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India's largest Solar Panel maker Waaree Energies is still waiting for approval of its IPO. This is after 8 months of filing draft share sale papers with SEBI after concerns about Companies Act non-compliance. This noncompliance restricts unlisted companies from selling shares to more than 200 people without a public offer.
Many Companies Facing Delay in Approval From SEBI
Waaree filed its draft IPO papers on Dec 23. Not just Waaree, but other companies including Mobiqwik are also facing delays in getting IPO approval from SEBI. All this is due to the violation of deemed public offer rules.
However, Money Control reported that this was not a case of deemed public offer noncompliance. According to Money Control, the sale of shares was based on existing shareholders selling their shares to others. The same was true in Waaree's case.
Waaree's Funding History
Waaree raised a funding of Rs 1000 crore in 2023, funded by investment firm Value Quest. Waaree previous round had raised Rs 1040 crore from a group of investors, including family offices and HNI's.
The solar panel maker raised funds in pre-IPO rounds, following which the company sold its shares to other HNI and family offices leading to non-compliance.
Current Status Of Waaree's Case
Based on Waaree's draft share sale agreement, the company had 2,673 individual public shareholders. They hold 27.68% stake. The latest update on the SEBI website shows that the regulator asked for some clarification from the company's bankers on May 21. SEBI is still waiting for a response.
“Since it is a non-compliance of the Companies Act, Waaree will have to sort this out with the Registrar of Companies and Ministry of Corporate Affairs (MCA). They may have to pay a penalty for the non-compliance. But the process will take time as it will need approval from the MCA. Thus, the IPO is facing a long delay,” one of the sources said.
About Waaree Energies
Waaree Energy India's largest Solar Panel maker, had an installed capacity of 12MW as on June 23.
It operates from four different facilities namely Nandigram, Surat, Tumb, and Chikhli in Gujarat. They have a spread of 136.30 Acres.
Waaree reported a revenue of Rs 6,860 crore in FY 23 as against Rs 2,951 crore in the previous year. It also reported a profit of Rs 500 crore in FY23 as against Rs 80 crore in the previous year. This is a significant jump.
Interested in buying Waaree Energies shares?
As India progresses towards its renewable energy goals, partnerships like this will be driving forces towards a greener and more sustainable future. Looking at the several milestones of Waaree Energies, we can say that the company’s value will soon shoot up. Currently, the waaree Energies Ltd share price is now sitting at ₹2,250.
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