Solar company Waaree Energy files for IPO, plans Rs 1,350 cr fresh issue

IPO also has OFS component; proceeds from fresh issuance will be used for setting up 2 Gw solar cell unit and 1 Gw solar PV module plant

Mumbai-based solar equipment maker Waaree Energy has filed its draft red herring prospectus (DRHP) with market regulator Sebi to raise funds via IPO. The company plans fresh issue of equity shares worth Rs 1,350 crore as well as an offer for sale (OFS) component.

The company in a statement said, the issue is comprised of a fresh Issue of equity shares of face value of Rs 10 each aggregating to Rs 1,350 crore and OFS of 4,007,500 equity shares by existing shareholders and promoters.

The proceeds from its fresh issuance worth Rs 978.36 crore and Rs 184.23 crore will be used to finance the cost of setting up a 2 gigawatt (Gw) per annum solar cell manufacturing unit and a 1 Gw solar PV module manufacturing facility in Degam village, Chikhli, Gujarat. The remaining proceeds will be used for general corporate purposes, the company said in its DRHP.

Waaree has installed solar photovoltaic module manufacturing capacity of 2 GW. It has three manufacturing facilities comprising four factories in India at Surat, Tumb and Nandigram.

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, the company said in a statement.

According to the DRHP, 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. The company's net profit was at Rs 48.19 crore, up from Rs 39.02 crore a year ago.