About the Company:
Waaree Energies Ltd is the largest manufacturer of solar PV modules in India with the largest aggregate installed capacity of 12 GW, as of June 30, 2024.
For Fiscal 2024, Company had the second best operating income among all the domestic solar PV module manufacturers in India.
Company commenced operations in 2007 focusing on solar PV module manufacturing with an aim to provide quality, cost-effective sustainable energy solutions across markets, and aid in reducing carbon foot-print paving the way for sustainable energy thereby improving quality of life.
Over the years, Company has significantly expanded our aggregate installed capacity from 4 GW in Fiscal 2022 to 12 GW, as of June 30, 2024, as evidenced by our ability to quickly complete our expansion plans efficiently.
Subsequent to June 30, 2024, Company has commissioned 1.3 GW of solar module manufacturing facility at Noida, Uttar Pradesh through our subsidiary, Indosolar Limited.
Company’s solar PV modules are currently manufactured using multicrystalline cell technology, monocrystalline cell technology and emerging technologies such as Tunnel Oxide Passivated Contact (“TopCon”) which helps reduce energy loss and enhances overall efficiency.
Company’s Portfolio of solar energy products consists of the following PV modules:
- Multicrystalline modules.
- Monocrystalline modules.
- TopCon modules.
Company’s Manufacturing Facilities:
Company operates four manufacturing facilities in India spread over an area of 136.30 acres.
Company’s factories are located at Surat, Tumb ,Nandigram and Chikhli in Gujarat, India.
Company’s Strengths:
Company’s Sales and Revenue channels include:
- Direct Sales to Utilities and Enterprises.
- Export Sales, which includes solar PV module sales to international customers as well as international EPC revenue.
- Retail Sales (comprising franchisee sales), which includes solar PV module sales through our extensive franchisee network focused on rooftop and MSME customer business vertical as well as franchisee EPC revenue.
- Other Revenue from Operations, which includes EPC services for domestic utilities and enterprise customers, O&M services, trading in ancillary products, export incentives, generation of electricity from renewable resources and scrap sale.
Company’s Ongoing and Proposed Capacity Expansion Plans:
1) 7 GW of proposed module capacity includes fully integrated 6 GW facility for the manufacture of ingots, wafers, solar cells and solar PV modules and I GW of Indosolar facility.
(2) Could be further expanded to 3 GW of solar module manufacturing facility by Fiscal 2026 and 5 GW of solar module manufacturing facility by Fiscal 2027.
Company’s EPC and O&M Solutions:
Leveraging company’s expertise in manufacturing high quality solar modules and substantial experience in the solar industry, we provide EPC solutions as a contractor.
Company’s EPC solutions include setting up of ground mount, rooftop and floating solar projects across our network in association with other Indian and international partners.
Company has over 10 years of experience as an EPC contractor with a track record of 1.1 GW of projects commissioned, including over 178 rooftop projects commissioned and 1.2 GW of projects under execution, as of June 30, 2023.
Company’s Order Book:
Company has substantial order book of solar PV modules and as of November 30, 2023, Company’s pending order book of solar PV modules was 20.16 GW which included domestic orders, export orders, and franchisee orders and 3.75 GW of orders for our Subsidiary, Waaree Solar Americas Inc. located in the United States.
Competitors in the Business:
Company’s key competitors across business business verticals include Vikram Solar Ltd, Mundra Solar Pvt Ltd (Adani), Premier Energies Ltd, RenewSys India Pvt Ltd, Emmvee Photovoltaic Power Pvt Ltd and Alpex Solar Private Ltd.
Key domestic solar module manufacturers with capacity:
Management Team:
- Mr. Hitesh Chimanlal Doshi (Designation: Chairman and Managing Director)
- Mr. Viren Chimanlal Doshi (Designation: Whole-time Director)
Objectives of the Issue:
Offer For Sale: (Rs.721.4 cr)
- Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to their respective portion of proceeds of the Offer for Sale.
Fresh: (Rs. 3600 cr)
- Part finance the cost of establishing the 6GW of Ingot Wafer, Solar Cell and Solar PV Module manufacturing facility in Odisha, India.
- General corporate purposes.
Schedule of implementation
Positives for the Company:
Largest solar PV module manufacturer in India well positioned to capture the growth prospects for solar energy in India and globally.
- Company is one of the major players in the solar energy industry in India focused on solar PV module manufacturing, with an aggregate installed capacity of 12 GW, as of June 30, 2024. Subsequent to June 30, 2024, we have commissioned 1.3 GW at our Indosolar Facility.
- Company is also in the process of setting-up a fully integrated 6 GW facility for the manufacture of ingots, wafer, solar cells and PV modules which is expected to commence commercial operations in Fiscal 2027. We will continue to focus on further integrating our operations and benefit from economies of scale, and improve operating margins.
Track record of manufacturing quality and technologically advanced solar PV modules.
- Over the years company has developed a track record of manufacturing quality and technologically advanced solar PV modules at our certified manufacturing facilities.
- Company’s manufacturing facilities at Tumb and Surat are certified with ISO 9001:2015 for manufacture, marketing, and supply of solar photovoltaic modules.
- Company’s manufacturing facility at Tumb is certified with ISO 45001:2018 for manufacture, marketing, supply and installation of solar photovoltaic modules.
- Company’s solar PV modules manufactured at all the four manufacturing facilities have been provided a certificate of conformity by Eurotech Assessment and Certification Services Limited to meet the European Council & Standards.
Company’s Export Revenue is Increasing Exponentially.
- Company generated Rs.646.6 crores Rs.4554.9 crores, Rs.6543.1 crores, representing 98.30%, 98.67%, 99.60%, respectively of our Export Sales for Fiscal 2022, 2023 and 2024.
Company has Extensive Experience in the solar PV module manufacturing business.
- Company has extensive experience in the solar PV module manufacturing business, deep market penetration together with significant and regular capacity expansion of our solar PV module manufacturing as well as backward integration into manufacturing of solar cells, position us well to capture the growing demand for solar energy products domestically and internationally.
Diversified base of global and Indian customers with a substantial order book.
- Company’s leadership position enables us to offer competitive pricing for our products, which in turn facilitates access to a large and diversified customer base and revenue generation from such customers.
- Company has over the years established relationships with a diversified set of customers globally and within India.
- In addition to company’s large utility and enterprise customer base in India, we have successfully developed a large customer base globally and our products are sold globally, including to customers in the United States, Canada, Italy, Hong Kong, Turkey and Vietnam.
Government of India has taken Certain Regulatory steps to Boost the Domestic Solar Manufacturing in India.
- •Performance linked incentive scheme: The National Program on High-Efficiency Solar PV Modules is a government-backed initiative to promote domestic manufacturing of Solar PV modules and cells in India.
- The PLI scheme offers incentives to eligible manufacturers based on their annual production of high-efficiency solar PV modules and cells.
- The scheme is expected to reduce India’s dependence on imported solar modules, and to make solar power more affordable for Indian consumers.
- • Basic Customs Duty: The GoI imposed a basic customs duty of 40% on solar modules and 25% on solar cells on April 1, 2022.
- This was done in an effort to boost domestic manufacturing of solar components and reduce India’s reliance on imports.
- The Basic Customs Duty applies to all imports of solar modules and cells, regardless of the country of origin.
China Plus One strategy is helping Indian Companies to take the benefit from the boom in Solar Industry.
- China Plus One strategy encourages companies to diversify their operations by expanding outside of China while still maintaining a presence in the country.
- This strategy is becoming increasingly popular in the solar industry, as companies look to reduce their dependence on China and diversify their supply chains.
- India is one of the potential destinations for solar manufacturing due to its low labour cost as well as favourable political and regulatory environment for manufacturing.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | FY 24 | 30th June 24 |
|---|---|---|---|---|---|
| Revenue | 1983.0 | 2945.8 | 6860.3 | 11,632.7 | 3496.4 |
| Net Profit | 45.6 | 79.6 | 500.2 | 1274.3 | 401.1 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Waaree Energies Ltd | 10 | 47.86 | 31.40 | 30.36% | 154.96 |
| Websol Energy System Ltd | 10 | (-6.31) | N.A. | N.A. | 0.05 |
| Premier Energies Ltd | 10 | 5.48 | 151.13 | 37.46% | 14.63 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 21st October 2024 |
| Issue Closes on | 23rd October 2024 |
| Issue Price | Rs.1427 -1503 |
| Face Value | Rs.10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 9 Shares |
| Minimum Investment | Rs.13,527 |
| Issue Constitutes | 10.06% |
| Issue Size | Rs.4321 ($514 Million) |
| Market Cap | Rs.42,940 cr ($5.1 Billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 2,39,52,95 (Rs.3600 cr) |
| Equity Shares Offered (OFS) | 48,00,000 (Rs.721.6 cr) |
| Total Equity Shares Offered (Fresh + OFS) | 2,87,52,095 (Rs.4321 cr) |
| Equity Shares Prior to the Issue | 26,17,38,912 |
| Equity Shares after the Issue | 28,56,91,007 |
Important Dates:
| Finalization of Basis of Allotment | On or Before 24th October 2024 |
| Initiation of Refunds | On or Before 25th October 2024 |
| Credit of Equity Shares: | On or Before 25th October 2024 |
| Listing Date: | On or Before 28th October 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 47.86 | 31.40 | 30.36% | 154.96 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? |
|---|
| Waaree Energies Ltd stands tall as India’s premier solar PV module manufacturer, boasting an unparalleled aggregate installed capacity of 12 GW, positioning itself as the largest in the country. Notably, in Fiscal 2023, the company achieved the second-highest operating income among domestic solar PV module manufacturers, showcasing its robust financial performance and operational efficiency.
With a track record of delivering top-notch, technologically advanced solar PV modules, Waaree Energies Ltd has garnered a reputation for manufacturing excellence. Its commitment to quality has enabled it to secure a significant share of the Indian and global solar energy market, with exponential growth in export revenue. As the solar energy sector continues to witness rapid expansion both domestically and internationally, Waaree Energies Ltd is strategically positioned to capitalize on these growth prospects. Given its stellar performance and promising future outlook, Markets Guruji recommends subscribing to its IPO, underscoring the company’s potential for investors seeking exposure to the burgeoning solar energy industry. |
| Company Contact Info: |
|---|
| Waaree Energies Ltd 602, 6th Floor, Western Edge – I, Western Express Highway, Borivali (East), Mumbai – 400 066, Maharashtra, India. Telephone: +91 22 6644 4444 Email: investorrelations@waaree.com Website: www.waaree.com |
| Registrar to the Issue: |
|---|
| Link Intime India Private Limited C-101, 247 Park LBS Marg, Surya Nagar, Gandhi Nagar Vikhroli (West) Mumbai – 400 083 Maharashtra, India Telephone: +91 81081 14949 E-mail: waaree.ipo@linkintime.co.in Website: www.linkintime.co.in |
| Check IPO Allotment Status: |
|---|
Link InTime Website (Click on the below Link)https://linkintime.co.in/IPO_Allotment_Check |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
