Waaree Energies Secures Rs 1,277 Crore from Anchor Investors Before IPO Launch

Waaree Energies, a solar panel manufacturer, has raised Rs 1,277 crore from anchor investors ahead of its initial public offering (IPO). The IPO is set to open for public subscription on October 21 and will close on October 23. The company has allocated 84.96 lakh equity shares to 92 funds at Rs 1,503 each, the highest end of the price range.

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Anchor Investors and Share Allocation

Prominent investors include Goldman Sachs, Abu Dhabi Investment Authority, Morgan Stanley, and several mutual funds like HDFC and ICICI Prudential. Of the total shares allocated to anchor investors, 28.32 lakh shares were given to 17 domestic mutual funds through 45 schemes, representing 33.33% of the total allocation.

The IPO consists of a fresh issue of shares worth Rs 3,600 crore and an Offer For Sale (OFS) of 48 lakh shares valued at Rs 721.44 crore by a promoter and existing shareholders. This brings the total issue size to Rs 4,321.44 crore. Shares worth Rs 65 crore have been reserved for Waaree Energies' employees.

Utilisation of IPO Proceeds

Proceeds from the fresh issue will fund a new manufacturing facility in Odisha for ingot wafer, solar cell, and solar PV modules with a capacity of 6GW. Some funds will also be used for general corporate purposes. The company's market valuation is estimated to exceed Rs 4,300 crore post-issue at the upper price band.

Waaree Energies is a significant player in India's solar energy sector with a total installed capacity of 12 GW as of June 30, 2023. It operates five manufacturing plants located in Surat, Tumb, Nandigram, Chikhli in Gujarat, and Noida in Uttar Pradesh.

Lead Managers and Market Strategy

Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities India Private Ltd, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital are managing the book-running for this issue. The company aims to strengthen its position in the solar energy market through strategic expansions funded by this IPO.

The IPO's price band ranges from Rs 1,427 to Rs 1,503 per share. Waaree Sustainable Finance Pvt Ltd and Chandurkar Investments Pvt Ltd are selling shares under the OFS component. This strategic move is expected to enhance Waaree Energies' growth trajectory in the renewable energy sector.