Upcoming IPO: Waaree Energies Raises Rs 1,277 Crore Raised From Anchor Investors Ahead Of Subscription

Waaree Energies Limited, one of India's largest solar PV module manufacturers, has garnered attention ahead of its IPO. The company raised Rs 1,276.93 crore from anchor investors just before the official subscription opening, setting the stage for its public issue. The IPO subscription, which will be open for bidding from Monday, October 21, 2024, to Wednesday, October 23, 2024, is expected to generate interest across investor categories.

In a statement uploaded on BSE's website, it was revealed that Waaree Energies allotted 84.96 lakh equity shares to 92 anchor investors at Rs 1,503 per share, which is the upper end of the price band. This allotment brought in a total of Rs 1,277 crore from anchor investors. Among the key participants were prominent names like Goldman Sachs, Abu Dhabi Investment Authority, Morgan Stanley, and The Prudential Assurance Company. Notably, domestic mutual funds also took a large slice of the offering, with 28.32 lakh shares, representing 33.33% of the total allocation, going to 17 domestic mutual funds across 45 different schemes.

The participation of major institutional investors like HDFC Mutual Fund, ICICI Prudential Mutual Fund, Canara Robeco Mutual Fund, and Bandhan Mutual Fund reflects the market confidence in Waaree Energies' growth trajectory.

Waaree Energies IPO Details

The Waaree Energies IPO will consist of a fresh issue of equity shares worth Rs 3,600 crore, coupled with an Offer For Sale (OFS) of 48 lakh equity shares, valued at Rs 721.44 crore at the upper price band. This results in a total issue size of Rs 4,321.44 crore. The price band has been set between Rs 1,427 and Rs 1,503 per equity share, each with a face value of Rs 10.

The public issue allocates 50% of the shares to qualified institutional buyers (QIB), 15% to non-institutional investors (NII), and 35% to retail investors, ensuring broad-based participation from all investor categories. In addition, employees of the company have a reserved portion, with up to 650 million equity shares earmarked for them.

The proceeds from the fresh issue will be primarily used for the development of a 6GW (gigawatt) manufacturing facility for ingot wafers, solar cells, and solar PV modules in Odisha. The remaining funds will be allocated for general corporate purposes.

Listing and Important Dates

After the close of the IPO on October 23, the basis of share allotment will be finalized by Thursday, October 24, 2024. Refunds for non-allotted shares will be initiated on Friday, October 25, 2024, and those receiving allotments will have their shares credited to their demat accounts on the same day. Waaree Energies shares are set to debut on the stock exchanges on Monday, October 28, 2024, with listings on both BSE and NSE.

Lead Managers and Promoters

The IPO is managed by a consortium of leading investment banks, including Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital. The company is promoted by industry stalwarts Hitesh Chimanlal Doshi, Viren Chimanlal Doshi, and Pankaj Chimanlal Doshi, along with Waaree Sustainable Finance Private Limited.

Waaree Energies, founded in December 1990, has grown into a significant player in India's renewable energy sector. The company specializes in manufacturing solar PV modules and has established itself with an installed capacity of 12GW as of June 30, 2023. Its product line includes multicrystalline, monocrystalline, and TopCon modules, offering flexibility through both framed and unframed bifacial modules (Mono PERC). Waaree also offers building-integrated photovoltaic (BIPV) modules, which are gaining popularity as eco-friendly alternatives in construction.

Waaree operates five state-of-the-art manufacturing facilities, with four located in Gujarat (Surat, Tumb, Nandigram, and Chikhli) and one in Noida, Uttar Pradesh (the IndoSolar facility). With its expanded capacity and advanced technology, Waaree Energies is well-positioned to capture the growing demand for solar energy solutions, both domestically and internationally.

The market valuation of Waaree Energies is projected to exceed Rs 4,300 crore post-IPO, based on the upper price band. As solar energy gains increasing importance in the global push towards renewable energy, Waaree Energies' focus on expanding its production capabilities makes it a strong contender in the market.