Waaree Energies IPO – Review Detailed Analysis | Invest or Not?

Waaree Energies IPO Review: A Detailed Analysis

Waaree Energies Limited, India’s largest solar module manufacturer, has entered the Indian stock market with its ₹4,321.44 crore IPO. This article provides a comprehensive review of Waaree Energies’ IPO, covering:

• Oerview and business model
• Financial performance and growth prospects
• Risks and challenges, Future outlook
• Industry Outlook
• Waaree Energies IPO Day-wise GMP

Read the full review now and discover if Waaree Energies’ IPO is the right investment for you

About – Waaree Energies

Overview

Waaree Energies Limited, founded in 1990, is India’s largest solar module manufacturer with a capacity of 12 GW. Headquartered in Mumbai, India, the company has five solar module manufacturing facilities in India and an international presence.

Waaree Energies commenced operations in 2007, focusing on solar PV module manufacturing. The company aims to provide quality, cost-effective sustainable energy solutions across markets, reducing carbon footprints and improving quality of life. Waaree Energies offers a range of solar solutions, including modules, inverters, batteries, and solar rooftops.

Waaree Energies has manufacturing facilities in Chikhli, Surat, Tumb and Nandigram in Gujarat, with a presence in over 380 locations across India and exports to over 20 countries worldwide. The company is establishing a 3 GW manufacturing facility in the United States.

Waaree Energies expects rooftop solar revenue to surge by 30% or more over the next five years. To drive this growth the company is investing in a fully integrated facility for ingots, wafers, solar cells and solar PV modules, while also expanding its manufacturing capacity with a new 3 GW facility in the United States.

Waaree Energies is India’s largest manufacturer and exporter of solar modules, holding 21% market share. Its installed capacity surged from 2GW in FY21 to 13.3GW by FY24. Market capitalization stands at ₹94,916 crore.

Waaree Energies faces challenges from Chinese imports, intense competition and reliance on government policies and incentives.

Industry Outlook

India’s solar industry is powering ahead! With a projected growth rate of 9.5% annually from 2024 to 2031, the future looks promising. But what’s driving this growth?

The Indian government is leading the charge with supportive policies and export incentives. Global demand for solar energy is soaring, especially in developing countries. New technologies like HJT and TOPCon are also on the horizon.

India is becoming self-sufficient, reducing its import dependency from 51% to just 6% by 2028. And with a manufacturing capacity of 125 GW by 2029, India will have a surplus of solar modules to export.

• Government support through policies and export incentives
• Soaring global demand, especially in developing countries
• Reduced import dependency (51% to 6% by 2028) in india
• Surplus solar modules for export expected to reach approximately 125 GW capacity by 2029 in india

Strength*

• Market leadership: Waaree Energies dominates India’s solar module manufacturing industry.
• Growth Potential: Renewable energy demand is rising, driven by government initiatives and environmental concerns
• Financial Performance: Impressive revenue growth (99.83% CAGR from 2022 to 2024) and profitability.
• Global Expansion: Establishing a 3 GW manufacturing facility in the US, expanding global presence.
• Long-term Prospects: Increasing focus on solar energy, favorable government policies, and growing demand.

Weakness*

• Dependence on Chinese imports: Waaree Energies imports a significant portion of its materials, especially solar cells, from China, making it vulnerable to geopolitical tensions or trade restrictions.
• Exposure to international market uncertainties: Waaree Energies relies heavily on export sales, particularly to the United States, exposing the company to international market uncertainties.
• Supply chain disruptions: Challenges in maintaining relationships with franchisees, supply chain disruptions, and problems with third-party suppliers could hinder expansion.
• Chinese oversupply of solar components: The oversupply of solar components from China has forced Waaree Energies to lower prices, impacting revenue
• Competition: Intense competition from Chinese imports and other Indian module manufacturers.
• Dependence on Government Policies: Vulnerable to changes in government incentives and regulations.

Waaree Energies IPO Details

Waaree Energies IPO Details:

Waaree Energies IPO open from October 21, 2024 to October 23, 2024, with a price band of ₹1427 to ₹1503 per share. The total issue size was ₹4,321.44 crore, comprising a fresh issue of ₹3,600 crore and an offer for sale of ₹721.44 crore. The company listed on the BSE and NSE on October 28, 2024, with a listing price of ₹2,722.10, which increased to ₹3,346.00 as of November 7, 2024 . This means investors who bought shares during the IPO got a around 22.9% return.

Waaree Energies IPO Reservation

Waaree Energies IPO Anchor investors Details

Waaree Energies IPO Lot Size

Waaree Energies IPO Timeline

Waaree Energies Financials

Waaree Energies IPO Promoter Holding

Waaree Energies IPO Listing Details

Waaree Energies Listing Day trading information

Waaree Energies KPI (Key Performance indicators)

Waaree Energies IPO Subscription Status (Bidding Details)

Waaree Energies IPO Day-wise Grey Market Premium (GMP)

The Grey Market Premium (GMP) of Waaree Energies’ IPO fluctuated significantly in the days leading up to its listing. Starting from ₹0 on October 14, 2024 the GMP rose to ₹1280 on October 15, 2024 and continued to increase reaching ₹1590 on October 24, 2024, the allotment date. On the listing date October 28, 2024, the GMP stood at ₹1295

Waaree Energies Stock Buy or Not?

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Conclusion

Waaree Energies IPO offers an attractive opportunity to invest in growing solar module manufacturing industry. With a strong market position, impressive financial performance, and favorable industry trends, the company is well-positioned for growth.

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