCon modules, it is focused on increasing production.

-It has a pan-India retail network consisting of franchisees. As of June 30, 2024, it had 369 franchisees across India. Our extensive franchisee network across India increases the visibility and reach of our products through direct customer interaction and distribution. It has launched a program called “Waaree Prime,” which rewards our franchisees for increasing our sales and fostering a service ecosystem.

The following points should be kept in mind:

-The top 10 customers contributed 57% to the topline in FY24. The business depends on certain key customers, and the loss of any of these customers or revenue from sales to any key customers could adversely affect the business, financial condition, results of operations, and cash flows.

-The company imports a portion of its raw material supply from China. Restrictions on or import duties relating to materials and equipment imported for its manufacturing operations may adversely affect our business prospects, financial performance, and cash flows.

-In the event of any breach of warranties or if the company fails to meet its client’s expectations, it is required to indemnify and reimburse the customer for the direct loss and damage.