Waaree Energies IPO Is Set To Disrupt The Listed Solar Module Industry

Waaree Energies' IPO Poised to Shake Up Solar Module Market.

Expert analysis:

• IPO Details: Waaree Energies’ IPO will be a fresh issue of shares worth Rs. 3000 crore and an offer for sale for 32 lakh shares of face value Rs 10 each.

• Market Impact & Timeline: Potential listing may pressure competitors whose shares surged 2.11 to 21 times in the past year.IPO expected in 2024 after submitting draft red herring prospectus to SEBI in December.

• Promoter offloading: Promoter Waaree Sustainable Finance Pvt. plans to offload 27 lakh shares (21.9% stake).

• Stake Sales by Stakeholders: Chandurkar Investments Pvt. to sell 4.5 lakh shares, its entire 0.17% stake.Samir Surendra Shah, with 0.04% stake, to sell 50,000 shares.

• Installed Capacity: Founded in 1989 with headquarters in Mumbai, Waaree Energies has an aggregate capacity of 12 GW as of June 20, 2023. It signifies robust growth potential. Notably, competitors like Adani Solar and ReNew Power lag significantly with 4 GW each as of June 2023.

• Striking Growth & Financial Performance: Waaree Energies witnessed remarkable growth in the past three years, with revenue and net profit soaring at 86% and 231% CAGR respectively. Additionally, the company expanded its EBITDA margins by 750 basis points from fiscal 2021 to 2023.

• Market Position and Performance: Waaree Energies surpassed Vikram Solar and Websol Energy System in operating income in fiscal 2023, aligning closely with Tata Power Solar. The company achieved a remarkable 136% Y-o-Y revenue growth, with operating margins on par with Adani Solar.

• Solar Module Market Dynamics: Waaree vs. Websol: Waaree Energies has experienced significant financial growth in recent years; Websol Energy System faced a 93% YoY revenue decline in fiscal 2023, leading to a net loss of Rs 23.7 crore compared to a Rs 9.7 crore profit in fiscal 2022.