25 September 2024
Waaree Energies Ltd, the parent entity of the listed company Waaree Renewable Technologies, is set to launch its IPO in mid-October, according to sources familiar with the matter. The solar PV modules manufacturer received the final regulatory approval for its proposed public issue on September 20. The company plans to raise Rs 3,000 crore through a fresh issue of shares with a face value of Rs 10 per equity share, and an offer for sale (OFS) of up to 32 lakh equity shares, as outlined in its draft red herring prospectus (DRHP) filed with SEBI in January. Key Highlights of the IPO: Utilisation of Proceeds The company intends to use the IPO proceeds to finance the establishment of a 6 gigawatt (GW) Ingot Wafer, Solar Cell, and Solar PV Module manufacturing facility in Odisha, as well as for general corporate purposes, according to the filing. Waaree's aggregate installed capacity stood at 12 GW as of June 30, 2023.The OFS comprises up to 27 lakh shares from Waaree Sustainable Finance Private Limited (formerly Mahavir Thermoequip Private Limited), a promoter entity, and up to 4.5 lakh shares from Chandurkar Investments Private Limited. Additionally, Samir Surendra Shah, categorised as another selling shareholder, will offer 50,000 shares. Financial Performance For the fiscal year ended March 31, 2023, Waaree Energies reported revenue from operations at Rs 6,750 crore, a significant increase from Rs 2,854 crore in FY22. The company's profit after tax surged nearly five-fold to Rs 500.2 crore, up from Rs 79.6 crore in FY22. As of March 31, 2023, the company is net cash-flow positive with Rs 642 crore in reserves. Customer Concentration In FY23, the top 10 customers contributed 65.90% of the company’s revenue, up from 42.78% in FY22. In Q1 FY24, this concentration further increased, with the top 10 customers contributing 76.11% of the revenue. The largest customer alone accounted for around 20% of the revenue. Export Sales Waaree Energies is heavily reliant on the United States for its revenue. In Q1FY24, export sales accounted for 73% of total revenue from operations, with sales to the US contributing nearly 65%. “Our export sales expose us to risks and uncertainties associated with international markets, particularly the United States,” stated the company in its DRHP. Key Risks The company’s ability to grow its retail sales, particularly in the commercial, industrial, and residential business verticals, depends on maintaining and expanding relationships with franchisees. Failure to do so could negatively impact business, cash flows, and operations. Retail sales contributed 9.96% to total revenue in FY23. A significant portion of the company's retail sales comes from Gujarat. Any adverse change in demand from this region could have a negative impact on its business, financial condition, and cash flows. Waaree is in the process of establishing a 3 GW manufacturing facility in the United States. Any failure to properly execute this expansion could negatively affect the company’s business and financial performance. About the Company Waaree Energies, the parent entity of the listed company Waaree Renewables, commenced operations in 2007, focusing on solar PV module manufacturing. The company aims to provide high-quality, cost-effective, sustainable energy solutions across global markets, contributing to the reduction of carbon footprints.
Waaree Energies Ltd, the parent entity of the listed company Waaree Renewable Technologies, is set to launch its IPO in mid-October, according to sources familiar with the matter. The solar PV modules manufacturer received the final regulatory approval for its proposed public issue on September 20. The company plans to raise Rs 3,000 crore through a fresh issue of shares with a face value of Rs 10 per equity share, and an offer for sale (OFS) of up to 32 lakh equity shares, as outlined in its draft red herring prospectus (DRHP) filed with SEBI in January. Key Highlights of the IPO: Utilisation of Proceeds The company intends to use the IPO proceeds to finance the establishment of a 6 gigawatt (GW) Ingot Wafer, Solar Cell, and Solar PV Module manufacturing facility in Odisha, as well as for general corporate purposes, according to the filing. Waaree's aggregate installed capacity stood at 12 GW as of June 30, 2023.The OFS comprises up to 27 lakh shares from Waaree Sustainable Finance Private Limited (formerly Mahavir Thermoequip Private Limited), a promoter entity, and up to 4.5 lakh shares from Chandurkar Investments Private Limited. Additionally, Samir Surendra Shah, categorised as another selling shareholder, will offer 50,000 shares. Financial Performance For the fiscal year ended March 31, 2023, Waaree Energies reported revenue from operations at Rs 6,750 crore, a significant increase from Rs 2,854 crore in FY22. The company's profit after tax surged nearly five-fold to Rs 500.2 crore, up from Rs 79.6 crore in FY22. As of March 31, 2023, the company is net cash-flow positive with Rs 642 crore in reserves. Customer Concentration In FY23, the top 10 customers contributed 65.90% of the company’s revenue, up from 42.78% in FY22. In Q1 FY24, this concentration further increased, with the top 10 customers contributing 76.11% of the revenue. The largest customer alone accounted for around 20% of the revenue. Export Sales Waaree Energies is heavily reliant on the United States for its revenue. In Q1FY24, export sales accounted for 73% of total revenue from operations, with sales to the US contributing nearly 65%. “Our export sales expose us to risks and uncertainties associated with international markets, particularly the United States,” stated the company in its DRHP. Key Risks The company’s ability to grow its retail sales, particularly in the commercial, industrial, and residential business verticals, depends on maintaining and expanding relationships with franchisees. Failure to do so could negatively impact business, cash flows, and operations. Retail sales contributed 9.96% to total revenue in FY23. A significant portion of the company's retail sales comes from Gujarat. Any adverse change in demand from this region could have a negative impact on its business, financial condition, and cash flows. Waaree is in the process of establishing a 3 GW manufacturing facility in the United States. Any failure to properly execute this expansion could negatively affect the company’s business and financial performance. About the Company Waaree Energies, the parent entity of the listed company Waaree Renewables, commenced operations in 2007, focusing on solar PV module manufacturing. The company aims to provide high-quality, cost-effective, sustainable energy solutions across global markets, contributing to the reduction of carbon footprints.
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