Waaree Energies' Rs 4,321-cr IPO to open on Oct 21; price band set at Rs 1,427-1,503/ share

New Delhi: Solar panel maker Waaree Energies on Wednesday said it has fixed a price band of Rs 1,427 to Rs 1,503 per share for its Rs 4,321-crore initial share sale.

The Initial Public Offering (IPO) will open for public subscription on October 21 and conclude on October 23 and the bidding for anchor investors will open for a day on October 18, the company announced.

The IPO is a combination of a fresh issue of equity shares aggregating to Rs 3,600 crore and an Offer For Sale (OFS) of 48 lakh equity shares worth Rs 721.44 crore, at the upper end of the price band, by a promoter and existing shareholders. This translates into the total issue size of Rs 4,321.44 crore.

Moreover, shares valued Rs 65 crore have been reserved for the employees of the solar panel maker.

Under the OFS, promoter Waaree Sustainable Finance Pvt Ltd and shareholder Chandurkar Investments Private Ltd are offloading shares.

Proceeds from the fresh issue will be used for setting up the 6 GW of Ingot Wafer, Solar Cell and Solar PV module manufacturing facility in Odisha. Besides, a portion will be used for general corporate purposes.

The company's market valuation has been pegged at over Rs 4,300 crore post-issue at the upper end of the price band.

Half of the issue size has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

Waaree Energies, one of the major players in the solar energy industry in India, is focused on PV module manufacturing with an aggregate installed capacity of 12 GW as of June 30, 2023.

It operates five manufacturing facilities with one factory each, located at Surat, Tumb, Nandigram and Chikhli in Gujarat, and the IndoSolar Facility, in Noida, Uttar Pradesh.

Axis Capital, IIFL Securities, Jefferies India, Nomura Financial Advisory and Securities (India) Private Ltd, SBI Capital Markets, Intensive Fiscal Services and ITI Capital are the book-running lead managers to the issue.