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Waaree Energies Gains After Inking Agreement to Acquire Enel Green Power India for Rs 792 Crore

Key Facts:

Solar power in India is an essential source of renewable energy and electricity generation in India.

Waaree Energies Limited (“WEL”) was founded in 1990. It is India’s largest manufacturer of solar PV modules with the largest aggregate installed capacity of 13.3 GW.

Prime Highlights:

The acquisition includes a 640 MW operational portfolio of solar and wind projects.

Expected to diversify revenue streams and enhance Waaree’s capabilities in wind energy.

Key Background:

Waaree Energies, one of India’s largest solar PV module manufacturers, saw a 1.10% increase in its stock price, rising to Rs 2,594.70 following the announcement of its agreement to acquire Enel Green Power India (EGPIPL). The transaction, valued at up to Rs 792 crore, involves the purchase of 100% of EGPIPL’s share capital from its parent company, Enel Green Power Development S.r.l., a major renewable energy firm based in Europe.

EGPIPL, which operates a diverse portfolio of solar and wind energy projects across India, currently holds around 640 MWAC/760 MWDC of operational capacity, with additional projects in development. The company’s portfolio includes joint ventures where EGPIPL holds the majority equity stake. This acquisition is expected to substantially strengthen Waaree Energies’ position in the renewable energy sector, diversifying its revenue streams and boosting its execution capabilities for wind energy projects.

The deal is contingent upon customary approvals, including from lenders, and is anticipated to be completed within three months, pending the fulfillment of conditions outlined in the definitive agreements. The total consideration for the transaction stands at Rs 792 crore, subject to closing adjustments.

Waaree Energies, with a manufacturing capacity of 12 GW, is already a leader in India’s solar energy market. The company operates five manufacturing facilities across India and is engaged in solar project development and power generation. The acquisition of EGPIPL’s renewable assets will complement Waaree’s current operations and contribute to the accelerated growth of its Independent Power Producer (IPP) business. For the second quarter of FY25, Waaree Energies reported a 14.77% increase in consolidated net profit, reaching Rs 361.65 crore

compared to Rs 315.09 crore in Q2 FY24. Revenue from operations grew by 1.04% year on year to Rs 3,574.38 crore for the quarter ending 30 September 2024. This growth further underscores the company’s expanding footprint in the renewable energy market.