Waaree Energies IPO: Review, Valuation, Date & GMP

Waaree Energies IPO-Complete Overview

Waaree Energies IPO a Mainboard IPO is a book-built issue of Rs.4,321.44 crore (28,752,095 Shares) by Waaree Energies Ltd. It is an Indian company founded in December 1990, that produces solar PV modules with a combined installed capacity of 12 GW.

The following PV modules make up the solar energy products' product lineup:

1. Multicrystalline Modules

2. Monocrystalline modules

3. TopCon modules are comprised of building-integrated photovoltaic (BIPV) and flexible bifacial (Mono PERC) modules in both framed and unframed versions.

The company has four production plants in India that together occupy 136.30 acres as of June 30, 2023. These facilities can be found in Gujarat, India, specifically at Surat, Tumb, Nandigram, and Chikhli.

The company is the largest manufacturer of solar PV modules in India with the largest aggregate installed capacity of 12 GW, as of June 30, 2024.

The Tumb plant holds ISO 14001:2015 and ISO 45001:2018 certifications for the production, distribution, and installation of solar photovoltaic modules. The Chikhli plant has ISO 9001:2015, ISO 45001:2018, and ISO 14001:2015 for the production, distribution, and marketing of solar photovoltaic modules. For its PV modules, the company also complies with many safety regulations.

In India, the company provided services to 1,381, 716, 566, and 373 clients as of March 31, 2021, 2022, and 2023, and June 30, 2023, respectively. During the same periods, the company served 31, 26, 33, and 20 consumers outside of India.

This new IPO is to be launched on 21 October 2024, and the initial public offering of this upcoming IPO will end on 23 October 2024.

Detailed Video:

 

Waaree Energies IPO Details

The Rs.4,321.44 crore Waaree Energies IPO comprises a fresh Issue of 2.4 crore Shares (Rs.3,600 Cr) and an offer for sale (OFS) of 0.48 crore Shares (Rs.721.44 Cr).

The IPO date is from 21 October to October 23, 2024. The IPO listing date is on Monday, October 28, 2024, and it will be listed at BSE and NSE. Waaree Energies IPO price band is Rs.1427 to Rs.1503 for each Share.

Waaree Energies IPO parent company

Waree Energies itself is the parent company of this energy IPO. Its subsidiary is Waree Renewables Technologies Ltd.

Waaree Energies IPO shareholders quota

The shareholder's quota of this IPO is 35% allocated to retail investors, 50% to institutional investors (QIB), and 15% to non-institutional investors (NII). 

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Waaree Energies: Product Portfolio

Multicrystalline cell-based solar PV modules are manufactured by the company. Its energy loss is reduced, and its efficiency is improved by technology and developing technologies like Tunnel Oxide Passivated Contact (TOPCon).

Its portfolio for solar energy products comprises the following types of PV modules: (i) multi-crystalline modules; (ii) monocrystalline modules and (iii) TOPCon modules comprising flexible modules, including bifacial modules (Mono PERC) framed and unframed as well as building-integrated photovoltaic (BIPV) modules.

PV Module

A solar module, also known as a photovoltaic (PV) module, is a group of solar or PV cells installed in an installation framework. Solar panels provide direct current power by harnessing the energy of the sun.

Currently, monocrystalline, multicrystalline, and TopCon technologies are used in the production of our PV modules.

Multicrystalline technology- Using many crystals in a single solar cell is known as multicrystalline technology. These crystals are essentially silicon wafers made by slicing very thin slices of silicon boules or ingots.

Monocrystalline technology- A technique using only one crystal. Utilizing cutting-edge technology, monocrystalline technology raises the efficiency of conventional solar modules. The fact that the cells are composed of a single crystal gives the electrons that create an electric current more space to travel. Consequently, they are more efficient.

TOPCon technology- The production of solar PV cells has significantly improved thanks to TOPCon technology. This required adding a small layer of tunnel oxide, which passivates the surface and reduces recombination losses to boost the solar cell's efficiency. By reducing the amount of carrier recombination at the interface

 

 

 

Company Financial

The company’s revenue grew by 70% and PAT increased by 155% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in million)

 

Revenue Bifurcation From Direct Sales Utilities and Enterprises During the Last Three FYs

(Values in millions)

 

Revenue Bifurcation From Direct Sales Utilities and Enterprises

(Values in millions)

 

Revenue Bifurcation From Export Sales During the Last Three FYs

(Values in millions)

 

Revenue Bifurcation From Retail Sales During the Last Three FYs

(Values in millions)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• The construction of a 6GW ingot wafer, solar cell, and solar PV module manufacturing facility in Odisha, India (Project) is partially financed.

• Corporate Purposes.

 

Peers of Waaree Energies Ltd.

Evaluation

Waaree IPO price is between Rs.1427 to Rs.1503 for each Share.

Evaluation of P/E Ratio

Considering the period of FY 2024, with an EPS of Rs.48.05 from the last year, the resulting P/E ratio is 31.28x.

Considering the weighted EPS of Rs.31.94 for the last three years, the P/E ratio is 47.05x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 151.13x.

 

 

IPO's Strengths 

• India's largest producer of solar PV modules, well-positioned to take advantage of market trends and future growth opportunities for solar energy both domestically and internationally.

• An extensive pan-Indian retail network.

• A diversified base of global and Indian customers with a sizable order book.

• Sophisticated manufacturing facilities with international accreditations.

• A consistent track record of financial performance.

• An accomplished senior management team with proven execution skills and a dedicated workforce.
  
  

IPO’s Weaknesses 

• The company stated in its RHP that because of its export sales, it is subject to the risks and uncertainties associated with operating in several international markets, including the US. The business also stated that export sales account for a large portion of its operating revenue.

• Additionally, the company stated in the DRHP that its capacity to increase retail sales in the residential, commercial, and industrial sectors would depend on the success of its franchisee relationships. Failure to sustain or grow its retail network would also hurt the company.

• The company added that since some of its raw materials are imported from China, any limitations or import taxes on raw materials would probably harm its prospects for business.

• The company went on to say that to manufacture its products, it is mostly dependent on outside suppliers of raw materials and components. Any interruption in the supply chain, such as changes in component costs, could harm the operations of the organization.

 

Waaree Energies IPO GMP 

Waaree Energies IPO GMP today is Rs.1365 as of 16 October 2024. With a price of Rs.1503 per Share, the estimated IPO listing price is Rs.2868 when writing this information

Waaree Energies IPO Timetable (Tentative)

The IPO open date is from October 21 to October 23, 2024, with IPO allotment on October 24, 2024, refund initiation on October 25, 2024, and listing on Monday, October 28, 2024.

 

Waaree Energies IPO Details 

The IPO with a face value of Rs.10 per Share offers a total issue size of 28,752,095 Shares and will be listed at BSE and NSE.

Waaree Energies IPO lot size and price

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (9 Shares) amounting to Rs.13,527 and 14 Lots (126 Shares) amounting to Rs.1,89,378 respectively, while for HNI investors, the minimum Lot is 15 (135 Shares) amounting to Rs.2,02,905.

Waaree Energies IPO Reservation

Promoters and Management of Waaree Energies Ltd. 

• Hitesh Chimanlal Doshi

• Viren Chimanlal Doshi

• Pankaj Chimanlal Doshi

• Waaree Sustainable Finance Private Limited

 

Waaree Energies IPO Lead Managers

• Axis Capital Limited

• IIFL Securities Ltd.

• Jefferies India Private Limited

• Nomura Financial Advisory And Securities (India) Pvt Ltd.

• SBI Capital Markets Limited.

• Intensive Fiscal Services Private Limited.

• ITI Capital Ltd.
  
  

Dividend Policy

The company has not paid any dividends in the last three fiscals.

 

Conclusion

With its IPO, Waaree Energies might be a smart option as the biggest producer of solar PV modules in India, thanks to its cutting-edge technology and loyal clientele. The company's export-oriented and import-related raw material industry exposes it to certain inherent dangers, notwithstanding its enormous development opportunities. Before investing, investors would be well to consider the advantages as well as any potential drawbacks.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.

  

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