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Waaree Energies Limited is an Indian manufacturer of solar PV modules with 12 GW of aggregate installed capacity. Waaree Energies IPO is a combination of fresh issue of 2.4 crore shares aggregating to Rs 3,600 crores and OFS of Rs 721.44 crores.

About Waaree Energies Limited:

• Waaree Energies Limited (“WEL”) was founded in 1990. 
• WEL commenced operations in 2007 focusing on solar PV module manufacturing.
• Waaree Energies is the largest manufacturer of solar PV modules in India with 12 GW of aggregate installed capacity incorporating N-type TOPCon, N-type HJT, and P-type PERC technologies based on Flexible module offerings for ground-mount utility-scale PV plants, rooftops, and floating PV applications.
• It operates five manufacturing facilities with one factory each, located at Surat, Tumb, Nandigram and Chikhli in Gujarat, and the IndoSolar Facility, in Noida, Uttar Pradesh.
• The company’s order book of solar PV modules was 16.6 GW as of June 30, 2024. The order book included domestic orders, export orders, and franchisee orders and 3.75 GW of orders for the Subsidiary, Waaree Solar Americas Inc. located in the United States.
• Company’s promoters are Hitesh Chimanlal Doshi, Viren Chimanlal Doshi, Pankaj Chimanlal Doshi and Waaree Sustainable Finance Private Limited.

Financials : Waaree Energies IPO

Anchor: Waaree Energies IPO

Waree Energies IPO raised ₹1,277 crore in the anchor round. Goldman Sachs, Abu Dhabi Investment Authority, Morgan Stanley, The Prudential Assurance Company, National Pension Service (Managed by BlackRock Institutional Trust Company, NA), HDFC Mutual Fund (MF), ICICI Prudential MF, Canara Robeco MF, Tata MF and Bandhan MF are among the prominent anchor investors.  One third of the total anchor book was allocated to 17 domestic mutual funds through a total of 45 schemes.

Salient Points: Waaree Energies IPO

• Waaree Energies is the largest manufacturer of solar PV modules in India with the largest aggregate installed capacity of 12GW and utilized capacity of 43.37%, as of June 30, 2024.
• Waaree Energies had the second-best operating income among all the domestic solar PV module manufacturers in India in FY2024.
• The company is implementing capacity expansion for backward integration into solar cell manufacturing with the addition of 5.4 GW capacity at the Chikhli Facility which is expected to be operational by Fiscal 2025.
• Waaree Energies has been provided an outlay of ₹ 1,923.24 Cr under Government of India’s PLI scheme and the company is setting up a fully integrated 6 GW facility for the manufacture of ingots, wafer, solar cells and PV modules in Odisha, which will commence commercial operations in the FY 2027.
• The company has been awarded the PLI tender issued by MNRE through SECI with a capacity of 300 MW to set up manufacturing capacities for electrolysers in India. (green Hydrogen). This will go on stream by end FY2026.
• A 1.6 GW module plant in Texas, US, with an investment of Rs. 500 cr capable of being expanded to 5 GW by FY27. 
• The company’s Revenues from Operations have increased at a CAGR of 99.83% from ₹ 2,854.27 in FY2022 to ₹ 11,397.61 in FY2024, while the EBITDA margins have improved from 6.88%% to 16.23% during the same period.
• PAT increased from ₹ 79.65 in FY2022 to ₹ 1,274.38 in FY2024.
• Waaree Energies has  total borrowings at ₹ 317.32 Cr in FY2024 with debt/ equity ratio at 0.08 x and interest coverage ratio at 22.17 x.
• They have been upgrding the technology at a rapid pace. Have moved to TOPCon technology which is a significant improvement in the manufacture of solar PV cells. This involved incorporation of a thin tunnel oxide layer, which passivates the surface, limiting recombination losses and increasing the efficiency of the solar cell. By minimizing carrier recombination at the contact surface, TOPCon technology contributes to higher conversion efficiencies which helps in improvement of solar cell performance.
• PE 25 (annualized) ~26.9 times
• Peers: Favorably placed compared to peer Premier Energies, which is an integrated solar PV manufacturers with 4.13 GW of solar module and 2 GW of solar cell capacity and quotes at a PE of 195x.
• The company has received a tier-1 PV module maker rating from the Bloomberg New Energy Finance between FY2018 and FY2024. Some of the company’s labs are accredited by the NABL.
• Waaree is India’s largest solar module exporter,. Exports accounted for 40% of Q1FY25 revenues.
• While they supply to a large customer base globally USA accounted for 99.60% of total exports in FY24. Hence setting a plant in USA.
• Many countries are implementing several policies to reduce their reliance on China for PV product. This should help the company.
• I intend to apply in Waaree Energies IPO. As the Largest solar PV module manufacturer in India well, company is well positioned to capture industry tailwinds and growth prospects for solar energy in India and globally. Company has already embarked on a Huge Capacity Increase coupled with Backward Integration. This is a case of both good value and good growth prospects.
• GMP as reported on social media was 1375 (92%)
• This post is exploratory and educational purposes only.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.