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Shares of unlisted Waaree Energies, India's largest solar PV module manufacturer, have surged 300% in the last 6 months, backed by investors like Madhu Kela, ValueQuest's Ravi Dharamshi and Arvind Kothari-run Niveshaay, ahead of their planned IPO launch. Divam Sharma attributes the surge in price to the DRHP filing and favorable sector valuations. The unlisted solar stock is commanding a market value of Rs 46,000 crore now. View More

Backed by the likes of Madhu Kela , shares of unlisted Waaree Energies, which is the largest manufacturer of solar PV modules in India, has zoomed 300% in the last 6 months ahead of the company's planned IPO launch later in the year. “Waaree Energies has been one of the most sought-after stocks in the unlisted market. The stock has seen a rally from Rs 250 to currently around Rs 1,800 over the last 2 years. The price has jumped 4x in the last 6 months. It was Rs 550 when the company made its last placement 6 months back,” Divam Sharma, Co-Founder at Unlisted Assets, told ETMarkets. In the unlisted market, the stock is currently commanding a market capitalization of Rs 46,000 crore. The Mumbai-based company, whose manufacturing plants are located in Gujarat, had filed its DRHP with Sebi in December-end last year. The planned IPO comprises a fresh issue worth up to Rs 3,000 crore and an offer for sale (OFS) of up to 32 crore shares. “DRHP filing was one of the biggest triggers for the company for the surge in price. Also, the sector valuations have seen significant tailwinds over the last few years resulting in a significant jump in unlisted share price for the largest solar PV manufacturer with the largest aggregate installed capacity of 12 GW,” Sharma said. Waaree Energies stock outlook Waaree Energies is backed by marquee investors like Madhusudhan Kela, ValueQuest's Ravi Dharamshi and Arvind Kothari-run Niveshaay. At present, promoters own about 72% stake in the company and are going to offload some stake in the company. The company commands a market share of 12% in solar PV modules and is also the largest exporter of solar PV modules with about 50% export market share. A part of the IPO proceeds would be used to set up a 6 GW manufacturing facility in Odisha for ingot-wafers, solar cells and modules. It also plans to set up a $1.6 GW plant for solar PV in the US. In FY23, it reported a revenue of Rs 6,750 crore, up over 3 times in 3 years and a profit of Rs 500 crore (up 10 times in 3 years). Its ROE stood at 26% and ROCE at 31%. At COP26, India announced its targets of achieving net zero by 2070 and 500 GW of non-fossil installed capacity by 2030. China continues to dominate the solar PV market, accounting for about 45% of the global installed capacity, while key European countries control about 23% of the total solar PV installed capacity. Sentiments around China have also opened up a big market for solar module exports from India. "This increase can be attributed primarily to the restrictions imposed by other countries on Chinese goods, including solar modules. These restrictions have created opportunities for Indian manufacturers to fill the gap in the global market and meet the demand for solar modules," CRISIL said in its report. The recently-announced rooftop solar scheme under the Pradhanmantri Suryodaya Yojana with an aim to install rooftop solar power systems for 1 crore households in India is also a big trigger for solar panel manufacturers. "A typical rooftop solar panel requires solar panel (30-35% of total cost), followed by solar inverter (10-15%), Cables (8-12%), Metering and coordination with power distribution authorities and transportation/fabrications and other incidental labour charges. Thus, solar panel companies, including companies Waaree Energies/Renewables, Premier Energies, Insolation could see potential incremental revenue upto Rs 150 billion over next 3 years from rooftop solar segment for households," JM Financial said. The rally in the unlisted market also appears to have a ripple effect on the listed Waaree Renewable Technologies , which is the EPC arm of holding company Waaree Energies. Waaree Renewable has rallied 300% in the last 3 months as investors queue up to buy the sun-sational growth story. Also read | Alpex Solar shares list at 186% premium on NSE SME platform (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)

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