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Salient features of the IPO:

• Waaree Energies Ltd. (WEL), i. (WEL), is a manufacturer of solar PV modules in India with the largest aggregate installed capacity of 12 GW, is coming up with an IPO to raise around Rs. 4,284.9 - 4,321.4cr, which opens on 21th Oct. and closes on 23th Oct. 2024. The price band is Rs. . 1,427 - 1,503 per share.

• The IPO is a combination of fresh issue (Rs. 3,418 - 3,600cr) and OFS portion of (Rs. 685.0 - 721.4cr). From the fresh issue net proceeds, the company will be utilizing Rs. 2,775cr to Partly finance the cost of establishing the 6GW of Ingot Wafer, Solar Cell and Solar PV Module manufacturing facility in Odisha, India by way of an investment in their wholly owned subsidiary, Sangam Solar One Pvt. Ltd. (“Project”). Residual proceeds will be used for general corporate purposes.

• Few of the promoter & promoter group (P&PG) entities are participating in the OFS and offloading 0.435cr shares. Consequently, post-IPO, the P&PG and public shareholders will have 64.3% and 35.7% stake in the company, respectively.

Key competitive strengths:

• Largest Solar PV module manufacturer in India

• Advanced manufacturing facilities with global accreditations

• Consistent track record of financial performance

• Diversified base of global and Indian customers with a large order book

• Extensive pan-India retail network

• Experienced senior management team

Risk and concerns:

• General slowdown in the global economic activities.

• Customer concentration risk

• Natural and catastrophic events may lower energy production

• Their 4 out of 5 operations is in Gujarat, exposing them to regional risks.

• A significant portion of the company's raw materials is imported from China, making it vulnerable to trade restrictions

• The proposed project relies on government subsidies

• Competition

Below are the key highlights of the company:

• In FY23, India saw a significant rise in solar module exports, driven by global restrictions on Chinese goods, allowing Indian manufacturers to meet market demand. With strong government support, India added 13 GW of solar capacity in 2023, over 15 GW in 2024, and 7.4 GW in the first five months of Fiscal 2025, bolstering its position in the renewable energy sector.

• Between FY24 and FY29, India's per capita electricity consumption is projected to grow at 5-7% CAGR, driven by robust GDP growth. As the fastest-growing economy, India's power demand will surge, with solar PV investments rising as a cost-effective generation option. To meet Net Zero targets by 2050, annual capacity deployment must triple by 2030, with generation expected to increase by 25% from 2022 to 2030.

• WEL stands as India's largest manufacturer of solar photovoltaic (PV) modules, boasting an impressive installed capacity of 12 GW as of June 30, 2024. Founded in 2007, the company is committed to delivering sustainable energy solutions that are both cost-effective and environmentally friendly.

• The company provides an extensive range of solar PV modules, utilizing both multicrystalline and monocrystalline technologies. The product line includes high-efficiency solutions such as Mono PERC and bifacial modules, catering to a variety of customer needs, The company is at the forefront of technological advancements, incorporating emerging technologies like Tunnel Oxide Passivated Contact (TopCon), which minimizes energy loss and enhances efficiency, positioning WEL’s products as leading solutions in the market.

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