WAA Solar is a solar power company that went public with an IPO on May 31, 2018. The company has several existing solar power projects totaling over 10 MW and investments in subsidiaries with additional solar capacity. Proceeds from the IPO will be used for investing in subsidiaries and general corporate purposes. Key financial details highlighted include total revenue growing at a CAGR of 17.24% over 5 years, and a price to book ratio of 0.73 at the IPO price. While the company generates positive cash flow, there are also reasons for caution such as limited revenue growth history and potentially aggressive pricing of the IPO shares.

1. WAA Solar
Private Limited

2. Introduction
• Incorporated on November 9, 2009 as per provisions of
Companies Act, 1956.
• Waa Solar Ltd. (WSL) is engaged in solar power
projects.
• The current market capitalisation stands at Rs 18.61
crore.
• Lead Managers- GUINESS CORPORATE ADVISORS
PRIVATE LIMITED

3. Company Business
1. Solar Projects
(a)The Company has 10.25 MW Power Plant installed at
Surendranagar.
(b)The Company has 100 KW Power Plant installed at Raja Bhoj,
Bhopal Airport.
2. Investment
(a)The Company has 66.69% of stakes in Madhav Solar(Karnataka)
Private Limited having 10MW Capacity Power Plant.
(b)The Company has 99.99% of stakes in Madhav Private Limited
(MSPL) having 4MW Capacity Power Plant.
(c)The Company has 51.1% stakes in Madhav Solar(Vadodra Rooftop)
Private Limited(MSVRPL) having 4MW Capacity plant.
3. Lease Income

4. Objectives of WSL IPO
• The Offer for Sale The Company will not receive any
proceeds from the Offer for Sale.
• Fresh Issue
1. Investment in Subsidiary Companies
2. General Corporate Purpose,
3. Meeting Public Issue Expenses.

5. WSL IPO Details
Open Date: May 31 2018
Close Date: Jun 04 2018
Total Shares: 20,00,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue IPO
Issue Size: 32.2 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 161 Per Equity Share
Listing At: BSE SME
Listing Date: Jun 12 2018

6. WSL IPO Stock Quote &
Charts
Source: investorzone.in

7. Capital Structure
(i) Authorized Share Capital 70,00,000 shares at FV@10) 7 Cr
(ii) Issued, Subscribed,& Paid-up Share Capital Before
Issue (48,83,382Shares at FV@10)
4.883 Cr
(iii) Present Issue ( 20,00,000 Shares at FV@10) 2Cr
(iv) Fresh Issue of 17,50,000 Shares 1.75 Cr
(v) OFS of 2,50,000 Shares .25 Cr
(vi) Reservation for Market Maker ( 1,04,000 Shares at
FV@10)
10.4 Lacs
(vii) Net Issue to Public (20,00,000-1,04,000= 18,96,000
Shares)
1.896 Cr
(viii) QIB & HNI quota-9,48,000 50%
(ix) Retail Quota - 9,48,000 50%
(x) Paid Up Share Capital after the issue 6.883 Cr

8. Basis for offer price
• Qualitative factors
 Proven and experienced management team.
 Investment in Subsidiary and associate companies.
 Cost Efficient sourcing and completion of project in
schedule time.
 Companies business model.
 The business strategy such as optimal utilization of
resources, Diversification and expansion, competitive
strength etc.

9. Basis for offer price(Cont’d)
• Quantitative Factors
 Comparison with other listed companies.
 Net assets value per equity share.
 Return on Net Worth(consolidated and standalone).
 Earning per share in relation of issue price.

10. Financials of WSL
1. Assets and Liabilities Key Parameters
Year Asset(Lacs)
Liabilities
(Lacs)
Net
Worth
(Lacs)
Book
Value
D/E RONW
Receiveable
days
FY13 17,261.41
10,788.4
3
6,472.
98
3407 1.7 13%
FY14 28,030.46
21,019.1
3
7,011.
33
3690 3.0 8% 33
FY15 44,681.33
36,535.2
6
8,146.
07
4287 4.5 14% 25
FY16 29,817.22
18,914.7
5
10,90
2.47
5738 1.7 6% 11
FY17 29,936.80
18,546.6
2
11,39
0.18
5995 1.6 4% 11
8MFY
18
30,986.56
19,363.0
0
11,62
3.56
6118 1.7 2% 25
Post
Issue
14441
.06
218 1.3

11. Financials (Cont’d)
2. Profit n Loss Key Parameter
(i) The Revenue of the company in last 5 years ( FY13to
8MFY18) is 27.73Cr, 33.30Cr, 66.57 Cr, 64.84 Cr, 52.39 Cr
and 33.34 Cr respectively. The Company is growing at a
CAGR of 17.24 %.
(ii) The PAT of the company in last 5 years ( FY13 to 8MFY18)
is 8.28 Cr, 5.38 Cr, 11.35 Cr, 6.02 Cr, 4.88 Cr and 2.33 Cr
respectively. The Company has inconsistency in PAT growth
in last 5 years.
(iii) P/B(post issue)= .73 (at cutoff price of 161)
(iv) Annualized EPS(post issue)= 5.26
(v) Annualized P/E(post issue)= 30 at the cutoff price of 161

12. Financials (Cont’d)
3. Cash Flow Statement(all figures in Lacs)
Particulars FY17 FY16 FY15 FY14 FY13
(i) Net Cash
Generated from
Operation
3,963.47 5,237.60 4,749.29 3,744.27 1,297.57
(ii) Net Cash
Generated from
Investment
-1,508.59 9811.61
-
19,444.33
-6,607.23
-
1,817.22
(iii) Net Cash
Generated from
Financing Activity
-2,431.22 -15,075.30 12443.87 5,435.17 540.38
(iv) Total[
(i)+(ii)+(iii) ]
23.66 -26.09 -2,251.17 2,572.21 20.73

13. Ratio Analysis
• Current Ratio
Mar 18 Mar 17 Mar 16
Current Ratio
2.42 0.78 0.81
Mar 18 Mar 17 Mar 16
Quick Ratio
2.35 0.72 0.74
• Quick Ratio

14. Ratio Analysis (Cont’d)
• Return on Capital Employed
Mar 18 Mar 17 Mar 16
ROC
6.88% 7.64% 3.45%
Mar 18 Mar 17 Mar 16
Net Profit Ratio
11.16% 0.59% 13.77%
• Net Profit Ratio

15. Ratio Analysis (Cont’d)
• Return on Assets
Mar 18 Mar 17 Mar 16
ROA
1.28% 0.09% 3.20%
Mar 18 Mar 17 Mar 16
EPS (Rs.)
50.15 7.30 233.68
• Earning per share Ratio

16. Ratio Analysis (Cont’d)
• Price Earning Ratio- ratio for valuing a company that
measures its current share price relative to its per-share
earnings (EPS). It denotes what the market is willing to
pay for a company's earnings.
P/E ratio = market value per share / earnings per share
= 4.97
A high P/E ratio indicates that investors expect higher
earnings.

17. Conclusion
• Reasons to invest in this IPO
WAA Solar Limited because the company is generating
positive cash flows from operations which is big positive for
the companies likes Waa Solar which requires intensive
capital for an installment of solar power plants.
• Reasons not to invest in this IPO
There is not much growth in revenues in the last 5 years.
Its revenues in FY2013 Vs FY2017 are almost same.
The issue appears aggressively priced

18. Thank You!
•