Solar Module Manufacturer Waaree Energies Files Draft Red Herring Prospectus for IPO

Indian solar module manufacturer Waaree Energies has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds via an initial public offering (IPO).

The IPO includes a fresh issue of equity shares worth ₹13.5 billion (~$182 million) and an Offer for Sale component.

The issue comprises equity shares of the face value of ₹10 (~$0.13) each, aggregating to ₹13.5 billion (~$182.02 million) and an offer for sale of 4,007,500 equity shares by existing shareholders and promoters.

The proceeds from its fresh issuance worth ₹9.78 billion (~$132 million) and ₹1.84 billion (~$25 million) will be utilized to finance the cost of setting up a 2 GW per annum solar cell manufacturing facility and a 1 GW per annum solar PV module manufacturing facility in Chikhli, Gujarat. The remaining proceeds will be used for general corporate purposes.


Book running lead managers for the issue are Axis Capital, HSBC Securities and Capital Markets (India), ICICI Securities, and Intensive Fiscal Services.

Waaree Energies has 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.

As of March 31, 2021, Waree’s revenue from operations stood at ₹19.52 billion (~$263 million) against ₹19.95 billion (~$269 million) in 2020. Net profit was at ₹481.9 million (~$6.50 million), up from ₹390.2 million (~$5.3 million) in 2020.

Waaree stated that it is also setting up another manufacturing facility at Chikhli in Gujarat. The proposed 3 GW PV module manufacturing capacity is expected to be operational by the end of the financial year (FY) 2022. The 4 GW solar cell capacity is likely to be operational by the end of FY 2023.

In March 2020, Sterling and Wilson Solar approved the merger of Sterling & Wilson Waaree with Sterling & Wilson Solar. Sterling and Wilson Waaree, a wholly-owned subsidiary of Sterling & Wilson Solar, was set up as a special purpose vehicle to execute a 9 MW project in Niger.