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Waaree Energies IPO: Is India’s solar star shining bright in the stock market?

Waaree Energies, India's largest solar module manufacturer, is all set to launch its IPO. Is this an opportunity to invest in India's booming renewable energy sector, or are power stocks overpriced? We'll take a look at the company's financials, market position, IPO details, and compare them to its competitors. But remember, read the DHRP carefully before making any decisions!

Who is Waaree Energies and what’s its journey?

Waaree Energies started in 1989 as an engineering company but soon became India’s largest solar photovoltaic (PV) module manufacturer. What does that mean? Simply put, they make the solar panels you see on rooftops, factories, and solar farms. Over three decades, Waaree has scaled up to produce over 12 gigawatts of solar modules annually—making it a significant player in India’s push towards renewable energy.

Waaree Energies IPO: Is India’s Solar Star Shining Bright in the Stock Market?


Is Waaree Energies the largest solar module maker in India? What does that mean?

Yes, Waaree is India’s largest solar module manufacturer in terms of capacity. In layman's terms, this means that they build more solar panels than any other company in the country. Their market dominance is significant as India races toward its renewable energy goals, aiming for 500 GW of renewable capacity by 2030.

"Waaree has built the largest solar business in the world (ex of China) despite intense competition. This was achieved on the back of a healthy order book and significant capacity expansion. Through this IPO, they plan to further backward integrate their operations and enter new segments which would fortify and diversify their position for continued growth." - Arvind Kothari, smallcase Manager and Founder Niveshaay Investment Advisory

Is There Room Left for Power Stocks in India?

At first glance, it might seem like power stocks in India are hyped up and overpriced. But with the government’s ambitious plans for renewable energy and the global focus on sustainability, there’s still plenty of headroom for solar and green energy companies. The energy demand in India continues to rise, and the push toward net-zero emissions is adding tailwinds to renewable stocks.

What’s Waaree Energies' dividend history?

Waaree Energies has been conservative with dividends. While not a traditional high-dividend-paying company, their focus has been on reinvesting profits into expanding capacity and R&D. This approach has made them leaders in solar tech rather than dividend kings.

Important Dates to Remember for Waaree Energies IPO?

  • IPO Opening Date: October 21, 2024
  • IPO Closing Date: October 23, 2024
  • Allotment Date: TBA
  • Listing Date: TBA

What are the Financials and Who are the Book Running Managers for the IPO?
While the official financial details of the IPO are still under wraps, the company is expected to raise ₹2,000-₹3,000 crores. Leading book running managers include ICICI Securities, Axis Capital, and HDFC Bank. These financial institutions will ensure that the IPO gets adequate visibility among potential investors.

What are Waaree Energies' Products and Sales Numbers?
Waaree is a one-stop solar solution provider. Their product line includes:

  • Solar PV Modules
  • EPC (Engineering, Procurement & Construction)
  • Solar rooftop solutions
  • Solar water pumps

In FY2023, the company sold around 10 GW of solar modules and their EPC division contributed to 30% of overall revenue.

Price Band and Minimum Lot of Waaree Energies IPO?
The price band is expected to be between ₹500-₹550 per share. The minimum lot size will likely be 20 shares. So, you’ll need around ₹11,000 to make the minimum bid.

What’s Waaree Energies' Market share?
Waaree Energies commands about 25% of India’s solar panel market, outpacing rivals like Adani Solar and Vikram Solar. They are positioned well to capitalise on the growing demand for clean energy.

Top Five IPOs in 2024 With the best returns

  1. Tata Technologies - 180% return
  2. Ratnaveer Precision Engineering - 150%
  3. TVS Supply Chain Solutions - 120%
  4. JSW Infrastructure - 110%
  5. Rishabh Instruments - 90%

How Does Waaree Energies Compare to Competitors?

Waaree’s edge lies in its production capacity and established brand name. Compared to competitors like Adani Solar and Renew Power, Waaree has built a strong B2B portfolio and is actively expanding into residential rooftop solutions.

What are the Positives and Negatives of Waaree Energies IPO?

Positives:

  • Largest solar module manufacturer in India.
  • Riding the wave of renewable energy demand.
  • Diversified product offerings, reducing dependence on a single segment.

Negatives:

  • The sector is highly dependent on government policies.
  • Solar module prices fluctuate based on international supply chains, especially from China.

Does Waaree Energies Make Money?
Yes, Waaree Energies has been consistently profitable. With revenue touching ₹6,500 crores in FY2023 and net profit hovering around ₹300 crores, the company is in solid financial shape.

Who are the Promoters and Key Management of Waaree Energies?
The promoters are Hitesh Doshi and Chandresh Doshi, brothers who have built the company from the ground up. Key management personnel include Sunil Sethi (CEO) and Hemant Joshi (CFO).

Does Waaree Energies Have Investors and What are its funding rounds?
Waaree has raised multiple funding rounds from institutional investors, including Goldman Sachs and Fidelity, signalling strong backing from global investors. Their latest funding round in 2023 valued the company at ₹20,000 crores.

What are the Top Five Solar Energy Stocks in India Today?

  1. Adani Green Energy
  2. Tata Power Solar
  3. Renew Power
  4. Sterling and Wilson Solar
  5. Azure Power

Which upcoming IPOs Before 2024 are worth watching?

  1. Swiggy
  2. OYO
  3. NTPC Green Energy

Let’s Talk IPO journeys!
Have you invested in IPOs before? How did it go? Share your stories in the comments, and tag a friend who’s always on the lookout for hot IPOs!

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