Waaree Energies Limited, India’s largest manufacturer of solar PV modules, is set to launch its highly anticipated IPO on October 21, 2024. As a company founded in 2007, Waaree Energies has established itself as a leader in solar energy solutions with a robust installed capacity of 12 GW as of June 2024. The IPO is expected to be a significant event in India's renewable energy sector, given Waaree’s commitment to providing cost-effective and sustainable energy solutions that align with the nation’s green energy goals. The IPO is structured as a book-built issue amounting to ₹4321.44 crores, and includes both a fresh issue and an offer for sale.

Key Details of Waaree Energies IPO

  ▪ IPO Opening Date: October 21, 2024

  ▪ IPO Closing Date: October 23, 2024

  ▪ Issue Size: ₹4321.44 crores

  ▪ Fresh Issue: ₹3600 crores (239.52 lakh shares)

  ▪ Offer for Sale: ₹721.44 crores (48.00 lakh shares)

  ▪ Price Band: ₹1,427 - ₹1,503 per share

  ▪ Minimum Investment (Retail): ₹13,527 (9 shares)

  ▪ Listing Date: Tentative, October 28, 2024

  ▪ Exchanges: BSE and SME

The IPO price band has been set between ₹1,427 and ₹1,503 per share, with retail investors needing to invest a minimum of ₹13,527 for one lot (9 shares). HNIs are required to purchase 15 lots, equivalent to 135 shares, which amounts to ₹2,02,905. The book-running lead managers for this IPO are reputable institutions including Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory, among others. Link Intime India Private Limited has been appointed as the registrar.

Objectives of the Issue

The funds raised from the IPO will be utilized primarily for two purposes:

 1. Part-financing the establishment of a 6GW manufacturing facility in Odisha, which will produce Ingot Wafer, Solar Cells, and Solar PV Modules.

 2. For general corporate purposes.

This significant capacity expansion is expected to strengthen Waaree Energies' position in the solar industry, helping the company meet increasing demand for solar power in India and abroad.

Financial Performance of Waaree Energies

Waaree Energies has shown strong financial growth over the past few years. In Fiscal 2023, the company reported revenues of ₹68,603.64 million, a substantial increase from ₹29,458.51 million in 2022 and ₹19,830.09 million in 2021. Similarly, EBITDA figures have also demonstrated a sharp upward trend, with ₹9,441.34 million in 2023 compared to ₹2,025.32 million in 2022. The Profit After Tax (PAT) for 2023 stood at ₹4,994.55 million, showcasing Waaree Energies’ operational efficiency and profitability.

The company's Return on Capital Employed (ROCE) for FY23 was 31.61%, and its Return on Equity (RoE) was 26.26%, both indicators of strong profitability and growth potential. The IPO has a pre-issue EPS of ₹21.57 and a post-issue EPS of ₹16.80, with the P/E ratios at 69.68x and 89.46x, respectively.

Grey Market Premium (GMP) of Waaree Energies IPO

The Grey Market Premium (GMP) of Waaree Energies IPO is currently expected to be between ₹494 to ₹497, signaling potential listing gains of around 30%-33%. While the GMP provides some insight into market sentiment, it is crucial to remember that GMP is not an official indicator, and trading in the grey market should not form the sole basis for investment decisions.

For educational purposes, the Grey Market Premium (GMP) can provide investors with a sense of potential listing gains, but caution is always advised when relying on such speculative data.

Subscription and Allotment Information

The subscription period for the Waaree Energies IPO runs from October 21, 2024, to October 23, 2024. Investors will be able to check the IPO allotment status online starting October 24, 2024, via the registrar’s website. The process for checking allotment is simple: investors need to visit the allotment status page, select Waaree Energies from the list of IPOs, and enter either their application number, PAN, or DP Client ID.

The shares are expected to be listed on October 28, 2024, on both the BSE and SME exchanges, making it a key date for investors to watch.

Investment Recommendation

Given the company's consistent financial performance, solid industry presence, and growth potential in India's booming solar sector, Waaree Energies Limited IPO could be an attractive option for risk-tolerant investors seeking listing gains or those with a long-term investment horizon. However, investors should carefully consider their individual risk appetite and investment goals before applying.

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