Waaree Energies shares rise after board approves acquisition of transformer producer worth ₹293 crore

Shares of Waaree Energies Ltd.  as much as gained 3% on Tuesday, May 20, after the company's board on Monday approved the acquisitions of Kamath Transformers Pvt. Ltd. for ₹293 crore.

The acquisition is part of Waaree Energies' business expansion activity and will be completed in the ongoing fiscal year. The company will acquire 100% shareholding in Kamath Transformers on a cash consideration basis.

Waaree Energies said Kamath Transformers is a well-established and progressive company in transformer manufacturing. It was incorporated on May 23, 1996. The company reported a turnover of ₹25.73 crore in financial year 2022, ₹54.41 crore in financial year 2023 and ₹122.68 crore in financial year 2024.

Additionally, the company's board also approved the acquisition of newly-incorporated non-operating company Green New Delhi Forever Energy Pvt Ltd by Waaree Forever Energies Pvt Ltd, which is a wholly-owned subsidiary of the company. The acquisition is solely for facilitating and holding specific power projects under the independent power producer (IPP) framework.

On April 25, Waaree Energies' six-month lock-in period for shareholders ended, making 15 crore shares eligible for trading.

Waaree Energies reported its strongest-ever quarter with its earnings before interest, taxes, depreciation and amortisation (EBITDA) and profit at ₹920 crore and ₹620 crore, respectively.

Its EBITDA margin of 23% was up 879 basis points from the previous year, due to the start-up of 1.4 GW cell facility, enabling entry into high-priced DCR modules. Its fourth quarter production was robust at 2.1GW, up 53% from the year-ago period.

Shares of Waaree Energies are trading 2% higher on Tuesday at ₹3,008. The stock still trades below its 52-week high of ₹3,743.

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