Solar company Waaree eyes Rs 1,350 Cr IPO, files draft papers

The money raised from the IPO will be utilised in financing the cost of setting up a two gigawatt (GW) per annum solar cell manufacturing facility and a one gigawatt per annum solar PV module manufacturing facility in Chikhli, Gujarat.
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Solar company Waaree Energies Limited has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds for its Initial Public Offering (IPO).

The issue will include equity shares of Rs 1,350 crore as well as Offer for Sale (OFS) of 4,007,500 equity shares by existing shareholders and promoters, which includes 1,315,000 equity shares each by Hitesh Chimanlal Doshi, Virenkumar Chimanlal Doshi, and Mahavir Thermoequip Pvt. Ltd.

The money raised from the IPO will be utilised in financing the cost of setting up a two gigawatt (GW) per annum solar cell manufacturing facility and a one gigawatt per annum solar PV module manufacturing facility in Chikhli, Gujarat. The rest will be used for corporate purposes, according to a statement issued by the company.

Banks including Axis Capital Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, ICICI Securities Ltd, and Intensive Fiscal Services Pvt Ltd, have been appointed for Waree's IPO.

Inside Waaree's plant at Tumb

Waaree's journey started in Mumbai in 1989 with a borrowed capital of Rs 5,000. Hitesh began trading temperature and pressure gauges. Later, the company pivoted to solar and launched Waaree Energies — a leading PV module and panel manufacturing firm with 2GW capacity.

In an interview with SMBStory, Hitesh said, "According to the Ministry of New and Renewable Energy (MNRE), we have the highest installed capacity of solar module manufacturers in India, followed by the likes of Adani, Vikram, etc. Last year, in a pandemic-hit market, we recorded Rs 2,000 crore turnover. Now, we are increasing our capacity to 5GW by December 2021, and hoping to triple our revenue."

As of FY2021, Waaree's revenue from operations stood at Rs 1,952.78 crore, and the net profit was reported to be Rs 48.19 crore.

As part of the government's initiative to promote green and efficient projects, it had announced an ambitious goal of achieving 227 GW by 2022, of which about 114 GW is planned for solar, 67 GW for wind, and others for hydro and bio among others by 2022.

Edited by Kanishk Singh

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