The allotment of shares for the highly anticipated Waaree Energies IPO, a leading Indian solar energy company, is set to be finalized today, October 24, 2024. This IPO generated significant interest from investors, reflecting both confidence in the company and the potential growth of the renewable energy sector in India. The company raised ₹4,321.44 crore, which includes a fresh issue of ₹3,600 crore and an offer for sale of 48 lakh shares.
Waaree Energies is one of India’s largest manufacturers of solar photovoltaic (PV) modules, with an installed capacity of 12 GW. The funds from the IPO will be used to expand its solar module production capacity, including the development of a 6 GW facility in Odisha.
Investor demand for the IPO was strong, with an overall subscription of 79.44 times. The Qualified Institutional Buyers (QIB) segment saw the most enthusiasm, with a subscription rate of over 208 times. Non-Institutional Investors (NIIs) and retail investors subscribed at 62.49 and 10.79 times, respectively. This robust subscription indicates widespread confidence in Waaree’s prospects, particularly as the company is positioned to benefit from India’s increasing focus on renewable energy.
The price band for the IPO was set between ₹1,427 and ₹1,503 per share, with a lot size of nine shares. Grey market trends suggest a significant premium of ₹1,550 to ₹1,570, signaling strong potential listing gains of over 100% when the shares debut on the market on October 28, 2024.
Investors can check their allotment status online by visiting the websites of either the IPO registrar, Link Intime India, or the BSE, using their PAN, application number, or Demat account details. Refunds for unallotted shares will begin tomorrow, October 25, and shares will be credited to successful applicants’ Demat accounts on the same day.
Waaree Energies’ listing is eagerly awaited, especially given its promising market position and the government’s push towards green energy, which positions the company well for future growth.
Waaree Energies Limited: Detailed Portfolio Overview
Company Overview
Incorporated in December 1990, Waaree Energies Limited is a flagship entity of the Waaree Group, specializing in solar photovoltaic (PV) module manufacturing. Headquartered in Mumbai, India, Waaree Energies has grown to become one of the largest solar energy companies in India, with a focus on solar PV modules. As of June 2024, the company boasts a total manufacturing capacity of 12 GW, spread across four plants in Gujarat.
Waaree’s product portfolio includes a wide array of PV modules catering to diverse customer segments, including utility-scale developers, commercial and industrial (C&I) sectors, and rooftop solar installations. The company also engages in significant export activities, catering to clients in countries such as the United States, Canada, Italy, Vietnam, and others
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Key Products and Offerings
Waaree Energies produces multiple types of solar PV modules, tailored for various industry needs:
- Multicrystalline Solar Modules – These are cost-effective options used for large-scale installations, especially in India and other price-sensitive markets.
- Monocrystalline Modules – These provide higher efficiency and are preferred for projects with space constraints or in regions requiring greater energy output.
- TopCon Modules – A new generation of high-efficiency bifacial modules using advanced technology like Mono PERC (Passivated Emitter and Rear Cell). These modules come in both framed and frameless variants and are ideal for large utility-scale installations
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The company also offers building-integrated photovoltaic (BIPV) modules, designed for integration into building materials like facades and windows, promoting aesthetic solar solutions.
Manufacturing and Capacity
Waaree Energies has four state-of-the-art manufacturing plants:
- Surat, Tumb, Nandigram, and Chikhli in Gujarat, India.
- These facilities cover an area of 136 acres and are equipped with advanced technology to produce a range of solar PV products. The Tumb and Chikhli plants are ISO-certified, adhering to international standards for quality, safety, and environmental management
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Waaree’s solar module manufacturing capacity, as of mid-2024, stands at 12 GW, making it the largest solar module manufacturer in India. The company has plans to expand this further with the proceeds from its recent IPO to build a 6 GW solar ingot wafer, solar cell, and module manufacturing facility in Odisha
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Global Reach and Clientele
Waaree Energies serves a diverse client base across domestic and international markets. Domestically, the company has collaborated with top renewable energy firms such as ReNew Power, Hero Solar, Mahindra Susten, and ACME. Internationally, Waaree has a strong presence in the United States, through its subsidiary, Waaree Solar Americas Inc., and exports to various countries in Europe, Asia, and North America
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The company has an extensive distribution network in India, comprising 369 franchisees as of June 2024. This network plays a critical role in expanding Waaree’s market penetration, particularly in the rooftop solar sector and smaller-scale installations.
Financial Performance
Waaree Energies has demonstrated robust financial growth over the past few years, driven by increasing demand for solar power in India and abroad:
- Revenue Growth: In FY 2023, the company reported revenues of ₹6,750 crore, which nearly doubled to ₹11,397 crore by FY 2024.
- Profit Margins: The company’s net income surged to ₹1,274 crore in FY 2024, reflecting strong operational efficiency and growing demand for solar modules. Net profit margins rose from 2.79% in FY 2022 to 11.77% in FY 2025
.
- Order Book: As of June 2024, Waaree’s order backlog stood at an impressive 16.66 GW, reflecting strong future revenue potential, with 3.75 GW of orders secured through its U.S. subsidiary
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Strategic Initiatives and Future Outlook
- Capacity Expansion: A key focus of Waaree Energies is to expand its manufacturing capabilities. The 6 GW facility in Odisha is part of this strategy, funded primarily through its recently completed IPO.
- Technological Advancements: Waaree is heavily invested in upgrading its product offerings, such as the development of TopCon bifacial modules, which are among the most efficient solar technologies currently available.
- Green Hydrogen: Waaree Energies is also exploring opportunities in the production of green hydrogen, which could become a key growth sector in India’s clean energy landscape. This strategic pivot aligns with India’s broader push towards renewable energy independence
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Waaree Energies IPO
The company successfully raised ₹4,321.44 crore in an Initial Public Offering (IPO) in October 2024. The IPO saw significant investor interest, with the issue oversubscribed by 79.44 times. Qualified Institutional Buyers (QIB) subscribed their portion 208.63 times, indicating strong institutional support. The shares were priced between ₹1,427 and ₹1,503 per share, and the retail segment was also oversubscribed by 10.79 times
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The proceeds from the IPO will be utilized for the expansion of Waaree’s production facilities, repayment of debt, and other corporate purposes. The company’s listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) is scheduled for October 28, 2024.
Corporate Governance and Promoters
Waaree Energies is a family-owned company, led by:
- Hitesh Chimanlal Doshi (Chairman and Managing Director)
- Viren Chimanlal Doshi and Pankaj Chimanlal Doshi (Executive Directors)
The company has maintained a strong reputation for corporate governance and operational transparency, factors that have bolstered investor confidence during its IPO.
Conclusion
Waaree Energies is positioned to capitalize on the growing demand for renewable energy in India and globally. Its large manufacturing base, strong financials, and expanding product portfolio make it a key player in the solar energy sector. With its recent IPO and plans for further expansion, Waaree is poised for significant growth in the coming years, especially as India pushes towards achieving its renewable energy targets.
This portfolio outlines Waaree Energies’ current standing and future potential, making it an attractive proposition for investors and stakeholders in the renewable energy space.
10 Things Any Investor Should Know Before Investing in Waaree Energies
- Leading Position in Solar Energy Manufacturing
Waaree Energies is one of India’s largest manufacturers of solar photovoltaic (PV) modules, with a production capacity of 12 GW across four state-of-the-art facilities in Gujarat. This gives the company a significant edge in the rapidly growing renewable energy sector
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- Diversified Product Portfolio
The company offers a range of PV modules, including multicrystalline, monocrystalline, and advanced TopCon bifacial modules. It is also involved in building-integrated photovoltaic (BIPV) modules, showing its ability to cater to varied market needs from utility-scale projects to niche segments.
- High Subscription and Market Confidence
Waaree’s IPO, conducted in October 2024, was highly oversubscribed by 79.44 times, reflecting strong investor confidence. The Qualified Institutional Buyers (QIB) category alone was oversubscribed by 208.63 times, highlighting interest from institutional players
.
- Robust Financial Growth
Waaree has shown consistent revenue and profit growth. In FY 2023, its revenue more than doubled from ₹6,750 crore in FY 2022 to ₹11,397 crore in FY 2024, while net profit margins rose to 11.77% in Q1 FY 2025. Investors should consider this impressive financial trajectory as a positive indicator of the company’s future potential.
- Massive Order Backlog
As of June 2024, Waaree Energies had a substantial 16.66 GW order backlog, including international contracts through its U.S. subsidiary, Waaree Solar Americas Inc. This ensures strong revenue visibility for the company in the near future.
- IPO Utilization for Expansion
A significant portion of the ₹4,321 crore raised through the IPO will be utilized to fund a 6 GW ingot wafer, solar cell, and module manufacturing facility in Odisha. This strategic expansion aligns with India’s growing solar energy ambitions and positions the company to meet increasing demand
.
- Strong Global Presence
Waaree Energies is not just focused on the Indian market. It has an extensive global footprint, exporting products to countries like the United States, Canada, Italy, and Vietnam, among others. This diversification reduces reliance on any single market, providing greater stability.
- Government Push for Renewable Energy
The Indian government is aggressively pushing for renewable energy, targeting 500 GW of non-fossil fuel energy by 2030. As one of the major players in the solar energy sector, Waaree Energies stands to benefit from this policy framework, which includes financial incentives and subsidies for solar manufacturers.
- Competitive Market
Despite its strong market position, Waaree faces stiff competition from other domestic and international players in the solar energy space, such as Adani Solar and Tata Power Solar. Investors need to evaluate how Waaree can sustain its competitive edge, especially in terms of technology and cost-efficiency.
- Grey Market Premium (GMP) and Potential Listing Gains
Waaree Energies’ shares are currently commanding a premium of ₹1,550-₹1,570 in the grey market, indicating potential listing gains of over 105%. However, investors should be aware that while GMP is a useful indicator, it is speculative and market conditions can change by the time of listing
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Conclusion
Waaree Energies presents a compelling investment opportunity due to its leadership in solar manufacturing, robust financial growth, and alignment with government policies supporting renewable energy. However, potential investors should weigh these benefits against market competition and broader industry risks.
FAQs About Waaree Energies
- What is Waaree Energies?
Waaree Energies Limited is a leading Indian solar energy company specializing in manufacturing solar photovoltaic (PV) modules. Established in 1990, the company has grown to become one of the largest producers of solar modules in India, with an installed capacity of 12 GW. Waaree Energies plays a significant role in India’s renewable energy sector and serves both domestic and international markets
.
- What products does Waaree Energies offer?
Waaree Energies offers a wide range of solar PV modules, including multicrystalline, monocrystalline, and TopCon bifacial modules. These modules are used for various applications like utility-scale projects, rooftop installations, and building-integrated photovoltaics (BIPV). The company also manufactures specialized modules for international clients
.
- What is Waaree Energies’ market position in India?
Waaree Energies holds a leading position in India as the largest manufacturer of solar PV modules. With a production capacity of 12 GW, it is a dominant player in the country’s renewable energy sector. Its strong domestic presence is bolstered by partnerships with major renewable energy companies such as ReNew Powerand Hero Solar
.
- Where are Waaree Energies’ manufacturing facilities located?
Waaree Energies operates four manufacturing plants located in Surat, Tumb, Nandigram, and Chikhli in the state of Gujarat, India. These facilities cover 136 acres and are equipped with advanced technology to produce a wide range of solar modules. The company plans to expand its operations by establishing a new 6 GW facility in Odisha.
- Who are Waaree Energies’ key clients?
Waaree Energies serves both domestic and international clients. In India, it partners with prominent renewable energy companies like Mahindra Susten, ACME, and Essel Infra. Internationally, Waaree exports its products to countries like the United States, Italy, Canada, and Vietnam, diversifying its customer base
.
- How has Waaree Energies performed financially?
Waaree Energies has shown impressive financial growth in recent years. The company’s revenue jumped from ₹6,750 crore in FY 2023 to ₹11,397 crore in FY 2024, showcasing strong market demand. Waaree’s net profit also grew, with margins rising from 2.79% in FY 2022 to 11.77% in FY 2025
.
- What was the size of Waaree Energies’ IPO?
Waaree Energies’ Initial Public Offering (IPO) in October 2024 raised ₹4,321.44 crore, which included a fresh issue of ₹3,600 crore and an offer for sale of 48 lakh shares. The IPO was oversubscribed by 79.44 times, signaling strong investor interest
.
- How will Waaree Energies use the funds raised from the IPO?
The proceeds from Waaree Energies’ IPO will primarily be used to fund the development of a 6 GW solar ingot wafer, solar cell, and module manufacturing facility in Odisha. A portion of the funds will also be allocated to reduce debt and for other corporate purposes.
- What is Waaree Energies’ order backlog?
As of June 2024, Waaree Energies has a substantial order backlog of 16.66 GW, which includes both domestic and international orders. This large backlog reflects strong demand for its solar products and provides revenue visibility for the near future
.
- What are Waaree Energies’ global markets?
Waaree Energies exports its products to several international markets, including the United States, Canada, Italy, Hong Kong, and Turkey. Its subsidiary in the U.S., Waaree Solar Americas Inc., helps the company maintain a strong presence in North America, contributing significantly to its export revenue
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- What are the certifications held by Waaree Energies?
Waaree Energies’ manufacturing facilities are certified to various international standards. The Tumb facility holds ISO 45001:2018 and ISO 14001:2015 certifications, while the Chikhli facility is certified with ISO 9001:2015, ensuring high standards of safety, environmental management, and product quality.
- What is the shareholding structure post-IPO?
After the IPO, the promoter holding in Waaree Energies will reduce from 71.80% to 64.30%, reflecting the dilution from the newly issued shares. The promoters include Hitesh Chimanlal Doshi, Viren Chimanlal Doshi, and Pankaj Chimanlal Doshi, along with Waaree Sustainable Finance Private Limited.
- What technology does Waaree Energies focus on?
Waaree Energies focuses on producing high-efficiency solar modules, including monocrystalline PERC (Passivated Emitter Rear Contact) and bifacial TopCon modules. These advanced technologies enhance energy efficiency and are highly sought after in both domestic and international solar projects
.
- What role does Waaree Energies play in India’s renewable energy goals?
Waaree Energies is a key player in India’s renewable energy push, contributing significantly to the country’s solar energy capacity. With the Indian government aiming for 500 GW of renewable energy capacity by 2030, Waaree is well-positioned to meet this growing demand and benefit from supportive government policies
.
- What is Waaree Energies’ grey market premium (GMP)?
As of October 24, 2024, Waaree Energies’ shares were trading at a grey market premium (GMP) of ₹1,550 to ₹1,570, indicating strong demand in the secondary market. This suggests potential listing gains of over 100%, making it an attractive prospect for investors
.
- What are the risks associated with investing in Waaree Energies?
While Waaree Energies is a market leader, it operates in a highly competitive industry with significant players like Adani Solar and Tata Power Solar. Additionally, fluctuations in raw material prices and dependence on government policies for renewable energy incentives pose risks to its profitability.
- Who are the anchor investors in Waaree Energies’ IPO?
Waaree Energies raised ₹1,276.93 crore from anchor investors ahead of its IPO. Prominent domestic and international institutional investors participated in this tranche, reflecting confidence in the company’s growth prospects.
- What is Waaree Energies’ corporate governance like?
Waaree Energies is managed by a family-led board, with Hitesh Chimanlal Doshi as Chairman and Managing Director, supported by other family members in key roles. The company has maintained strong corporate governance practices, ensuring transparency and operational integrity.
- When will Waaree Energies list on the stock exchange?
Waaree Energies is scheduled to list its shares on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on October 28, 2024. Investors are eagerly anticipating this listing, especially given the strong grey market premium and positive market outlook
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- What are Waaree Energies’ plans for future growth?
Waaree Energies is focused on expanding its manufacturing capacity and entering new global markets. The establishment of the 6 GW facility in Odisha is a key part of its growth strategy, alongside exploring opportunities in emerging sectors like green hydrogen production
.
Conclusion
Waaree Energies offers a comprehensive solar energy portfolio, with promising financial performance and strong market leadership. Investors should consider the company’s robust expansion plans, while being aware of the risks posed by market competition and regulatory changes.
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