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Waa Solar BSE SME IPO review (May apply)

Review By Dilip Davda on May 26, 2018

Waa Solar Ltd. (WSL) is engaged in solar power projects and is currently having installed capacity of around 28 plus MW solar power projects at various sites. Projects include 10.25 MW solar power project at Village Muli, District Surendranagar, in Gujarat on approx. 60 acres of land out of 92 acres land owned by the company, 100 KW Solar power project on Built, Own and Opereate (BOO) basis for Raja Bhoj Airport, Bhopal, 10.42 MW solar power project at District Koppal – Karnataka on 20 acres, 4 MW solar power project in District Mansa – Punjab on 20 acres, 4 MW Solar Rooftop power projects in the city of Vadodara. Company owns the land for solar power projects with on land panels. For all these projects, it has entered into 25 years PPA (Power Purchase Agreement) with respective regions government bodies/authorities. Except for Surendranagar project, all other projects are undertaken by SPVs (Special Purpose Vehicles) promoted by WSL.

Waa Solar

To part finance investment in subsidiaries (SPVs), working capital and general corpus fund needs, WSL is coming out with a maiden IPO of 2000000 equity shares of Rs.10 each at a fixed price of Rs. 161 per share to mobilize Rs. 32.20 crore. Issue comprises offer for sale of 250000 equity shares by promoters and fresh equity issue of 1750000 shares. Issue opens for subscription on 31.05.18 and will close on 04.06.18. Minimum application is to be made for 800 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue constitutes 30.15% of the post issue paid up capital of the company. Issue is solely lead managed by Guiness Corporate Advisors Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Having issued initial equity at par, it raised further equity at a price of Rs.2658 to Rs. 5990 per share and has issued bonus shares in the ratio of 17 for 1 in March 2018. Post issue, WSL's current paid up equity capital of Rs. 4.88 cr. will stand enhanced to Rs. 6.63 cr.

On performance front, for last four fiscals, WSL has (on a consolidated basis) posted revenue/net profits of Rs. 33.31 cr. / Rs. 5.38 cr. (FY14), Rs. 66.58 cr. / Rs. 11.35 cr. (FY15), Rs. 64.84 cr. / Rs. 6.03 cr. (FY16) and Rs. 52.40 cr. / Rs. 4.88 cr. (FY17). For first eight months ended on 30.11.17 it has earned net profit of Rs. 2.33 cr. on revenue of Rs. 33.34 cr. Higher top and bottom lines for FY15 and 16 were due to onetime EPC projects and trading business undertaken by the company. Management is not ruling out undertaking of similar activities going forward at opportune time. For last three fiscals, WSL has posted an average EPS of Rs. 13.24 and an average RoNW of 4.07%. Issue is priced at a discount to its NAV of Rs. 233.24 as on 31.03.17 and post issue NAV of Rs. 214.18. If we annualize latest earnings and attribute it on fully diluted equity post issue then asking price is at a P/E of around 30 and prima facie looks aggressively priced. As per offer document, it has not shown any listed peers to compare with. However, if we consider recent developments in solar power sector wherein many giant companies took over small solar power projects paying around Rs. 10 crore per MW for installed capacities, on said basis this company's valuation is around Rs. 280 crore plus whereas at the offer price; its valuation stands Rs. 110 crore.

On merchant banker's front, this is 25th mandate from its stable in last three fiscals. Out of last 10 listings, all have opened positive with a premium ranging from 2.63% to 28.72% on the day of listings.

Conclusion: Although on prima facie issue appears aggressively priced, considering market value terms, investors may consider investment for long term. (Subscribe for long term).

Conclusion / Investment Strategy

Although on prima facie issue appears aggressively priced, considering market value terms, investors may consider investment for long term.

Review By Dilip Davda on May 26, 2018

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.

About Dilip Davda

Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

(Dilip Davda -SEBI registered Research Analyst-Mumbai,

Registration no. INH000003127 (Perpetual)

Email id: ).

Waa Solar IPO FAQs

  1. 1. Why Waa Solar IPO?

    The initial public offer (IPO) of Waa Solar Limited offers an early investment opportunity in Waa Solar Limited. A stock market investor can buy Waa Solar IPO shares by applying in IPO before Waa Solar Limited shares get listed at the stock exchanges. An investor could invest in Waa Solar IPO for short term listing gain or a long term.

  2. 2. How is Waa Solar IPO?

    Read the Waa Solar IPO recommendations by the leading analyst and leading stock brokers.

  3. 3. Waa Solar IPO what should investors do?

    Waa Solar IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Waa Solar IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts in the above answer.

  4. 4. Is Waa Solar IPO good?

    Our recommendation for Waa Solar IPO is to subscribe for long term.

  5. 5. Is Waa Solar IPO worth Investing?

    As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Waa Solar IPO.

  6. 6. When will Waa Solar IPO allotment status?

    The Waa Solar IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Waa Solar IPO allotment status to check.

  7. 7. When will Waa Solar IPO list?

    The Waa Solar IPO will list on Tuesday, June 12, 2018, at BSE SME.


1. vipul     Link|June 29, 2018 10:03:01 AM
Your review for subscribe is wrong.
Withi 10 days, stock goes from 158 to 70
60% loss of capital
Now think if you have invested,
how will you feel ?
Just reply and take care of your reviews.
Many people invest o your review and book heavy loss.
1.1. Small Investor     Link|July 3, 2018 12:57:07 PM
correct sir
1.2. AmanSingh     Link|July 3, 2018 1:17:22 PM
True sir, I am in huge loss !
What to do now ?