Waaree Renewable Technologies to Invest ₹1,225 Crore for Majority Stake in Power Transmission Firm
Waaree Renewable Technologies Ltd (WRT), the listed engineering, procurement and construction (EPC) arm of the Waaree Group, has announced a significant investment of ₹1,225 crore to acquire a majority stake in Associated Power Structures Ltd, a Vadodara-based power transmission towers manufacturer. According to a regulatory filing, the company expects to complete this strategic transaction by 30 April 2026.
Details of the Acquisition Deal
The acquisition involves WRT acquiring a 55% stake in Associated Power Structures Ltd through a combination of primary and secondary capital infusion. A person familiar with the deal revealed that approximately one-fourth of the total investment, around ₹306.25 crore, will be infused as primary capital into the company. The remaining amount will be utilized to acquire shares from existing shareholders, facilitating the majority stake acquisition.
Associated Power Structures Ltd specializes in EPC services for power transmission towers and substations, offering comprehensive design, manufacturing, and execution capabilities for transmission and substation projects up to 800 kV high-voltage DC lines. The company operates two manufacturing facilities in Vadodara with a combined production capacity of 108,000 metric tons per annum.
Strategic Expansion in Renewable Energy Value Chain
This acquisition represents a strategic move to enhance WRT's EPC capabilities, which primarily focus on developing solar power plants for clients. The transaction follows closely on Waaree Energies' recent acquisition of a 64% stake in transformers manufacturer Kotsons Pvt. Ltd through a primary capital infusion of approximately ₹192 crore. Both transactions were facilitated by mid-market M&A firm Singhi Advisors as financial advisor.
The Waaree Group has been actively pursuing diversification along the renewable energy value chain through strategic acquisitions, leveraging strong valuations and revenues generated in recent years amid global clean energy initiatives. Previous acquisitions include smart electricity meters manufacturer Racemosa Energy (India) Pvt. Ltd, solar inverters maker Ewaa Renewable Techno Solutions Pvt. Ltd, and solar cells manufacturer IndoSolar Ltd. The group also acquired Sangam Renewables Ltd in 2019, which was subsequently renamed Waaree Renewable Technologies.
Waaree's Growth Strategy and Financial Outlook
Waaree Energies has demonstrated remarkable growth over the past three years, scaling its manufacturing capacity to 22.8 gigawatts of annual module production and 5.4 GW of annual cell manufacturing capacity. The company is now utilizing cash flows from this core business to fund its acquisition strategy, diversifying into multiple segments including power transmission, distribution, grid connectivity, EPC services, batteries, inverters, transformers, and electrolysers.
The company has outlined an ambitious capital expenditure plan of ₹25,000 crore for future diversification initiatives. Analysts at Nuvama Institutional Equities noted in a January 22 research note that Waaree's backward and forward integration strategy will help de-risk earnings concentration. They emphasized that adjacent green businesses such as inverters, electrolyser facilities, green hydrogen production, and battery energy storage systems (BESS) capacity present substantial multi-decadal growth opportunities.
Market Performance and Investor Sentiment
On Friday, shares of Waaree Renewable Technologies closed 2.7% lower at ₹878.25 on the Bombay Stock Exchange (BSE). The stock has experienced a decline of nearly 10% since the beginning of 2026, compared to a 4.29% drop in the benchmark Sensex during the same period.
Waaree Energies shares also closed 1.6% lower at ₹2,597.8 on BSE, reflecting a loss of over 12% since the start of the year. Despite these recent market movements, the company's strategic acquisitions and diversification plans indicate a long-term vision for growth in the renewable energy sector.
