Waaree Energy, India’s largest PV module maker, launches IPO as solar companies make a beeline for the primary market

Waaree’s IPO motorboat follows Hyderabad-based Premier Energies Ltd’s nationalist contented of Rs 2,830 crore successful August. Last month, Gurugram-based Vikram Solar Ltd besides filed its draught reddish herring prospectus (DRHP) with the marketplace regulator for a Rs 1,500 crore offering.

Module Manufacturing & Exports

With 13 GW of module manufacturing capacity, Waaree is India’s biggest star module shaper and raked successful implicit Rs 11,000 crore successful gross successful FY24. In comparison, 2 Adani Enterprises Ltd subsidiaries progressive successful this assemblage made a small implicit Rs 8,000 crore together, portion Premier Energies and Vikram Solar made astir Rs 3,100 crore and Rs 2,500 crore each. Tata Power Ltd’s module shaper TP Solar Ltd made lone Rs 230 crore.

Over the years, revenues and margins for each companies successful the assemblage person accrued considerably. Waaree’s EBITDA margins successful FY24 stood astatine 15.6 per cent successful FY24, compared to 6.9 per cent successful FY22, erstwhile gross was conscionable Rs 2,800 crore.

Waaree’s maturation has been driven by beardown exports, chiefly to the US. In FY24, 58 per cent of its income were from exports compared to 23 per cent successful FY22. Waaree and Adani unneurotic relationship for a ample bulk of module exports from India. Significantly, 1.6 GW of its 3 GW installation successful Texas is acceptable to go operational by the extremity of FY25, further boosting its beingness successful the US market.

Reliance connected China and PLI push

India’s $8-billion star module marketplace has grown to astir 60 GW successful home module assembly capableness and 8 GW successful compartment accumulation capacity.
Still, astir module assemblers proceed to trust connected imported cells from China, which presently has implicit 80 per cent of the planetary marketplace stock successful the star module proviso chain.

In summation to the government’s Rs 24,000 crore Production Linked Incentive (PLI) strategy for integrated module manufacturing, the assemblage is present turning to nationalist equity investors to grow capableness and unafraid proviso chains for some home and export markets, arsenic countries globally look mounting unit to antagonistic the menace of module dumping by Chinese manufacturers.

Waaree, for instance, plans to usage Rs 2,775 crore from its IPO to concern a 6 GW wafer-to-module installation successful Odisha. Premier Energies besides plans to usage its IPO proceeds to partially concern a 4 GW cell-to-module installation successful Hyderabad.

A important magnitude of integrated star module capableness is acceptable to travel online this fiscal year, including Waaree’s 5.4 GW compartment facility. Major players similar Adani, Tata, and US–based First Solar person already begun compartment production, with respective present expanding into ancillary goods specified arsenic solid and backsheets.