Waaree Energies IPO

Waaree Energies IPO Key Points

Objectives of the IPO:

1. Repayment/prepayment, in full or part, of certain borrowings availed by our Company;

2. Funding of working capital requirements of their company; and

3. General corporate purposes.

Subscription Details:

Qualified Institutional Buyer: 50%

NIB: Non-Institutional Buyer: 15%

Retail: 35%

Potential Benefits for Investors:

• The Indian Government is investing heavily in renewable and green energy. Waaree Energies is a key contributor in the green energy space and thus investors can be a part of a company that can make huge strides in the renewable energy market.
• Waaree Energies has several ISO-accredited facilities and incorporates top technologies like TopCon and Mono PERC into its manufacturing processes. Thus, by investing in Waaree Energies, one can be a part of a group that is at the cutting edge of technology.
• Waaree Energies has a strong base in the domestic and international markets and a strong brand recall across geographies.

Waaree Energies IPO Risk Factors

The business is dependent on certain key customers and the loss of any of these customers or loss of revenue from sales to any key customers could hurt the business.

The export sales make their operations subject to risks and uncertainties of various international markets, in particular the United States. Further, their revenue from operations is significantly dependent on export sales and there is no assurance that they may be able to continue their export sales going forward.

The proposed project is dependent on various government subsidies. In the event such subsidies do not materialize or the state or central government does not approve the entire subsidy amount, they may have to raise additional working capital, which may hurt their business.

Key Strategies of Waaree Energies

Implement strategic backward integration to enhance operations and increase profitability

Maintain leadership position in the utility and enterprise modules sales market with continued capacity expansion in India and abroad

Continue to grow and diversify our export markets

Conclusion

Waaree Energies is the largest PV Module manufacturer in India, has strong domestic and international customers and is in the ‘in the hottest sector currently’. However, a regime change in the United States, regulatory risks and other such aspects pose a challenge for the Solar manufacturer.