Waaree Energies Shares Gain 3% Following ₹792 Crore Acquisition of Enel Green Power


Last Updated: 13th January 2025 - 03:16 pm
Waaree Energies has signed a share purchase agreement with Enel Green Power Development on Friday, marking a significant step into the renewable energy sector.
Following this, the share price of Waaree Energies Ltd surged by up to 3% to ₹2,648 during early trading on January 13, following its announcement to acquire Enel Green Power India Private Ltd (EGPIPL) in a transaction valued at ₹792 crore, subject to customary adjustments.
Details of the Acquisition
Post-acquisition, EGPIPL will become a wholly-owned subsidiary of Waaree Energies. EGPIPL’s energy portfolio includes solar and wind energy projects across India, with a combined operational capacity of approximately 640 MWAC (760 MWDC). This includes various projects co-owned with partners where EGPIPL holds the majority stake. By absorbing this established portfolio, Waaree Energies aims to strengthen its presence in the Indian renewable energy market and accelerate its growth as an Independent Power Producer (IPP).
Strategic Implications
This acquisition is seen as a transformative move for Waaree Energies as it diversifies its revenue streams, reduces dependency on solar panel manufacturing, and expands its wind energy footprint. Additionally, it signals the company’s ambition to transition from being primarily a solar panel manufacturer to a more diversified renewable energy company. Enel Green Power, a leading renewable energy company in Europe, has built a strong presence in India through EGPIPL, making the acquisition a valuable asset for Waaree’s future growth.
The transaction is expected to conclude within three months, pending regulatory approvals, including lender consent. The addition of a robust renewable energy portfolio is expected to bolster Waaree’s competitiveness, particularly in a market that is seeing increasing emphasis on clean energy solutions.
Stock Market Performance and Growth Potential
Waaree Energies has demonstrated impressive market performance. The company made a remarkable stock market debut on October 28, listing at a 66.3% premium over its issue price of ₹1,503 per share on the National Stock Exchange (NSE). The ₹4,321-crore IPO witnessed overwhelming demand, with subscriptions exceeding expectations by 76.34 times. Investors placed bids for an astounding 160.91 crore shares, significantly outnumbering the 2.1 crore shares available, as per exchange data.
Despite its initial success, Waaree Energies’ share price has corrected by 20% over the past month, reflecting market volatility. However, analysts believe that the acquisition could serve as a positive catalyst for the company’s stock, offering long-term growth potential as it transitions into a key player in the renewable energy IPP space.
Operational Footprint
Waaree Energies operates five state-of-the-art manufacturing facilities across India, with plants located in Surat, Tumb, Nandigram, and Chikhli in Gujarat, as well as IndoSolar in Noida, Uttar Pradesh. The company is known for its high-capacity solar panel production, contributing to India’s domestic manufacturing goals in the renewable energy sector.
By expanding its presence in the wind and solar energy sectors, Waaree aims to play a pivotal role in helping India achieve its renewable energy targets of 500 GW of non-fossil fuel capacity by 2030. This acquisition aligns with the government’s emphasis on energy self-reliance and sustainability.
Future Outlook
The acquisition of EGPIPL positions Waaree Energies to further diversify its portfolio and tap into both utility-scale and hybrid energy projects. As the renewable energy sector continues to receive policy support and increased investor interest, Waaree’s strategic moves could reinforce its reputation as a key renewable energy leader in India.
With global renewable energy investments on the rise, the company’s focus on both manufacturing and independent power production could solidify its position and enhance shareholder value in the long term.
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