Waaree Energies Yet To See Approval For Issue Of IPO

Notwithstanding the filing of documents for the issue of Initial Public Offering (IPO) with the Securities & Exchange Board of India (SEBI), India’s leading solar module manufacturer Waaree Energies’ is yet to see the plan becoming a reality soon. The green company is yet to see approval from the market regulator. 

Some media reports have hinted towards the alleged non compliance to Section 42 of the Companies Act 2023, which bars unlisted companies from trading securities beyond a certain threshold before being listed in the Indian stock exchange. In Waaree’s case, it allegedly crossed the threshold of over 200 shareholders in a financial year without making a public offer. Waaree had last raised funds from multiple investors in 2023, led by ValueQuest.

The solar module manufacturer which has its module manufacturing plants mainly in Gujarat has now eyed to open an integrated solar manufacturing factory in Odisha. It is also one of the winners of India’s PLI (production linked incentive) scheme to commission plants to ensure production of solar modules with backward integration by co-producing solar cells, wafers and ingots. The company had earlier filed its Draft Red Herring Documents (DHRP) with SEBI on December 29, 2023. 

Waaree Energies currently has the highest enlisted capacity of solar module manufacturing, leaving behind many of the competing brands in the country. It is also one of very few Indian solar module companies to open solar module manufacturing units in the United States (US) which is slated to start commissioning from September this year. 

Waaree’s Chairman Hitesh Doshi in his interviews earlier had indicated the expansion plans of the company due to its new solar module manufacturing plants outside Odisha and the commissioning of its new production lines of ingots, wafers and solar cells. With an aim to boost its financials, the company had planned to issue IPOs to generate around Rs 30,000 crore from the market. 

As per reports, several IPOs witnessed a delay in sanctions due to some defiance of norms due to several reasons. Reports indicate that several investors in some IPO-bound firms sold off their shares, leading to such issues. 

Besides Waaree Energies, several green companies have already ventured into the stock market and taking assistance of the public borrowings. Companies like Sterling & Wilson, Tata Power, Websol Energy, Borosil Renewable, SJVN, NTPC, NLC India, Adani Green, Gensol Engineering, Waaree Renewable and others are already in the space.

In the module manufacturing and solar cell space, the company faces competition from Tata Power, Websol Energy and now the recently issued IPO of Premier Energies Limited. The entry of the largest solar module manufacturer into the fray is likely to create disruption in the public borrowing marketplace.