13 Jan , 2025 By : Debdeep Gupta
Shares of Waaree Energies Ltd gained as much as 3 percent to Rs 2,648 in early trade on January 13 after the company announced its plans to acquire Enel Green Power India Private Ltd (EGPIPL) in a deal valued at up to Rs 792 crore, subject to customary adjustments. The company signed a share purchase agreement with Enel Green Power Development on Friday marking its strategic entry into the renewable energy space.
Post-acquisition, EGPIPL will become a subsidiary of Waaree Energies. The acquired company owns and operates a solar and wind portfolio in India with an operational capacity of approximately 640 MWAC (760 MWDC). This portfolio includes projects co-owned with partners, where EGPIPL holds the majority stake.
Waaree Energies views this acquisition as an opportunity to expand its footprint in the renewable sector, diversify its revenue streams, and enhance its wind energy project capabilities. Enel Green Power, a leading renewable energy company in Europe, has built a strong presence in India through EGPIPL.
The transaction, which is expected to conclude within three months, is subject to regulatory approvals, including lender consent. Waaree Energies also aims to accelerate the growth of its independent power producer (IPP) business through this acquisition.
The solar panel manufacturer is a recent entrant to the stock market, making a stellar debut on October 28 with a 66.3 percent premium over its issue price of Rs 1,503 per share on the National Stock Exchange (NSE). Its Rs 4,321-crore IPO garnered immense interest, with subscriptions exceeding expectations by 76.34 times. Investors placed bids for an impressive 160.91 crore shares, significantly outpacing the 2.1 crore shares available, as per exchange data.
Waaree Energies currently operates five manufacturing plants across India, with locations in Surat, Tumb, Nandigram, and Chikhli in Gujarat, as well as IndoSolar in Noida, Uttar Pradesh.
Waaree Energies' share price has corrected 20 percent in the past month.
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