Two of India's top five solar module manufacturers—Waaree Energies Ltd. and Vikram Solar Ltd.—have recently filed their draft red herring prospectus, and plan to list on the Indian stock exchanges soon.
Here's how these two initial public offerings compare to each other and newly listed Premier Energies Ltd.
About The IPOs
Waaree Energies Ltd., the parent entity of listed company Waaree Renewable Technologies Ltd., plans to raise Rs 3,000 crore via a fresh issue, as well as offload promoter stake. The company has received its final regulatory approval from the Securities and Exchange Board of India on Sept. 20, and media reports state that the company is set to launch its IPO in mid-October.
Vikram Solar's IPO, has a fresh issue, half the size of Waaree's offering at Rs 1500 crore. The IPO will also consist an offer for sale for shareholders to offload around 1.75 crore shares. It filed a fresh DRHP with the markets regulator on Oct. 1.
Currently the price bands for both the initial public offerings are not know, therefore, the total size of the issues cannot be calculated.
Premier Energies had raised Rs 2,830.4 crore from its IPO, which was subscribed 74.38 times. The stock closed at a premium of 86% to the IPO price on the listing day.
Use Of Proceeds
Waaree Energies plans to use the IPO proceeds to establish a 6 GW ingot wafer, solar cell, and solar module manufacturing plant in Odisha, as well as for general corporate purposes. The company's aggregate installed capacity stood at 12 GW as of fiscal 2024.
Vikram Solar plans to use around Rs 790 crore of the IPO proceeds for capex, via an investment in the firm's subsidiary VSL Green Power. This money will be used to set up a 3 GW solar cell and module manufacturing facility. Whereas, Rs 600 crore has been be earmarked to expand the company's existing solar module manufacturing facility's capacity from 3 GW to 6 GW.
Market Share
Waaree Energies had the highest market share as per installed capacity in India's solar module sector as of fiscal ending March 2024, Premier Energies had said in its DRHP. Meanwhile, Vikram Solar has similar capacity and market share as the listed green energy player.
In terms of solar cells, Premier Energies leads Waaree Energies and Vikram Solar with a 2 GW capacity.
Financial Performance
All three solar manufacturers, Waaree Energies, Premier Energies, and Vikram Solar posted strong results in the last fiscal. Premier Energies posted the highest revenue growth in the previous fiscal, while also seeing a turnaround in its net profit.
However, in terms of value, Waaree Energies' fiscal 2024 revenue stood higher than that of Premier Energies and Vikram Solar combined.
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