Indian solar panel maker Waaree Energies to raise US$361 million in IPO

WAAREE Energies, India’s top solar panel maker, filed for an initial public offering (IPO) on Friday (Dec 29), aiming to raise US$361 million to cash in on a stock market at record highs and the country’s aim for more renewable energy amid surging demand for power.

Waaree adds to the record number of Indian companies – the latest being retailer FirstCry and electric scooter-maker Ola Electric – that are aiming to go public as healthy economic growth and expectations of political stability in 2024 fuels hopes of the stock market continuing to rally to record highs.

Waaree’s IPO will include the sale of 3.2 million shares, including up to 2.7 million shares by Waaree Sustainable Finance, an energy equipment maker and Waaree Energies’ largest shareholder.

Waaree Energies itself plans to raise 30 billion rupees (S$475.2 million) by selling an unspecified number of new shares, according to its draft prospectus.

The company said it will use some of that to fund a planned 6 gigawatt (GW) manufacturing facility in the eastern Indian state of Odisha.

Green energy companies are benefiting from India’s aim to boost non-fossil fuel energy capacity, including from solar and wind sources, amid surging power demand from factories and households.

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That helped Waaree, whose rivals include Adani Green and Tata Power, post a more-than-sixfold surge in profit for the year ended Mar 31.

The company’s ambitions also lie abroad, with it announcing plans last week to invest up to US$1 billion to build a factory in Texas.

The lead managers to Waaree’s IPO include SBI Capital Markets, Jefferies India, and Nomura Financial Advisory and Securities. REUTERS