ValueQuest’s Maiden PE Fund S.C.A.L.E. Scores Big with Waaree Energies IPO
ValueQuest S.C.A.L.E. Fund was the sole institutional investor on the cap table investing at Rs. 550 per share in July 2023 as per company’s DRHP filings. Waaree’s shares were priced at Rs. 1503/- per share for the IPO. Interestingly, the fund has further stepped up its investment through an anchor book allocation.
ValueQuest had backed Waaree Energies during its maiden equity fundraise in 2022 after it decided to defer its IPO plans. It also led the subsequent round in July 2023.
With its robust market position and significant growth trajectory, Waaree is emerging as the leader in the energy transition space. It has attracted strong demand and interest from both institutional and retail investors in its IPO. The IPO received the highest number of applications of ~97 lakhs and ranks in the top 3 IPOs in the last 15 years of Indian stock exchanges history. The IPO marks a pivotal moment in Waaree’s journey.
Commenting on the investment Mr. Hitesh Doshi, chairman & managing director of Waaree Energies said, “ValueQuest has been a key partner in our journey since our maiden fundraise, acting not only as one of our earliest institutional investors but also as a steadfast supporter of our vision. Their continued backing in each funding round has been instrumental in accelerating Waaree’s growth and strengthening our leadership in the renewable energy sector. ValueQuest’s strategic involvement has enabled us to expand our manufacturing capabilities, scale operations and further our mission to provide sustainable energy solutions. We deeply value our relationship with ValueQuest and the significant role they’ve played in helping us achieve our milestones.”
Waaree Energies Limited, the flagship company of the Waaree Group, stands as India’s largest solar module manufacturer, playing a key role in the country’s renewable energy landscape. The company achieved remarkable growth, with profits after tax rising from ~Rs. 48 Cr in FY21 to ~Rs. 1,275 Cr in FY24. It has increased its module capacity from 2 GW in FY21 to 13.3 GW currently, a 6x increase within 3 years. Waaree is a dominant player in the Indian market and plays a leading role in the country’s solar module exports, commanding a substantial share.
The company is expanding through backward integration by setting up a 5.4GW solar cell facility and a 6GW fully integrated manufacturing facility to produce ingots, wafers, solar cells and modules, positioning itself as a full-spectrum player across the solar value chain. It is also setting up a manufacturing plant in the U.S., strengthening its global presence and capacity to meet growing renewable energy demand, further cementing its leadership in the solar sector.
ValueQuest has consistently maintained a positive outlook on energy transition, identifying it as a significant long-term megatrend. Ravi Dharamshi, Founder and CIO of ValueQuest, remarked, “Waaree Energies has emerged as a pioneer in the energy transition sector, positioning itself as one of the largest solar equipment manufacturers. The company is capitalizing on two concurrent global megatrends – the accelerating shift towards renewable energy and the ongoing reconfiguration of global supply chains. These trends are reshaping industries and presenting Waaree with substantial growth opportunities while contributing to the domestic and global supply chain realignment.”
Commenting on the investment, Mr. Pushkar Jauhari, Managing Director and Head of Private Equity at ValueQuest, stated, “Waaree is well-positioned to play a pivotal role in the future of energy infrastructure, reinforcing the importance of green energy. ValueQuest remains focused on the renewable energy sector, backing companies across the value chain. Our increased investment in Waaree Energies, along with other recent commitments, reflects our strong belief in the sector.”
