Waaree Energies IPO to open next week: Know the company’s competitors

Waaree Energies, India’s largest solar PV module manufacturer with an installed capacity of 12 GW as of June 30, 2024, is launching its Initial Public Offering (IPO) next week. The IPO will open on October 21, 2024, and close on October 23, 2024. Established in 2007, Waaree Energies began with a focus on solar PV module manufacturing and has rapidly expanded its capacity from 4 GW in fiscal 2022 to 12 GW by mid-2024.

However, Waaree Energies faces intense competition from other Indian module manufacturers in the market. Some of the key competitors across business verticals include Vikram Solar Limited, Adani Mundra Solar PV Limited (Adani), Premier Energies Limited, RenewSys India Private Limited, Emmvee Photovoltaic Power Private Limited, and Alpex Solar Private Limited. As per the offer document, the company has listed Websol Energy and Premier Energies as its listed peers.

Additionally, companies like Tata Power Company and Servotech Power System also derive revenue from the PV module segments.

(Screener.in)

The mainboard issue is worth ₹4,321.4 crore. The IPO comprises fresh issuance of 2.4 crore shares aggregating to ₹3,600 crore and an OFS of 48 lakh shares aggregating to ₹721.44 crore.

Websol Energy System Limited

Websol Energy System Limited (WESL) has been producing and selling solar photovoltaic cells and modules since 1994. Its manufacturing facility is situated in the Falta Special Economic Zone in West Bengal, India. The company in FY24 reported revenue of ₹25.86 crore on a consolidated basis, while its operating EBITDA stood at negative ₹(6.58) crore.

Servotech Power System

Servotech is engaged in the manufacturing, procurement and distribution of a range of high-end advanced solar products. With a remarkable legacy of over two decades in establishing solar-powered infrastructure and commissioning projects on a massive scale pan India, Servotech has led to its astonishing success, overwhelmingly.

In FY24, Servotech consolidated revenue increased by an impressive 27.50%, reaching ₹356 crore and profit also saw a healthy growth of 6.66%, reaching ₹11.80 crore.

Premier Energies Ltd

Incorporated in April 1995, Premier Energies' product portfolio includes solar cells, solar modules, monofacial and bifacial modules, as well as EPC and O&M solutions.

As of FY24, Premier Energies is India’s second-largest integrated solar cell and solar module manufacturer, with an aggregate annual installed capacity of 2 GW for solar cells and 3.36 GW for solar modules.

Tata Power Company Ltd

Through its subsidiary, Tata Power Solar System Ltd it has established a cluster that encompasses utility-scale solar, wind, hybrid, and complex assets, manufacturing of solar modules and cells, and solar EPC business. In the current financial year, Tata Power Solar System Ltd has commissioned a 4 GW Solar module line, with the 4 GW cell line to be commissioned in the next financial year.

FY24’s financial summary of domestic module manufacturers

(Source- RHP) (Note - Vikram Solar and Tata Power Solar System are unlisted entities, however, Tata Power Solar System is a subsidiary of the listed entity Tata Power Company)

Waaree Energies has demonstrated impressive financial growth since FY23, with net profit rising from ₹79.65 crore to ₹500.28 crore and further to ₹1,274.38 crore in FY24. The company is well-positioned for future expansion, and its market leadership, along with increasing margins and profitability, is expected to attract significant investor interest in the upcoming IPO.