Waaree Renewable Technologies' parent company Waaree Energies is likely to enter the stock market next month. According to Moneycontrol, the parent company of listed company Waaree Renewable Technologies may launch its IPO in mid-October. Earlier, the solar PV module manufacturing company has received approval for its proposed IPO on 20 September.

According to the DRHP, the company plans to raise Rs 3,000 crore by issuing new shares with a face value of Rs 10 per equity share and through an offer for sale (OFS) of 32 lakh equity shares. The OFS includes 27 lakh shares from promoter unit Wari Sustainable Finance Private and 4.5 lakh shares from Chandurkar Investment Private Limited. Apart from this, another shareholder Sameer Surendra Shah will offer 50,000 shares.

Purpose of IPO
According to the filing, the company wants to use the funds raised from the IPO to set up a 6 gigawatt (GW) ingot wafer, solar cell and solar PV module manufacturing facility in Odisha. Apart from this, the funds will be used for general corporate purposes. As of June 30, 2023, Wari's total installed capacity was 12 GW.

About the company
Wari Energies was founded in 2007. It manufactures solar PV modules. The company aims to provide high quality cost-effective sustainable energy solutions to markets across the globe, thereby contributing to reducing carbon footprint. Financial Performance Waaree Energies recorded revenue from operations of ₹6,750 crore in FY23 as against ₹2,854 crore in FY22. The company's profit grew almost 5 times to ₹500.2 crore from ₹79.6 crore in FY22. As of March 31, 2023, the company is net cash flow positive with reserves of ₹642 crore. The company's top-10 customers contributed 65.90% of its revenue in FY23, up from 42.78% in FY22. In the first quarter of FY24, this increased further, with the top-10 customers contributing 76.11%. During this period, the largest customer alone contributed nearly 20% of the revenue. Dependence on exports Waaree Energies is heavily dependent on the US for its revenue. Export sales contributed 73% of total revenue in the first quarter of FY24. The US contributed about 65% of this. The company said in its DRHP, "Our export sales make us vulnerable to risks and uncertainties associated with international markets, especially the US." What are the risks The company's ability to increase retail sales depends on maintaining and growing relationships with franchisees. This includes commercial, industrial and residential business verticals in particular. Failure to do so could have a negative impact on business, cash flow and operations. Retail sales contributed 9.96% to total revenue in FY23. A large portion of the company's retail sales comes from Gujarat. A decrease in demand from this region can have a negative impact on its business, financial condition and cash flow. The company is in the process of setting up a 3 gigawatt manufacturing facility in the US. Any problem in its implementation can affect the company's business.