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Waaree Energies, a prominent player in India's solar energy sector, is set to launch its Initial Public Offering (IPO) on October 21, 2024. The company has announced a price band of Rs 1,427 to Rs 1,503 per share for the offering, with the aim of raising a substantial Rs 4,321 crore. The IPO will remain open for public subscription until October 23, with a dedicated day on October 18 for anchor investor bidding.
The IPO structure includes a fresh equity share issue totaling Rs 3,600 crore and an Offer For Sale (OFS) of 48 lakh equity shares valued at Rs 721.44 crore, based on the upper end of the price band. These OFS shares are being offloaded by promoter Waaree Sustainable Finance Pvt Ltd and shareholder Chandurkar Investments Private Ltd. Additionally, Rs 65 crore worth of shares have been reserved for Waaree Energies' employees.
The proceeds generated from the fresh issue will be allocated towards establishing a 6 GW Ingot Wafer, Solar Cell, and Solar PV module manufacturing facility in Odisha. A portion of the funds will also be dedicated to general corporate purposes. Post-issue, at the upper end of the price band, the company's market valuation is estimated to surpass Rs 4,300 crore.
The IPO allocation is divided as follows: 50% reserved for qualified institutional investors, 35% for retail investors, and 15% for non-institutional investors. Waaree Energies has established itself as a leading player in the Indian solar energy market, boasting an aggregate installed capacity of 12 GW as of June 30, 2023. The company operates five manufacturing facilities strategically located across India: Surat, Tumb, Nandigram, and Chikhli in Gujarat, and the IndoSolar Facility in Noida, Uttar Pradesh.
The IPO is being managed by a consortium of book-running lead managers including Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India) Private Ltd, SBI Capital Markets, Intensive Fiscal Services, and ITI Capital.