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Updated: July 16, 2025 20:31
Waaree Energies Ltd has officially declared that its proposed acquisition of Kamath Transformers Private Ltd, a ₹293 crore deal, will not go ahead as planned. The action is a strategic u-turn from its earlier plans for expansion to develop its energy infrastructure business.
Background: A Promising Partnership That Failed to Materialize
In May 2025, Waaree's board had approved the buyout of Kamath Transformers, a veteran electrical transformer maker. The buyout was to:
- Add critical transmission infrastructure to Waaree's renewable power system
- Ride on Kamath's strong fundamentals of FY24 revenue of ₹122.68 crore and net profit of ₹15.65 crore
- Spearhead Waaree's vertical growth in solar and power transmission businesses.
Current Status: Deal Ended
Spurred by board approval and public announcements, the takeover has now been put on hold. The main points are:
- There was no cash or equity exchange.
- Non-consummation reasons are not disclosed, though market speculation aims at valuation mismatches or strategic readjustment
- Waaree will continue to look at other inorganic growth alternatives in the energy space
Impact and Outlook: Strategic Recalibration
The cancellation is unlikely to affect Waaree's long-term growth trajectory. The company remains committed to:
- Expanding its solar module production capacity to over 13 GW - Broadening its Independent Power Producer (IPP) portfolio through subsidiaries like Waaree Forever Energies - Forming joint ventures and acquisitions that are more suitable to its evolving business model.
Sources: Finance Saathi, Economic Times, Angel One, VCCircle, Projx News