The IPO of Waaree Energies, one of India’s largest solar PV module manufacturers, will open for subscription on Monday, closing on October 23. Here are 10 important points to know before subscribing:
1) Business Overview: Waaree Energies has an installed solar PV module capacity of 12 GW, with 43.37% utilised capacity for the year ending March 2024.
2) Industry Overview: India’s commercial and industrial solar sector added around 10 GW between FY19 and FY23, with a total installed capacity of 25 GW as of December 2023.
3) GMP (Grey Market Premium): Waaree Energies’ current GMP stands at ₹1,340, indicating a nearly 89% premium over the issue price.
4) IPO Size: The total size of the IPO is ₹4,321 crore, which includes ₹3,600 crore as fresh equity and ₹721 crore through an offer for sale.
5) Price Band: The price band is set at ₹1,427-₹1,503 per share, with investors able to bid in lots of 9 shares.
6) IPO Structure: The IPO reserves 50% of the offer for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors.
7) Financial Performance: Waaree Energies reported revenue of ₹11,398 crore for FY24, a 69% increase year-on-year, with profit after tax more than doubling to ₹1,274 crore.
8) IPO Objectives: Funds raised will be used to set up a 6 GW manufacturing facility for ingots, wafers, solar cells, and PV modules in Odisha, along with supporting corporate purposes.
9) Lead Managers: Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital are managing the IPO.
10) Allotment and Listing Dates: Share allotments are expected on October 24, with the listing likely on October 28.
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