Waaree Energies Ltd. shares fell as much as 4.95% in intraday trade on Monday before recovering some losses to trade 3.3% lower, even after the company issued a clarification on reports surrounding a US Customs investigation into its exports.
The solar module maker said media reports had been "misread and overdone" and maintained that the issue does not pose a material risk to its business. It added that there has been no disruption to its U.S. operations, manufacturing, customer deliveries or commercial activities.
The clarification follows reports that US authorities were examining allegations that Waaree may have indirectly sourced Chinese-made solar cells before exporting finished products to the U.S. as India-made modules, potentially helping customers avoid higher tariffs on Chinese imports.
Waaree, however, said the core allegation has not been substantiated. According to the company, US Customs officials inspected its manufacturing facility in India and confirmed that no Chinese-origin solar cells were used in the shipments under review. It also stressed that the US authorities did not make any adverse findings against the company or declare it guilty of any wrongdoing.
The company further said the review relates only to a limited number of historical import shipments and does not cover its broader US business or overall export operations. It added that authorities have also not imposed charges across all imports, indicating that the scope of the matter remains narrow.
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