Waaree Energies IPO: Price Band, Key Dates, Financials, Risks, GMP—All You Need To Know

India's biggest solar module manufacturer, Waaree Energies Ltd., will launch its initial public offering on Oct. 21. As per the red herring prospectus, the bidding for anchor investors is expected to take place on Oct. 18.

The company plans to sell shares worth total Rs 4,321.4 crore via a fresh issue and an offer-for-sale. The IPO will comprise a fresh issue of 2.39 crore equity shares worth up to Rs 3,600 crore. The company also has an offer-for-sale of 48 lakh equity shares worth up to Rs 721 crore by promoter selling shareholder.

The price band is fixed between Rs 1,427 and Rs 1,503 per share. At the upper price band, the company is valued at a Rs 43,179 crore market capitalisation.

Out of the total IPO size, 50% is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% is to be allotted to retail individual investors.

• Issue opens: Oct. 21.

• Issue closes: Oct. 23.

• Total offer size: Rs 4,321.4 crore.

• Fresh issue size: Rs 3,600 crore.

• Offer for sale size: Rs 721 crore.

• Face value: Rs 10 apiece.

• Fixed price band: Rs 1,427–1,503 per share.

• Lot size: 9 shares.

• Listing: NSE, BSE.

The pre-IPO shareholding stands at 26,33,31,104 shares. This will increase to 28,72,83,200 shares after the initial public offering.

Promoters selling shareholders, including Waaree Sustainable Finance Pvt., will offload 43.5 lakh equity shares and Chandurkar Investments Pvt. will sell 4.5 lakh equity shares through the offer-for-sale route.

Post-IPO, the promoter and public group shareholding to public shareholding ratio will stand at 64:36 compared to 72:28 previously.

Waaree Energies, founded in 1990 and headquartered in Mumbai, is the parent company of listed Waaree Renewable Technologies. The company has India's largest aggregate solar module manufacturing installed capacity of 12 gigawatts and enjoyed a domestic market share of 20% in fiscal 2024.

The company operates four manufacturing facilities in India, covering a total area of 136.30 acres. These facilities are spread across Surat, Tumb, Nandigram, and Chikhli in Gujarat, India.

As of June 2024, Waaree Energies pending order book of solar PV modules stood at 16.66 GW. This includes domestic orders, export orders, franchisee orders, as well as 3.75 GW of orders for its subsidiary, Waaree Solar Americas Inc., located in the United States. The majority of these orders will be fulfilled by fiscal 2027.

The majority of the proceeds from the IPO as per the red herring prospects will be used to:

• Part finance the cost of establishing the company's 6 GW ingot wafer, solar cell and solar PV module manufacturing facility in Odisha. This financing will be done via an investment in its wholly owned subsidiary, Sangam Solar One Pvt.

• General corporate purposes.

The cost of the project is estimated to be around Rs 9,050 crore, of which Rs 146.67 crore has already been spent by the company in August 2024, the company said.

To finance the remaining cost of Rs 8,903.3 crore, the company plans to utilise Rs 2,775 crore from the IPO's net proceeds. The company will deploy Rs 275 crore, Rs 2,000 crore and Rs 500 crore over the course of fiscal 2025, 2026 and 2027, respectively.

Waaree Energies' revenue, Ebitda, and net profit have grown at a compound annual growth rate of 99.83%, 276.62% and 44.04%, respectively, over the past three years.

The company's margins have also significantly expanded from 3.90% in fiscal 2022 to 12.40% and 13.8% through fiscal 2023 and 2024, respectively.

• The company is highly dependent on certain key customers, with its top 10 customers accounting for over 56% of its total revenues in fiscal 2024.

• The firm's retail sales growth, especially in the commercial, industrial, and residential sectors, relies heavily on the effectiveness of their partnership with franchisees.

• The company is highly dependent on exports, mainly to the United States. In fiscal 2024, export sales stood at Rs 6,569 crore, which is 57.6% of the company's total revenues.

• 90% of the company's raw material is imported from China. Any restrictions on or import duties relating to

• Materials and equipment could adversely affect the business.

Before the issue opened for subscription, the grey market premium for Waaree Energies IPO on Monday morning was Rs 1,510 per share, with an estimated gain of 100.47% over the IPO price.

However, it is important to note that grey market premium are speculative in nature, and are not backed by the exchanges.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.