Waaree Energies IPO

 

Waaree Energies Limited is among India’s leading companies in the solar energy sector, focusing on PV module production With a total installed capacity of 2 GW as of March 31, 2021 according to the CRISIL report. Waaree Energies IPO will hit the market in February 2022.

About Waaree Energies

Their mission is to deliver high-quality, cost-effective sustainable energy solutions to a wide range of markets, assisting in the reduction of carbon emissions and the advancement of sustainable energy, therefore enhancing quality of life.

They ‘ve built a reputation for producing high-quality, technologically sophisticated PV modules over the years, utilising trained and talented workforce, innovative work procedures, and an in-house project management team.

With an emphasis on integrating Mono PERC and big sized silicon wafers technology, they aim to pursue a growth strategy that includes regular capacity increases as well as continual upgradation of their production technology and techniques driven by demand.

Products

According to the Approved List of Models and Manufacturers (ALMM) for solar PV module production in India, they had a market share of 24 percent based on aggregate total output as of the date of DRHP.

Presently, they use both multicrystalline and monocrystalline cell technologies to make their PV modules.

Multicrystalline and monocrystalline modules, including Merlin flexible modules and monocrystalline passivated emitter and rear cell (Mono PERC) modules, including bifacial modules (Mono PERC) (framed and unframed), and building integrated photovoltaic (BIPV) modules, are among our solar energy products (Mono PERC).

Manufacturing Facilities

They now have three manufacturing sites in India, each with four factories: Surat (“Surat Facility”), Tumb (“Tumb Facility”), and Nandigram (“Nandigram Facility”) in Gujarat, India.

They are also in the midst of establishing a new manufacturing site in Chikhli, Gujarat, India, where they will be implementing their PV module capacity growth plans and establishing capabilities for backward integration into solar cell production.

The 3 GW PV module manufacturing capacity, which will be added to their existing 2 GW capacity, is scheduled to be operational by the end of 2022, and the 4 GW solar cell production capabilities by the end of 2023.

Waaree Energies IPO

Waaree Energies Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 1,350 crores and 4,007,500 equity share on 28 September 2021.

The offer includes 1,350 crores value fresh equity shares and there is an offer for sale (OFS) of 4,007,500 equity share by the promoters mentioned in the DRHP. They are also looking to for pre-ipo placement of INR 270 crores.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		1,280.52	938.26	818.63
Total Revenue		1,993.37	2,021.31	1,612.73
Profit After Tax		48.19	39.02	82.34

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	2.50	2.50	3
Financial Year 2020	2.12	2.12	2
Financial Year 2019	4.18	4.18	1
Weighted Average	2.65	2.65

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are some of the qualitative characteristics and significant strengths that contribute into determining the Offer Price:

• India’s leading solar PV module maker is well positioned to benefit from strong industry tailwinds and solar energy development prospects.
• In India and throughout the world, a prestigious consumer base.
• Their pan-India franchisee network has a stronghold in the rooftop category.
• Financial performance that has been consistent throughout time, resulting in a healthy balance sheet position.
• Manufacturing of the highest quality, with strict quality control and international accreditations.
• Senior management team with extensive experience and a motivated workforce

Waaree Energies IPO Peer Comparison

There are no publicly traded businesses in India that operate in a similar industry to theirs. As a result, providing an industry comparison in respect to their firm is not feasible.

Waaree Energies IPO Details

IPO Opening Date	February 2022
IPO Closing Date	February 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Order Quantity	–
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	1,350 crore
Offer for Sale	4,007,500 Equity shares

Waaree Energies IPO Date

Waaree Energies IPO opening date is February 2022, and the closing date is February 2022. The Waaree Energies IPO issue may list in February 2022.

IPO Opening Date	February 2022
IPO Closing Date	February 2022
Basis of Allotment Date	February 2022
Initiation of Refunds	February 2022
Credit of Shares to Demat Account	February 2022
IPO Listing Date	February 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum level of 1 lot, based on availability, for every shareholder.

Waaree Energies IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Waaree Energies IPO.

Waaree Energies IPO GMP

Waaree Energies IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
February 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Waaree Energies IPO Review

Waaree Energies IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Waaree Energies IPO is good or bad.

Waaree Energies IPO Risk

• The demand for solar power products, as well as favourable government regulations, will determine their future commercial prospects and financial success.
• The COVID-19 pandemic’s influence on their company and operations is still unknown.
• For the production of their products, they rely on third-party suppliers of materials and components.
• Their financing agreements compel them to adhere to certain restrictive covenants.
• Their company is reliant on the regulatory and policy climate in India that affects the renewable energy sector.
• They want to begin producing solar cells, and if they are unable to effectively implement this plan, their operating performance may suffer.

Other Threats

• They have the same “Waaree” brand name as their other Waaree group businesses, which may cause confusion among the general public.
• Their Company, Subsidiaries, and Directors are now involved in major legal procedures.
• Their activities are exposed to the dangers and uncertainties of numerous foreign markets due to their export sales.
• Their reputation might be harmed if they lose certification for their manufacturing facilities and operations.
• For the provision of materials for our manufacturing process, we rely on third-party transportation suppliers.
• They bid on projects that expose ourselves to the risks that come with such initiatives.
• Exchange rate changes may have a negative impact on our business.

Sales

Direct Sales to Utilities and Enterprises are two of their sales and income channels. Module sales via their broad franchisee network focusing on rooftop and MSME client sectors, as well as franchisee EPC revenue are included in franchisee sales.

Module sales to foreign clients, as well as overseas EPC income, are included in export sales. Their items were sold throughout India in Fiscal 2021, and they exported to 19 countries.

EPC services for domestic utilities and enterprise clients, O&M services, trade in auxiliary goods, export incentives, generation of energy from renewable resources, and scrap sale are all examples of other revenue from operations.

Certification

They think that their high-quality goods and ISO-certified manufacturing facilities enable them to target a select clientele. Some of their production facilities are accredited to ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018.

Furthermore, their modules are covered by other parties, necessitating the upkeep of strict insurance approval requirements. In Fiscal 2018, 2019, 2020, and 2021, they continuously obtained a tier-1 PV module manufacturer rating from Bloomberg New Energy Finance.

Their laboratory was recognised by the National Accreditation Board for Testing and Calibration Laboratories (NABL), making them the first and only Indian PV module manufacturer to do so .

Franchisee

Their rooftop and MSME client categories are served through a pan-India franchisee network. Their franchisee network included 260, 315, and 355 franchisees in 2019, 2020, and 2021, respectively, while they had 388 franchisees across India as of June 30, 2021.

During the length of the franchisee agreement, their franchisees can only sell items that they have approved. Over the years, They’ve made substantial investments in terms of training, resources, and support for their franchisees, and they’ve built great relationships with them.

Through direct consumer engagement and distribution, their vast franchisee network across India enhances the exposure and availability of their products.

Waaree Energies IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Waaree Energies IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
February 2022	1
February 2022	2
February 2022	3

Management

Mr. Hitesh Chimanlal Doshi, their Chairman, Managing Director, and one of their Promoters, has been in charge of our Company’s financial performance, investments, and other business ventures.

He is offering proactive guidance to the Board, creating and implementing our business strategies, and establishing policies and legal guidelines. He has worked in the engineering field for over 21 years.

Mr. Virenkumar Chimanlal Doshi, one of their Promoters and a Full-Time Director, has been in charge of the engineering, procurement, and construction of their Company’s, subsidiaries’, and other group businesses’ solar projects. He has worked in the engineering field for over 14 years.

Promoters

• Hitesh Chimanlal Doshi
• Virenkumar Chimanlal Doshi
• Mahavir Thermoequip Private Limited.

Promoter’s Holding

Pre Issue Share Holding	42.04%
Post Issue Share Holding