Indian solar product manufacturer Waaree Energies Ltd has received final approval from the national capital markets regulator to move forward with its plans for an initial public offering (IPO) aimed at raising funds to expand its manufacturing capacity.
The Securities and Exchange Board of India (SEBI) has approved the Mumbai-based company's proposal, which includes a fresh issue of shares valued at INR 30 billion (approximately USD 258.9 million/EUR 322.8 million) alongside an offer for sale (OFS) of up to 3.2 million equity shares, each with a face value of INR 10. The existing shareholders and promoters participating in the OFS include Waaree Sustainable Finance and Chandurkar Investments. The total targeted amount for the transaction was not disclosed in the press statement.
According to Waaree's draft red herring prospectus (DRHP) filed with SEBI in early 2024, part of the funds raised will be allocated for the construction of a new 6-GW factory in Odisha dedicated to manufacturing wafers, cells, and modules. Additionally, some of the proceeds will be used to support the company's general corporate expenses.
As of June 2023, Waaree Energies had a production capacity of 12 GW for solar modules and 5.4 GW for solar cells across its factories located in Chikhli, Surat, Tumb, and Nandigram in Gujarat.
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