Waaree Energies Limited , a prominent player in the renewable energy sector, has made a significant move to bolster its presence in the energy storage market. The company has invested ₹300 crore in its wholly-owned subsidiary, Waaree Energy Storage Solutions Private Limited (WESSPL), through a rights issue. This strategic investment is aimed at establishing a state-of-the-art 3.5 GWh Lithium-Ion storage cell manufacturing plant.

Investment Details

The investment, disclosed in a regulatory filing, involves the issuance of 60 crore partly paid-up equity shares with a face value of ₹10 each. The shares were issued at par, with ₹5 paid on application and the balance ₹5 payable on call. This capital infusion is expected to significantly boost WESSPL's capabilities in the energy storage solutions sector.

Subsidiary Background

WESSPL, incorporated on February 4, 2020, in Mumbai, Maharashtra, is a relatively new entity in the Waaree group. The company has not reported any turnover in the last three financial years, indicating that it has been in a preparatory phase for this major project.

Strategic Implications

This move by Waaree Energies underscores the company's commitment to expanding its footprint in the renewable energy ecosystem. The investment in lithium-ion storage technology is particularly noteworthy, given the growing importance of energy storage solutions in the renewable energy sector. The 3.5 GWh manufacturing plant is expected to position Waaree as a significant player in the energy storage market, complementing its existing solar energy business.

Market Impact

The investment comes at a time when the demand for energy storage solutions is on the rise, driven by the increasing adoption of renewable energy sources and the need for grid stability. By venturing into lithium-ion cell manufacturing, Waaree Energies is positioning itself to capture a larger share of the value chain in the renewable energy sector.

Future Outlook

While the company has not provided specific timelines for the plant's completion, the substantial investment indicates Waaree's confidence in the future of energy storage solutions. This move is likely to enhance the company's competitive edge in the renewable energy market and contribute to India's clean energy goals.

As the renewable energy landscape continues to evolve, Waaree Energies' strategic investment in lithium-ion storage technology could prove to be a pivotal step in shaping the company's future growth trajectory and its role in India's energy transition.

Waaree Energies Limited , a prominent player in the energy sector, has announced a strategic move to expand its presence across the energy value chain. The company's wholly-owned subsidiary, Waaree Power Private Limited, is set to acquire a 76% stake in Racemosa Energy (India) Private Limited, a manufacturer of smart meters.

Acquisition Details

The Board of Directors of Waaree Energies Limited approved the acquisition during a meeting held on September 18. The deal, valued at approximately ₹53.00 crores, will be executed through cash consideration. Upon completion of the transaction, Racemosa Energy will become a step-down subsidiary of Waaree Energies Limited.

About Racemosa Energy

Racemosa Energy (India) Private Limited, incorporated on May 21, 2018, in Maharashtra, specializes in the manufacturing of smart meters. The acquisition of this company aligns with Waaree's strategy to integrate smart meter technology into its operations and strengthen its position in the energy sector.

Strategic Implications

The acquisition is expected to have significant implications for Waaree Energies:

1. Expansion of Product Portfolio: By acquiring a smart meter manufacturer, Waaree is diversifying its product offerings in the energy sector.
2. Value Chain Integration: The move is aimed at strengthening Waaree's presence across the energy value chain, potentially leading to improved operational efficiencies.
3. Technological Enhancement: The integration of smart meter technology could enhance Waaree's capabilities in energy management and distribution solutions.

Transaction Timeline and Conditions

The transaction is subject to several conditions:

• Execution of definitive agreements
• Fulfillment of customary closing conditions
• Obtaining necessary regulatory approvals

The indicative time period for the completion of the acquisition is set for the fiscal year 2025-26, with provisions for extension if agreed upon by both parties.

Financial and Regulatory Aspects

• The acquisition is not classified as a related party transaction.
• No specific governmental or regulatory approvals have been mentioned as required for the acquisition.

Market Impact

This strategic move by Waaree Energies Limited demonstrates the company's commitment to growth and technological advancement in the energy sector. The acquisition of Racemosa Energy could potentially position Waaree as a more comprehensive solution provider in the energy market, especially in the growing field of smart energy management.

As the energy landscape continues to evolve with a focus on smart and efficient technologies, Waaree's latest acquisition appears to be a step towards future-proofing its business model and expanding its market reach.