Waaree Energies Limited ("WEL") stands as India’s largest manufacturer of solar PV modules, boasting the highest aggregate installed capacity of 12 GW as of June 30, 2024. Founded in 2007, WEL is dedicated to providing quality, cost-effective sustainable energy solutions across markets, contributing to a reduced carbon footprint and improved quality of life.

Investment Details

The Waaree Energies IPO consists of a Book Built Issue amounting to ₹4,321.44 Crores, including a Fresh Issue of 239.52 Lakh Shares valued at ₹3,600.00 Crores and an Offer for Sale of 48.00 Lakh Shares, totaling ₹721.44 Crores. The subscription period opens on October 21, 2024, and closes on October 23, 2024. Allotment is anticipated on October 24, 2024, with shares to be listed on the BSE and NSE around October 28, 2024.

The share price band is set between ₹1,427 to ₹1,503 per equity share, with a minimum lot size of 9 shares. Retail investors will need to invest a minimum of ₹13,527, while High-Net-Worth Individuals (HNIs) must invest in 15 lots (135 shares), totaling ₹2,02,905.

The book-running lead managers for this IPO include Axis Capital Limited, IIFL Securities Limited, Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Private Limited, SBI Capital Markets Limited, Intensive Fiscal Services Private Limited, and ITI Capital Limited. Link Intime India Private Limited serves as the registrar for the issue.

Grey Market Premium and Allotment Status

The Grey Market Premium (GMP) for the Waaree Energies IPO is currently estimated at ₹497, reflecting investor sentiment based on the company's financial performance. It’s important to remember that trading based on GMP is speculative and does not guarantee price discovery prior to the listing. The GMP is provided for educational and informational purposes only.

Investors can easily check their allotment status by following these steps:

Visit the IPO allotment status page.

Select Waaree Energies Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to check your allotment status.

Objectives of the Waaree Energies IPO

Proceeds from the Fresh Issue will be utilized for:

₹27,750.00 Million to part-finance the establishment of a 6GW Ingot Wafer, Solar Cell, and Solar PV Module manufacturing facility in Odisha, with a total project cost of ₹90,499.59 million.

General corporate purposes.

Company Overview and Financial Performance

Waaree Energies Limited has solidified its position in the renewable energy sector with a strong management team led by Mr. Hitesh Chimanlal Doshi, Chairman and Managing Director, who brings over 23 years of engineering industry experience. Along with Mr. Viren Chimanlal Doshi, who has 15 years of experience, and Mr. Hitesh Pranjivan Mehta, a chartered accountant with over 24 years in solar and oil industries, the leadership is well-equipped to drive the company's growth.

Financially, Waaree Energies has demonstrated significant growth:

Revenue for FY24 reached ₹1,16,327.63 Million, compared to ₹68,603.64 Million, ₹29,458.51 Million, and ₹19,830.09 Million in FY23, FY22, and FY21, respectively.

EBITDA figures for FY24 were ₹18,095.77 Million, rising from ₹9,441.34 Million in FY23.

Profit After Tax (PAT) surged to ₹12,737.71 Million in FY24 from ₹4,994.55 Million in FY23.

For the Waaree Energies IPO, the pre-issue Earnings Per Share (EPS) stands at ₹47.86, while the post-issue EPS is ₹43.06. The pre-issue Price-to-Earnings (P/E) ratio is 31.40x, and the post-issue P/E is 34.90x, compared to an industry average of 151.13x. The company reported a Return on Capital Employed (ROCE) of 26.29% and a Return on Equity (RoE) of 30.26% for FY24, indicating a favorable valuation.

The Grey Market Premium (GMP) suggests potential listing gains of 33%. However, considering the company's performance and the IPO's valuation, we recommend that only risk-tolerant investors consider applying for the Waaree Energies Limited IPO for potential listing gains or long-term investment purposes.

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