India's Largest Manufacturer of Solar PV Modules Waaree Energies Files DRHP To Raise Rs 3,000 Cr Via IPO

The Securities and Exchange Board of India (SEBI), the market regulator, has received the Draft Red Herring Prospectus (DRHP) from Waaree Energies Limited, the largest manufacturer of solar PV modules in India as of June 30, 2023, with an aggregate installed capacity of 12 GW. The fresh equity share issue, valued at up to Rs 3,000 Cr, and offer for sale (OFS) of up to 3,200,000 equity shares, each with a face value of Rs 10, make up the company's initial public offering (IPO).

As per the DRHP, the offer for sale (OFS) comprises up to 2,700,000 equity shares by Waaree Sustainable Finance Private Limited (formerly known as Mahavir Thermoequip Private Limited) and other selling shareholders comprise up to 450,000 equity shares by Chandurkar Investments Private Limited and up to 50,000 equity shares by Samir Surendra Shah.

The company intends to use the net proceeds for general corporate purposes and to partially fund the establishment of a 6GW ingot wafer, solar cell, and solar PV module production plant in Odisha, India.
The company has managed to keep its debt load modest and has a strong balance sheet. Revenue from operations rose from Rs 19,530.39 million in FY21 to Rs 67,508.73 million in FY23 at a compound annual growth rate (CAGR) of 85.92%. From Rs 19,830.09 million for FY21 to Rs 29,458.51 million for FY22, and then to Rs 68,603.64 million for FY23, the total income climbed to Rs 34,149.98 million for the three months that ended on June 30, 2023.

The company has a sizable order book for solar PV modules; as of November 30, 2023, the pending order book was 20.16 GW and included 3.75 GW of orders for the US-based subsidiary Waaree Solar Americas Inc. as well as orders from franchisees, exporters, and domestic customers.

The issue's book-running lead managers are Intensive Fiscal Services Private Limited, Axis Capital Limited, Jefferies India Private Limited, IIFL Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited, SBI Capital Markets Limited, and ITI Capital Limited.

As of June 30, 2023, Waaree Energies Limited had a total installed capacity of 12 GW, making it the largest maker of solar PV modules in India. Of all the Indian domestic producers of solar PV modules, the firm earned the second-best operating income in FY23. With a franchisee network spanning all of India and a concentration on the rooftop and MSME business verticals, the company is among the largest retailers in India. The retail network included 284 franchisees in India as of June 30, 2023, and as of March 31, 2021, 2022, and 2023, respectively. As of June 30, 2023, the company's four production plants in Gujarat, India, Tumb, Nandigram, and Chikhli spread across an area of 136.30 acres.