Waaree Energies shares drop nearly 5%; here’s what investors should know

Shares of solar module manufacturer Waaree Energies declined on Friday, April 24, after the US imposed preliminary anti-dumping duties on solar cells and panels imported from India, Lao People’s Democratic Republic (Laos) and Indonesia.

The stock slipped 4.60% to ₹3,258 apiece on the National Stock Exchange (NSE) at 9:20 am.

Shares of Vikram Solar and Premier Energies also declined by over 1%.

The U.S. Commerce Department, according to a fact sheet posted on the agency's website, calculated preliminary duty rates, called 'dumping margins', of 123.04% for imports from India, 22.46% for imports from Laos, and 35.17% for imports from Indonesia.

This comes after 'The Alliance for American Solar Manufacturing and Trade' (AASMT) filed a petition alleging that dumped and cheap solar imports from India, Laos and Indonesia undermined American manufacturing.

On its website, AASMT said the Commerce department made affirmative preliminary anti-dumping determinations in its probe into crystalline silicon photovoltaic (CSPV) cells, whether assembled or not into modules, from India, Laos, and Indonesia.

"The preliminary determinations confirm that producers in these countries are dumping solar cells and modules into the US market at unfairly low prices, undercutting American-made products and distorting market competition at a pivotal moment for the domestic manufacturing sector. As a result, preliminary anti-dumping duties will now be imposed, and cash deposits collected to offset the unfair pricing margins identified by Commerce," the alliance said.

Combined with the preliminary countervailing duty determinations, the report suggests that the current AD/CVD rates are around 234% for India, 121% to 178% for Indonesia, and 103% for Laos, it added.

"The margins announced today represent the next step in a rigorous, multi-stage process that will continue to evolve as Commerce gathers additional data and completes its investigation. Today’s rates confirm that these countries were dumping solar imports in the US," AASMT said.

A final decision from the commerce department for solar cells is expected to come in July.