Waaree Energies: Powering India's renewable energy future

Waaree Energies Limited, a main player in the solar energy sector, has recently filed a Draft Red Herring Prospectus (DRHP) for its initial public offering (IPO) to raise ₹3000 crore. The IPO, which incorporates a fresh issue of equity shares and an offer for sale, marks a giant milestone for the company as it aims to extend its manufacturing abilities and make contributions to India's renewable energy landscape. 

Waaree Energies: A Leader in Solar Energy

Waaree Energies is India's biggest solar panel producer, with an operational capability of 12 GW for solar PV modules like Mono PERC, bifacial, BIPV, flexible, and polycrystalline modules as of June 30, 2023. The company commands a marketplace share of 12% in solar PV modules and is also the biggest exporter of solar PV modules in India, keeping approximately 50% of the marketplace share in exports.

Waaree Energies Limited’s Share Price

Waaree Energies share price is currently ₹1120, consistent with an equity share. This price is primarily based on the company's overall economic performance and marketplace situations. The share price is subject to fluctuations primarily based on numerous market and economic factors. Investors can access the share price through numerous financial platforms and marketplaces.

Waaree's Expansion Plans

Waaree Energies Limited is planning aggressive growth over the next 3 to 5 years. The strategy is to make investments of ₹ 2500 crore from the IPO proceeds right into a ₹9000 crore mega project. The company is putting in place a production facility in Odisha for dollar cells and modules with a 6 GW ability, marking a 50% boom over their current 12 GW. Following this enlargement, Waaree Energies is set to remain India’s biggest solar PV module manufacturer, ahead of giants like Adani and Tata.

Read Also: Analyzing Waaree Energies' Share Price Performance and Market Insights

Government Support for Renewable Energy

India has launched a Production Linked Incentive Scheme to boost solar PV module manufacturing. The first tranche, approved in April 2021 with ₹4,500 Cr, led to 8,737 MW of solar capacity awards. The second tranche, approved in September 2022 with ₹19,500 Cr, aims to establish an additional 39,600 MW of solar manufacturing. Additionally, the Green Hydrogen Mission is kicking off with ₹ 19,744 Cr to create clean hydrogen energy and new technology.

Waaree's Financial Performance

Waaree Energies has proven terrific economic overall performance, with a CAGR of 85.99% in total income and 200% in profit after tax over the past years. The company is controlled to scale commonly via internal accruals and equity, avoiding excessive leverage on its balance sheet. It underwent its first essential equity dilution in June 2023, elevating 1000 crore from private placements at ₹ 550/- per share at a pre-money business valuation of 4500 crore.

Waaree's Edge: A Global Comparison

Waaree Energies distinguishes itself with the best EBITDA margins, around 14%, which can be anticipated to stay consistent. Another critical factor to take into account is the debt state of affairs. Waaree maintains a net debt-free position, in comparison to many of its closely indebted global peers. The company’s sturdy return ratios of ROE at 26% and ROCE at 31% similarly enhance its financial stability.

Conclusion

Waaree Energies' IPO is being controlled via reputed economic institutions, along with Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Services, SBI Capital Markets, Intensive, and ITI Capital. As the company embarks on this IPO journey, its objectives are to gasoline its expansion plans and contribute to the wider task of promoting sustainable energy solutions. With its sturdy financial overall performance, strategic acquisitions, and innovative virtual tasks, Waaree Energies is properly positioned to steer the rate of India's renewable energy revolution.