Target: ₹4,260
CMP: ₹3,095.25
Waaree Energies announced acquisition of 5.37mn Series B Preferred Shares of United Solar Holding Inc (USH) for $30 million, which would provide it stake in USH’s major advanced 100 ktpa polysilicon plant in Oman, along with likely anchor customer status, thereby backward integrating it upstream in the PV value chain. While percentage stake is not disclosed, ownership should be under 5 per cent, based on publicly available information and an estimated project cost of $1.6 billion.
The plant has the capacity to produce 40 GWpa of modules, hence a sizable portion of its 10 GW Nagpur wafer-ingot requirement is likely to be met.
Being one of the major non-Chinese plants globally and located in the Sohar Freezone (FTA with US, India, etc), the cost curve (though higher than tier 1 Chinese players’) could be much lower vs other parts of the world, while also meeting US and EU’s traceability requirement. Waaree has stated this is a strategic investment for supporting the rapidly expanding US and global footprint.
The plant may be near commissioning and ramp-up to full capacity may happen in 1 year. We await more details from the management, but view this positively. Waaree also commissioned 5.1GW of module capacity in Gujarat in Q3FY26. We retain our estimates and reiterate BUY with a target price of ₹4,260.