Indian PV Manufacturer To Go Public

• Waaree Energies has filed draft prospectus with SEBI to be able to launch its IPO
• It aims to offer up to 4.01 million shares held by existing shareholders to raise INR 13.5 billion
• Proceeds will be deployed to establish 2 GW solar cell and 1 GW module fab in Gujarat

Indian solar PV module manufacturer Waaree Energies Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to be able to launch its initial public offering (IPO) for further expansion of its production capacity.

The company plans to offer up to 4.01 million shares held by existing shareholders under the proposed IPO worth around INR 13.5 billion ($182 million). Net proceeds will be deployed by the management to establish a 2 GW per annum solar cell facility, and 1 GW annual solar PV module facility. Both the facilities will also be located in Gujarat in Degam village of Navasari district, adjacent to each other. Remaining amount will be invested on general corporate purposes.

For the solar cell fab, Waaree Energies will hire China Kide Engineering Corporation to provide engineering services while solar cell manufacturing equipment will come from SC New Energy Technology Corporation, also from China. If all goes as planned, this fab should be up and running from Q2/2023.

Automation line for the module fab will be purchased from Yingkou Jinchen Machinery Company Limited with whom the company had placed an order for 3 GW automated line, in January 2021 (see Waaree Places Order For 3 GW Module Production Line).  Waaree Energies expects to start commercial operations for the module fab by Q4/2022.

Currently, Waaree Energies operates an aggregate of 2 GW of installed solar PV module manufacturing capacity in India at its 3 manufacturing facilities at Surat, Tumb and Nandigram, all in Gujarat. It plans to expand its manufacturing capacity to include solar cells as it wants to reduce dependence on imported cells and 3^rd party suppliers in India.

Management said it intends to increase its total module manufacturing capacity by 3 GW, and also implement backward integration measures by setting up 4 GW solar cell manufacturing capacity.

The company is one of the bidders for Government of India's Production Linked Incentive Scheme, having offered to build solar cell and module capacity (see IREDA's PLI Scheme Attracts 55 GW In Bids).