Waaree Energies Stock Jumps 11% After Board Approves Project Relocation

The shares of Waaree Energies Ltd surged 11% on Friday, closing above ₹3,000 after opening at ₹2,672. The sharp rise came after the company announced a significant restructuring of its flagship solar manufacturing project during a board meeting held earlier in the day. Investors reacted positively to the news, viewing the changes as a proactive move to maintain project momentum and ensure timely execution.

Board Approves Change in Project Location

In a regulatory filing with both the BSE and NSE, Waaree Energies confirmed that its Board of Directors, acting on the recommendation of its Audit Committee, has approved a change in the location plan for its 6 GW integrated solar manufacturing facility. This facility, originally described in the company’s IPO prospectus dated October 23, 2024, had been delayed at its initial proposed site.

To address the delays and ensure efficient use of IPO proceeds, the company will now implement the project across multiple locations. The new configuration includes 3 GW of module manufacturing at Samakhiali in Gujarat, another 3 GW at a location yet to be finalized in Gujarat, Tamil Nadu, or another state, 6 GW of solar cell manufacturing at Unn, Gujarat, and 6 GW of ingot and wafer production at Nagpur, Maharashtra.

The restructuring is intended to accelerate execution timelines while leveraging logistical and infrastructure advantages available in each region.

Capital Expenditure Realigned Without Budget Increase

Despite the geographic overhaul, the company has maintained the overall capital expenditure at nearly the same level as originally planned. The revised capex stands at ₹90,495.87 million, marginally lower than the original figure of ₹90,499.59 million.

There are, however, significant reallocations within the budget. Land costs have risen sharply from ₹1,385.80 million to ₹4,618.00 million, and civil works expenditure has increased from ₹10,856.06 million to ₹14,616.37 million, reflecting the expanded scope across multiple sites. Conversely, machinery and equipment costs have been reduced from ₹44,228.34 million to ₹36,795.30 million, possibly due to procurement efficiencies or phased deployments.

The contingency allocation has been notably increased from ₹751.11 million to ₹4,690.59 million, indicating the company’s caution in managing multi-location execution risks. Utility, freight, IT infrastructure, and miscellaneous costs were also adjusted to reflect the new project scope.

Regulatory Compliance and Shareholder Approval

Waaree confirmed that the changes comply with Sections 13(8) and 27 of the Companies Act, 2013, and relevant SEBI regulations including Listing Obligations and Disclosure Requirements (LODR) and the Issue of Capital and Disclosure Requirements (ICDR) guidelines.

The new project structure is subject to shareholder approval through a special resolution to be passed via postal ballot. The board meeting that finalized the decision was held on June 20, 2025, and concluded at 1:30 PM. The company has made the details publicly available on its website.

Market Reaction and Strategic Implications

The sharp rise in Waaree’s share price reflects investor confidence in the company’s decision to proactively address project challenges. By maintaining its overall investment plan and demonstrating flexibility in execution, Waaree has reassured stakeholders about the viability and pace of its growth strategy.

Analysts view the revised plan as a practical step toward reducing regulatory and operational risks. Distributing the project across different states could help the company tap into local incentives, improve supply chain logistics, and strengthen its manufacturing footprint in line with India’s clean energy goals.

With India pushing to expand domestic solar capacity under its renewable energy targets, Waaree’s strategic pivot positions it to benefit from continued sector momentum.

Read More: Electrical Equipment Stock Hits Upper Circuit After 228% Jump in Q4 Profit