India's leading solar panel manufacturer, Waaree Energies, has initiated plans for an initial public offering (IPO), aiming to raise between $300 and $350 million, according to sources familiar with the matter. The company is working with investment banks Axis Capital (NYSE:AXS), Jefferies, and Nomura on the proposed IPO. The draft prospectus is expected to be filed with the market regulator before the end of this year.
Waaree Energies, which boasts an installed capacity of 12 gigawatts (GW), is hoping to secure a valuation of up to $3 billion through the IPO. This move follows two successful rounds of fundraising in which the company raised ₹1,000 crore ($134 million) each in August and October 2022, led by ValueQuest.
The funds raised from the IPO will support the company's capital expenditure plans and debt repayment. It may also provide an exit opportunity for investors from the previous fundraising rounds. Waaree Energies is planning backward integration in solar cell manufacturing with a capacity of 5.4 GW. Over the next two years, the company intends to expand its module capacity to 20 GW, cell capacity to 11.4 GW, and wafer manufacturing capacity to 6 GW.
The company has experienced significant growth in recent years as it capitalized on US import restrictions on certain Chinese goods that impacted the import of solar modules. As a result of this growth, Waaree ended FY23 with an EBITDA of over Rs 850 crore ($114 million) and anticipates it will double in FY24.
Currently, Waaree Energies holds an order book of approximately $5 billion and maintains a dominant market share in exports. Its 12 GW solar panel manufacturing facility is located in Chikhli, Surat, and Umbergaon in Gujarat. In addition to manufacturing, the Waaree group also operates in engineering procurement and construction (EPC) services, project development, solar rooftop solutions, solar inverters, and solar water pumps.
In an effort to reduce imports from China for India's growing renewables sector, the Indian government allocated manufacturing capacity worth 48,337 MW under the Production Linked Incentive (PLI) scheme. Under this scheme, Waaree secured 6,000 MW.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.