Waaree Energies Files DRHP for Rs.1,350 Crore Fresh Issue

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Waaree Energies, which specializes in solar PV (photovoltaic) module manufacturing, is planning to come out with a fresh issue of Rs.1,350 crore. In addition, the company will also undertake an offer for sale (OFS) of 40.08 lakh shares by the existing holders. Hence the actual size of the issue will be much bigger, if the OFS component is also added.

The proceeds of the fresh issue component will be predominantly used for financing the cost of setting up a 2 GW per annum of solar cells manufacturing capacity. In addition, the company will also invest in 1 GW per annum of solar PV modules manufacturing. Both, the solar cell manufacturing facility and the solar PV manufacturing facility will be located in Degam Village in Gujarat.

Currently, Waaree Energies is predominantly into solar PV manufacturing with an installed capacity of 2 GW capacity. If the new expansion plan is factored in, then Waaree Energies will have an enhanced capacity of 3 GW of PV modules. Currently, Waaree Energies has 3 manufacturing plants located at Surat, Tumb and Nandigram.

The above will be part of a continuous capacity expansion program for Waaree Energies. It is now estimated that 3 GW solar PV manufacturing facility will be fully operational by the end of financial year 2022 and the 4 GW solar cells manufacturing capacity will be fully operational and on stream by the end of fiscal year 2023.

The company is an existing profit making company. For the Financial year ended March 2021, Waaree Energies reported net revenues of Rs.1,953 crore and net profits of Rs.48.19 crore. This compares favourably with the profits of Rs.39 crore in the previous year but the top line was slightly lower on a YoY basis. However, this was more an outcome of the pandemic and the resultant lockdowns with things expected to normalize.

The issue will be lead managed by Axis Securities, HSBC Securities and ICICI Securities. The dates will be finalized after SEBI approves the DRHP.

Also Read:-

1) List of Upcoming IPOs in October 2021

2) List of Upcoming IPOs in 2021

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