Waaree Energies Ltd. has made headlines once again, with a significant acquisition of Kamath Transformers Pvt. Ltd. for ₹293 crore, aimed at scaling its capabilities in the power sector. This move is in alignment with the company’s aggressive growth and diversification strategy in the Indian energy and infrastructure space. Additionally, the company also announced its acquisition of Green New Delhi Forever Energy Pvt. Ltd., reinforcing its position in the Independent Power Producer (IPP) framework. These developments come on the back of the company’s record-breaking financial performance in the latest quarter.

Acquisition of Kamath Transformers Pvt. Ltd.

In a board meeting held on Monday, May 20, Waaree Energies' board gave the green signal to acquire 100% equity in Kamath Transformers Pvt. Ltd. for a total cash consideration of ₹293 crore.

• Kamath Transformers, a company established in May 1996, has built a strong foundation in transformer manufacturing.

• The company has shown impressive revenue growth, scaling from ₹25.73 crore in FY22 to ₹122.68 crore in FY24, reflecting a growth of nearly 376% in two years.

This acquisition is expected to significantly enhance Waaree’s capabilities in the energy infrastructure value chain, especially in power transmission and distribution, which are critical for the growing demand in renewable and conventional energy sectors.

Entry into the Transformer Segment

Waaree Energies’ core strength lies in solar energy solutions including solar panels and EPC services. However, this acquisition marks a strategic diversification into the transformer manufacturing business, enabling it to become a more vertically integrated power solutions provider.

By acquiring a company with a strong legacy and operational infrastructure, Waaree Energies can:

• Reduce dependency on external vendors for transformer equipment.

• Improve overall efficiency in solar project execution.

• Tap into new revenue streams through third-party transformer sales.

Acquisition of Green New Delhi Forever Energy Pvt. Ltd.

The board also approved the acquisition of Green New Delhi Forever Energy Pvt. Ltd., a recently incorporated non-operational company, through its wholly-owned subsidiary, Waaree Forever Energies Pvt. Ltd.

This move is intended to facilitate specific power projects under the IPP (Independent Power Producer) framework. Though the entity is currently non-operational, it will serve as a special purpose vehicle (SPV) to manage and execute solar and renewable energy projects under Waaree’s growing IPP business.

This will give Waaree the financial and operational flexibility to raise project-specific capital, attract investors, and structure deals more efficiently.

Financial Highlights: A Record Quarter

These acquisitions come close on the heels of Waaree Energies’ strongest quarterly performance to date, with the company posting:

• EBITDA of ₹920 crore

• Net profit of ₹620 crore

• EBITDA margin of 23%, which is an 879 basis point improvement over the previous year

The impressive margin was attributed to the successful commissioning of a new 1.4 GW cell manufacturing facility, enabling the company to manufacture high-margin DCR (Domestic Content Requirement) modules, which are in strong demand for government projects.

Moreover, Waaree’s Q4 production reached 2.1 GW, a 53% jump from the previous year, showcasing robust operational capacity and strong market demand.

Share Performance and Lock-In Period Update

On Tuesday, May 20, Waaree Energies shares were trading 2% higher at ₹3,008 apiece, after touching a 3% intraday gain earlier in the session. However, the stock still remains below its 52-week high of ₹3,743.

It’s worth noting that Waaree’s six-month post-listing lock-in period ended on April 25, releasing 15 crore shares into the market. Despite the increase in floating stock, the company’s strong performance and acquisition plans have helped maintain investor interest.

What This Means for the Market and Investors

These recent moves by Waaree Energies signify a strategic expansion into complementary business segments that not only enhance the company’s core operations but also create new long-term value opportunities.

• The Kamath Transformers acquisition positions Waaree in the critical equipment manufacturing segment of the energy industry.

• The acquisition of Green New Delhi Forever Energy strengthens its ability to operate under the IPP model, allowing for independent power generation and project execution.

• Coupled with strong quarterly earnings, these developments point to solid fundamentals and an optimistic outlook for the company in both the short and long term.

Conclusion: A Power-Packed Future Ahead

With its consistent focus on scaling operations, vertical integration, and financial discipline, Waaree Energies is setting a benchmark for growth in the renewable energy and infrastructure sector.

Its dual acquisition strategy not only secures its upstream supply but also enhances its project execution capability under the IPP umbrella, positioning the company as a comprehensive energy solutions provider in India’s evolving power landscape.

Investors will be keenly watching how Waaree integrates Kamath Transformers and rolls out its IPP projects through Green New Delhi Forever Energy Pvt. Ltd., but the momentum and financial strength suggest a bright and stable growth path ahead.

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