One of the leading solar manufacturing companies in India, Waaree Energies Limited made a big announcement to excite investors. Waaree aims to raise an Initial Rs 2,000 crore via its Initial Public Offering(IPO) by the end of this financial year. In a recent interview with Moneycontrol, Hitesh Chimanlal Doshi, Chairman and Managing Director of Waaree Energies Limited confirmed the IPO news.
In addition to the IPO announcement, Waaree will be commissioning its unit of electrolyser manufacturing in the coming financial year 2025. The company is planning to expand EV batteries by starting its own cell manufacturing unit.
Currently, Waaree Energies Ltd is working on their (DRHP) Draft Red Herring Prospectus. Once all the documents are filed and compliances are fulfilled, the IPO will be launched by the end of the financial year.
Waaree Energies IPO: An Overview
One of the largest solar panel manufacturing units of Waaree Group is Waaree Energies Limited. The company actively works in other areas including solar power system operation & management, installing rooftop solar panels, floating solar, and ground-mounted.
Waaree has filed an IPO of Rs. 1500 crore with SEBI, a fresh issue of Rs, 1350 crore and Rs. 150 crore on offer for sale. Early Investors and company promoters will aim to offer approximately 40,00,000 equity shares under the category of offer for sale. The opening date, face value and price band are still to be officially announced by the company.
Strength of Waaree Energies
- A leading manufacturer of solar panels in India with established strong industry profit and revenue to showcase progressive growth prospects
- Under the rooftop segment of business, the company deals with the pan India franchise network with a larger user base
- Top-quality manufacturing control and equipment with rated global accreditations.
Waaree Renewable Technologies marked the revenue for FY 2022-23 of 351 crore and 55.3 crore net profit. As the company’s financials are strong, the IPO announcement may scale the Waaree Energies Ltd share price.
As per Economics Times, Waaree has already raised Rs 1,000 crore from private investors and approved Rs. 19,500 crore from the PLI scheme. Through the upcoming IPO, Waaree got its financial level up to invest in the planned project with a definite road map of success.
Are there Any Challenges for Waaree?
In the current scenario, grid connectivity becomes a challenging factor for Indian manufacturers across states. Another difficulty may arise due to land acquisition due to limited resources and viable prices.
However, these challenges are more industry-centric and Waaree Energies will overcome them with prolonged experience in manufacturing. Expansion outside India will also assist the business in enhancing production and timely deliveries.
Business Expansion Plans of Waaree Energies Ltd
Ahead of Waaree’s IPO, the company took several decisions based on expansion to project better growth. Further, Waaree will open a manufacturing plant outside India, probably in Texas, United States. Indian manufacturers are forced to export their production as China slashes the price.
For solar manufacturing, the company may expand in two phases, the first benchmark of 12 gigawatts capacity and the next setting of 5.4 solar cells by 2024. The second plan of action is to set up a 6 GW ingot-to-wafer-to-module manufacturing unit; the most probable timeline would be 2025. Recently, Waaree has qualified under the scheme of the Ministry of New and Renewable Energy (MNRE) – production-linked incentive (PLI) scheme.
Looking at the strategic investment of Waaree, investors are setting high expectations from the company IPO. The upcoming project can diversify the financials and add more revenue to the balance sheet. EV battery expansion can also be favoured as the demand for electric vehicles grows at a rapid rate. Probably, pre and post-IPO, Waaree Energies Ltd share price might rise.
IPO – Investment for Upcoming Projects
Waaree Energies has built a growth plan to invest in their set project of a 6 GW ingot-to-wafer-to-module manufacturing unit, overseas expansion, and might be getting into the electrolyser manufacturing business in India. An initial Public Offer can help to raise new funds for further investment. Investors will look at the broader perspective and might predict that Waaree Energies Ltd share price will increase. Looking at the possible positive side of the company’s growth strategy, there is a high chance that Waaree might get an estimated investment through the upcoming IPO.
Should You Invest In Warree Unlisted Shares Before Its IPO?
It would be interesting to watch how Waaree Energies IPO will perform. Investors are ready with their own expectations whether Waaree Energies Ltd share price rises or falls.
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