Waaree Energies Ltd., a Mumbai-headquartered solar panel manufacturer, has raised Rs. 1,000 crore (about USD 121.4 million) from private investors and its promoters for the expansion of the company’s operations.
Major Funding for Waaree’s PV Manufacturing from Private Investors
Talking about this funding, Mr. Hitesh Mehta, CFO, Waaree Energies said during an interview, “Most of the capital has been received from the private players and family offices. Even the promoters of the company put in additional amount. Around 90% of the investment is from private investors and 10% from the promoters”.
Mr. Mehta further added that this is the first time in India that private investors have put in money for renewable energy equipment manufacturing. He also said that the company will explore its options to raise debt for funding its expansion.
Waaree to Enhance Solar PV Module Production and Start Solar Cell Manufacturing
Commenting on the utilisation of these funds, Mr. Mehta said that the funds raised will be invested towards increasing the company’s solar module manufacturing capacity. Currently, the company’s solar module manufacturing capacity sits at 2 GW, which will be expanded to 9 GW by early 2023.
Under this expansion, Waaree has acquired 100 acre of land in Chikhli in Navsari district, Gujarat. The company will develop a greenfield plant on this land parcel, which will have a solar module manufacturing capacity of 7 GW, and a solar cell manufacturing capacity of 5.4 GW.
Waaree Cementing its Position as a Major Solar PV Player
In January 2022, Waaree had received approval from the Securities and Exchange Board of India (SEBI) for launching an Initial Public Offering (IPO). This IPO will entail the issue of shares worth Rs. 1,350 crore. Up to 4,007,500 equity shares of the company held by existing promoters and shareholders will be up for sale. From the amount raised from this IPO, Waaree will be investing Rs. 910.31 crore in solar cell manufacturing and Rs. 141.24 crore for solar module manufacturing. The remaining amount raised from this IPO will be used for the company’s corporate expenses.
In May 2022, Waaree Energies signed a multi-year agreement with US-based CubicPV for the annual supply of 1 GW solar cells to the former.
Also in May, Waaree received the approval from National Company Law Tribunal (NCLT) to acquire Indosolar, an Indian PV cell and solar panel manufacturer under Indian Bankruptcy Code (IBC).
About Waaree Energies Ltd.: Mumbai-headquartered Waaree Energies Ltd. is a member of the Waaree Group. It was founded in 1989 and is a manufacturer of solar panels and modules. Other than solar equipment manufacturing, the company provides solar EPC solutions. The company currently has manufacturing units in Umbergaon and Surat, Gujarat.