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The ₹4,321.44-crore IPO of Waaree Energies opens today for public subscription. The company has set a price band of ₹1,427-1,503 for the IPO that will close on October 23. The minimum lot size is nine shares.
The IPO combines a fresh issue worth ₹3,600 crore and an offer for sale (OFS) of 48 lakh shares worth ₹721.44 crore by a promoter and existing shareholders. Under the OFS, promoter Waaree Sustainable Finance Pvt Ltd and shareholder Chandurkar Investments Private Ltd are offloading shares.
Half of the issue has been reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Besides, shares worth ₹65 crore have been reserved for employees.
Waaree Energies has raised around ₹1,277 crore from 92 anchor investors, including 17 mutual funds, global pension funds, and sovereign funds.
Anchor investors
The company allotted 85 lakh shares to the anchor investors at the upper end of the IPO price band at ₹1503 a share. Of the total, a third was allocated to the domestic mutual funds investing through 45 schemes. Some of the largest investors included Nomura, a pension fund managed by Blackrock, Mirae Asset Large Cap Fund, Leading Light Fund VCC, and Necta Bloom VCC, among others.
Use of fresh funds
Proceeds from the fresh issue will be used to set up the 6-GW Ingot Wafer, Solar Cell, and Solar PV module manufacturing facility in Odisha. A portion will also be used for general corporate purposes.
Waaree Energies, one of the major players in the solar energy industry in India, is focused on PV module manufacturing. As of June 30, its aggregate installed capacity was 12 GW. It operates five manufacturing facilities: one each 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 issue’s book-running lead managers.
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