Waaree Energies Limited, one of the major players in the solar energy industry in India has filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) to raise funds via IPO. The issue includes a fresh issue of equity shares worth Rs 1350 cr as well as an OFS component.
The Issue comprises a Fresh Issue of equity shares of Face Value of Rs 10 each aggregating to Rs 1,350 Crore and Offer for Sale (OFS) of 4,007,500 equity shares by existing shareholders and promoters. The OFS consists of sale of 1,315,000 equity shares each by Hitesh Chimanlal Doshi, Virenkumar Chimanlal Doshi & Mahavir Thermoequip Pvt Ltd and up to 40,000 by Samir Surendra Shah and up to 22,500 equity shares by Nilesh Gandhi Jointly with Drasta Gandhi.
The proceeds from its fresh issuance worth Rs. 978.36 crore and Rs. 184.23 crore will be utilized to finance the cost of setting up a 2 gigawatt (GW) per annum solar cell manufacturing facility and a 1 GW per annum solar PV module manufacturing facility in Degam village, Chikhli, Gujarat. The remaining proceeds will be used for general corporate purposes.
Waaree Energies is one of the major players in the solar energy industry in India focused on PV module manufacturing, with an aggregate installed capacity of 2 GW as of March 31, 2021. The company currently operates three manufacturing facilities comprising four factories in India at Surat Tumb and Nandigram. The company has an excellent track record of manufacturing quality and technologically advanced PV modules, involving trained and skilled manpower and work practices focused on innovation. The company provides EPC services, project development, rooftop solutions and solar water pumps, presence in over 350 locations nationally and 68 countries internationally.
As on 31st March 2021, Waree's revenue from operations stood at Rs 1,952.78 crore against Rs 1,995.78 crore a year ago. Net profit was at Rs 48.19 crore, up from Rs 39.02 crore a year ago.
Waree is also in the process of setting up another manufacturing facility at Chikhli in Gujarat. The proposed addition of 3 GW PV module manufacturing capacity is expected to be operational by the end of fiscal 2022, and the 4 GW solar cell manufacturing capacity is expected to be operational by the end of fiscal 2023.
In Fiscal 2021, Waree products were sold across India and made export sales to 19 international jurisdictions. As of June 30, 2021, the company had 388 franchisees in 25 states and two Union Territories across India.
Lead managers appointed to the Issue are Axis Capital Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, ICICI Securities Ltd and Intensive Fiscal Services Pvt Ltd.