Waaree Energies Ltd. is an Indian manufacturer of solar PV modules with an aggregate installed capacity of 12 GW. The company operates four manufacturing facilities in India, covering a total area of 136.30 acres. It is the largest manufacturer of solar PV modules in India, with the largest aggregate installed capacity of 12 GW as of June 30, 2024. For FY24, it had the second-best operating income among all domestic solar PV module manufacturers in India. Further, as of June 30, 2024, the company’s pending order book of solar PV modules was 16.66 GW, which included domestic orders, export orders, and franchisee orders, and 3.75 GW of orders for its subsidiary, Waaree Solar Americas Inc., located in the United States, with the majority of the orders to be fulfilled by FY27, while the outstanding order of the subsidiary is to be fulfilled by FY30.

The Waaree Energies IPO consists of a fresh issue of 2.4 crore shares, amounting to Rs 3,600 crore, along with an offer for sale of 0.48 crore shares, totalling Rs 721.44 crore.

The IPO will be open for subscription until October 23, 2024. The price band for the Waaree Energies IPO is set between Rs 1,427 and Rs 1,503 per share. Retail investors can apply with a minimum lot size of 9 shares, requiring an investment of at least Rs 13,527.

For small non-institutional investors (sNII), the minimum lot size is 15 lots (135 shares), requiring Rs 202,905, while large non-institutional investors (bNII) need a minimum of 74 lots (666 shares), amounting to Rs 1,000,998.

The book-running lead managers for the issue include Axis Capital Limited, IIFL Securities Ltd, Jefferies India Private Limited, Nomura Financial Advisory and Securities (India) Pvt Ltd, SBI Capital Markets Limited, Intensive Fiscal Services Private Limited, and ITI Capital Ltd. The registrar for the IPO is Link Intime India Private Ltd

An IPO report from Incred Research Services Private Ltd said that during FY20-24, the company’s revenue/EBITDA/PAT clocked a CAGR of 55%/103%139%, respectively, as the EBITDA margin improved from 4.8% in FY20 to 13.8% in FY24. In 1QFY25, the company’s revenue was at Rs34bn (+2% YoY) while EBITDA and PAT stood at Rs5.5bn (+18% YoY) and ~Rs4bn (+19% YoY), respectively.

“Based on FY25F annualised financials, the IPO’s higher band implies an EV/EBITDA of ~18x, and a P/E of ~27x, which is at a discount to its peers

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