Waaree Energies Secures ₹1,277 Crore from Anchor Investors Ahead of Highly Anticipated IPO

Waaree Energies has raised ₹1,277 crore from 92 anchor investors ahead of its IPO, which opens on Monday. The company has allocated 84.95 lakh shares at ₹1,503 each, the upper limit of the price range.

Out of the total amount raised, 33.33% was given to 17 domestic mutual funds across 45 different schemes. Some of the well-known funds that participated include HDFC Mutual Fund, ICICI Prudential Mutual Fund, ADIA, Goldman Sachs, and Mirae Asset, among others.

The IPO will be open for subscription from October 21 to October 23. Currently, the grey market premium (GMP) is around ₹1,350, suggesting a nearly 90% premium over the issue price. Analysts believe that the company’s shares may perform exceptionally well at listing if demand continues.

Waaree Energies plans to use the funds from the IPO to set up a 6 gigawatt (GW) manufacturing facility for solar products in Odisha and for general corporate needs. As of June 2024, Waaree Energies is the largest manufacturer of solar PV modules in India, with a total installed capacity of 12 GW. In fiscal year 2024, it had the second-highest operating income among domestic solar PV module makers.

The company aims to provide high-quality and sustainable energy solutions worldwide, helping reduce carbon footprints. It is also expanding into the U.S. by building a 3 GW manufacturing facility there.

The Indian commercial and industrial solar sector added about 10 GW of capacity between fiscal years 2019 and 2023, bringing the total to around 25 GW by December 2023. This sector is responsible for 70-80% of the country’s rooftop solar installations and is also growing in the utility-scale solar market.

In FY24, Waaree Energies saw a 69% year-on-year increase in revenue, reaching ₹11,398 crore, while its profit after tax more than doubled to ₹1,274 crore.

The lead managers for the IPO include Axis Capital, IIFL Securities, Jefferies India, and SBI Capital Markets.