MUMBAI: Waaree Energies, one of the largest solar PV module manufacturers, entering the solar cell manufacturing as well, has fixed the price-bank for its Rs 4,321-crore initial share sale at Rs 1,427 to 1,503. The issue opens on October 21.
Founded in 1990 in Mumbai, Waaree is also amongst the largest solar module maker with an aggregate installed capacity of 12 GW as of June 2024 at its plants in Chikhli, Surat, Tumb, and Nandigram in Gujarat. It's also setting up a Rs 2,500 crore solar cell plant in Gujarat.
Waaree Renewable Technologies is publicly traded and was founded a year before the parent in 1989.
The issue will consist of a combination of fresh equity shares worth Rs 3,600 crore and an offer for sale of up to 48 lakh shares by the selling shareholders adding up to Rs 721.44 crore.
However, the main external shareholder Valuequest, which owns a little over 10 per cent in the company after investing Rs 1000 crore in multiple rounds, is not participating in the offer for sale, while the Doshi family, which the promoter group will dilute 10 per cent of their holdings through the OFS paring their stake to 62 per cent post-issue, chief financial officer Sonal Srivatsava told the TNIE here Wednesday.
Other selling shareholders are Waaree Sustainable Finance and Chandurkar Investments.
The company’s FY23 revenue stood at Rs 6,800 crore from which it had earned Rs 5000 crore in net income. These rose to Rs 11,600 crore and Rs 1,270 crore respectively in FY24. In the June 2024 quarter, its revenue stood at Rs 3,000 crore from which it had earned Rs 400 crore in net profit.
The company is setting up a Rs 9,000 crore PV module plant in Odisha, and the majority of the IPO proceeds (Rs 2,700 crore) will go into funding this plant over the next two years.
The company has already secured funding for this project from an SBI-led consortium of lenders who have agreed to lend Rs 5,000 crore, Srivastava told TNIE. That apart the company is also setting up a solar cell-making unit in Gujarat with an investment of Rs 2,500 crore.
The cash-rich company has a cash balance of Rs 3,600 crore while its long-term is only Rs 360 crore, she added.