Waaree Energies Gains After Inking Acquisition Deal with Enel Green Power India for Rs 792 Crore

Introduction:

Waaree Energies noticed a 1.10% upward thrust in its inventory rate, attaining Rs 2,594.70, following the announcement of a prime acquisition deal. The company has signed a share purchase settlement with Enel Green Power Development S.R.L., a European chief in renewable electricity, to gather 100% of the percentage capital of Enel Green Power India (EGPIPL) for a attention of up to Rs 792 crore.

EGPIPL, which operates a portfolio of solar and wind energy projects across India, holds an impressive operational capacity of approximately 640 MWAC / 760 MWDC. It also has several additional projects under development, enhancing its presence in the Indian renewable energy market.

The operational portfolio includes joint ventures with various partners, with Waaree set to gain a majority stake. This acquisition is seen as a strategic move by Waaree Energies to strengthen its position in the renewable energy space, diversifying its revenue streams, boosting its wind energy capabilities, and accelerating growth in its Independent Power Producer (IPP) business.

Waaree Energies Expands Renewable Portfolio with Rs 792 Crore Acquisition of Enel Green Power India:

Strengthening Waaree Energies’ Position in the Renewable Sector

Waaree Energies is India’s largest manufacturer of solar photovoltaic (PV) modules, with a total installed capacity of 12 GW. The company operates five manufacturing facilities across India and is involved in solar module production, project development, and electricity sales. This acquisition is expected to complement Waaree’s existing operations by enhancing its renewable energy capabilities, particularly in the wind energy sector.

The deal is also seen as a step towards Waaree’s long-term strategy of expanding its IPP business and ensuring sustainable growth. The addition of EGPIPL’s projects will diversify Waaree’s renewable energy portfolio, supporting its mission to contribute to India’s growing demand for clean energy solutions.

Financial Performance Overview

For the second quarter of FY25, Waaree Energies reported a 14.77% increase in consolidated net profit to Rs 361.65 crore, compared to Rs 315.09 crore in the same period last year. This robust financial performance was supported by a 1.04% year-on-year increase in revenue from operations, which stood at Rs 3,574.38 crore for the quarter ending 30 September 2024.

The company’s growth trajectory, coupled with this strategic acquisition, positions Waaree Energies as a prominent player in India’s renewable energy market, well-poised to capitalize on the country’s increasing shift towards clean energy sources.

Conclusion

Waaree Energies’ acquisition of Enel Green Power India marks a significant milestone in the company’s expansion plans and is expected to bolster its growth prospects in the Indian renewable energy sector. The strategic deal will not only diversify Waaree’s energy portfolio but also strengthen

its capabilities in wind energy and support the rapid growth of its IPP business. With its strong financial results and continued focus on innovation and expansion, Waaree Energies is well on its way to solidifying its leadership in the renewable energy space in India.

FAQ:

Q1: What is the deal between Waaree Energies and Enel Green Power India?

A1: Waaree Energies has signed a share purchase agreement with Enel Green Power Development S.r.l., to acquire 100% of the share capital of Enel Green Power India (EGPIPL) for Rs 792 crore. This acquisition will allow Waaree to expand its renewable energy portfolio by integrating EGPIPL’s solar and wind energy projects in India.

Q2: What are the key details of the acquisition?

A2: Waaree Energies will acquire EGPIPL’s entire operational capacity, which includes approximately 640 MWAC / 760 MWDC from solar and wind projects. Additionally, EGPIPL has ongoing projects under development. The acquisition is valued at Rs 792 crore, with the transaction subject to customary regulatory approvals, including from lenders. It is expected to be completed within three months.

Q3: Why is this acquisition important for Waaree Energies?

A3: This acquisition is a strategic move to diversify Waaree Energies’ revenue streams and enhance its capabilities in wind energy projects. By adding EGPIPL’s established renewable energy projects to its portfolio, Waaree is poised to accelerate its growth in the Independent Power Producer (IPP) business and strengthen its position in the renewable energy sector in India.

Q4: How will this acquisition affect Waaree Energies’ operations?

A4: The acquisition will expand Waaree’s presence in both solar and wind energy, allowing the company to better serve the growing demand for clean energy in India. It will also strengthen the company’s execution capabilities, helping Waaree become more competitive in the renewable energy market. The acquisition complements Waaree’s existing solar PV manufacturing operations and will support its overall growth strategy.

Q5: What is Waaree Energies’ current standing in the renewable energy market?

A5: Waaree Energies is the largest manufacturer of solar photovoltaic (PV) modules in India, with a total installed capacity of 12 GW. The company has a robust presence across the solar sector and operates five manufacturing facilities in India. With this acquisition, Waaree is expanding into wind energy, further enhancing its position in the Indian renewable energy market.

Q6: What are Waaree Energies’ recent financial results?

A6: In the second quarter of FY25, Waaree Energies reported a 14.77% year-on-year increase in consolidated net profit, reaching Rs 361.65 crore, compared to Rs 315.09 crore in Q2 FY24. The company’s revenue from operations grew by 1.04% year-on-year, amounting to Rs 3,574.38 crore for the quarter ending September 30, 2024.

Q7: How will the acquisition impact Waaree Energies’ future growth?

A7: The acquisition is expected to play a pivotal role in Waaree Energies’ future growth by expanding its renewable energy portfolio. The addition of EGPIPL’s wind and solar projects will increase the company’s overall capacity, diversify its energy offerings, and help it capitalize on the fast-growing demand for clean energy in India. The acquisition also strengthens Waaree’s IPP business and aligns with the company’s long-term strategy for sustainable growth.

Q8: When is the acquisition expected to be completed?

A8: The acquisition is subject to customary approvals, including from lenders. Waaree Energies expects to complete the transaction within three months, pending the fulfillment of conditions outlined in the definitive agreements.

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