Indian solar manufacturer Waaree Energies files IPO plans

Solar panels. Author: Frédéric BISSON. License: Creative Commons, Attribution 2.0 Generic.

September 29 (Renewables Now) - Indian solar product maker Waaree Energies Ltd has taken steps to launch an initial public offering (IPO) to secure funds for the construction of more photovoltaic (PV) cell and module production capacity.

The PV manufacturer has filed a draft red herring prospectus (DRHP) with the country’s capital markets regulator Securities and Exchange Board of India (SEBI). According to the documents, Waaree will issue new shares worth INR 13.5 billion (USD 182.8m/EUR 156.2m) and also launch an offer for sale (OFS) of up to 4.01 million equity shares by existing shareholders and promoters of the company.

Waaree Energies, part of Mumbai-based Warree Group, is India’s largest solar module producer. As of March 2021, the company had 2 GW of manufacturing capacity at its factories in Surat and Umbergaon in the state of Gujarat. It is also involved in solar engineering, procurement and construction (EPC) and operation and maintenance (O&M).

The Indian manufacturer intends to allocate the IPO proceeds to build a complex for producing up to 2 GW of solar cells and 1 GW of PV modules per year in Degam, Gujarat. From the total targeted amount, INR 9.1 billion and INR 1.4 billion will go for the PV cell and module production expansion projects, respectively. An indicative implementation schedule given by the company shows that the solar module plant, to be built at a total cost of INR 1.84 billion, will be put on stream in the last quarter of fiscal 2022, while the INR 9.78-billion cell facility will become operational in the second quarter of fiscal 2023.

Any remaining funds from the proposed transaction will be earmarked for general corporate needs.

Axis Capital, HSBC Securities and ICICI Securities are among the book running lead managers of the deal.

(INR 10 = USD 0.135/EUR 0.116)

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