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Waaree Energies announced acquisition of 5.37mn Series B Preferred Shares of United Solar Holding Inc (USH) for USD30mn, which would provide it stake in USH’s major advanced 100ktpa polysilicon plant in Oman, along with likely anchor customer status, thereby backward integrating it upstream in the PV value chain. While percentage stake is not disclosed, ownership should be under 5%, based on publicly available information and an estimated project cost of USD1.6bn. The plant has the capacity to produce 40GWpa of modules, hence a sizable portion of its 10GW Nagpur wafer-ingot requirement is likely to be met. Being one of the major non-Chinese plants globally and located in the Sohar Freezone (FTA with US, India, etc), the cost curve (though higher than Tier 1 Chinese players’) could be much lower vs other parts of the world, while also meeting US and EU’s traceability requirement. Waaree has stated this is a strategic investment for supporting the rapidly expanding US and global footprint. The plant may be near commissioning and ramp-up to full capacity may happen in 1 year. We await more details from the management, but view this positively. Waaree also commissioned 5.1GW of module capacity in Gujarat in Q3FY26. We retain our estimates and reiterate BUY with TP of Rs4,260.

Transaction expected to be completed by Jan-26 end Waaree’s subsidiary, Waaree Solar Americas, has signed the binding term sheet wrt this transaction, with completion targeted by 31-Jan-2026, subject to customary terms and conditions. USH is the Cayman Island registered holdco of United Solar Polysilicon (USP), which is developing the USD1.6-1.8bn, 100ktpa polysilicon project (40GW of modules) in Sohar Freezone, Norther Oman. It was set up in May-23, with major project construction starting May-24. USH investors includes Longgen Zhang (founder CEO), family and others, IDG Capital, Oman Investment Authority, IFC, and Bank Dhofar.

Next best alternative to Chinese polysilicon, cost-wise This facility is touted as the next best alternative to Chinese makers due to lower energy cost in Oman and its strategic location, while also meeting non-Chinese traceability norms (of US and EU). While the company’s founding investors are of Chinese origin, World Bank’s IFC has invested USD50mn in equity and USD200mn in debt (another USD400mn additional option) in CY25, and its investment document states “the project will expand the global resilience of the polysilicon value chain, by providing additional supply through a new location” (media reports had earlier stated IFC’s US ED citing objection).

An important move in the upstream solar PV value chain for Waaree Per our general checks, the project may be near CoD, though further details wrt Waaree’s volume visibility and stake in this project are awaited. According to funding information publicly available, Waaree’s stake could be under 5%, but as most investors are financial players, the company may get anchor customer status with higher volume offtake compared to the actual stake. The signing of this deal was part of the recent India Oman Comprehensive Economic Partnership Agreement.

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