According to the latest filing with SEBI, Avaada Electro Ltd. has filed its updated draft red herring prospectus (UDRHP-I) on August 25 to raise up to ₹7,600 crore through an initial public offering. The revised IPO comprises a fresh issue of equity shares worth up to ₹1,600 crore and an offer for sale of up to ₹6,000 crore by promoter-selling shareholder Avaada Ventures Pvt Ltd. The company may also consider raising up to ₹320 crore through a pre-IPO placement prior to filing the red herring prospectus, with the pre-IPO placement forming part of the fresh issue. The equity shares have a face value of ₹5 each, and if the pre-IPO round materialises, the quantum of the fresh issue will be reduced by the amount raised through the placement. The reduction represents a 24% decrease from the earlier upper end of ₹10,000 crore, with the adjustment coming after preliminary discussions with prospective investors regarding valuation and concentration risks. As per The Hindu BusinessLine, the proceeds from the fresh issue are proposed to be utilised to prepay or repay lenders and meet obligations under letters of credit amounting to ₹1,200 crore, with the balance proceeds for general corporate purposes. The offer for sale of up to ₹6,000 crore will be undertaken by Avaada Ventures Pvt Ltd, the promoter selling shareholder, according to the updated draft papers made public on Wednesday.
According to the updated filing, Avaada Electro currently operates 8.5 GW of solar module manufacturing capacity and 3 GW of tunnel oxide passivated contact (TOPCon) solar cell capacity as of July 31, 2026. The company plans to expand its solar module capacity to 13.6 GW, solar cell capacity to 12 GW, and ingot and wafer capacity to 3 GW by fiscal 2028. Its operational facilities include the Dadri facility in Uttar Pradesh with 1.5 GW annual module manufacturing capacity and the principal integrated facility in Nagpur, Maharashtra, with 7 GW operational module capacity and a 6 GW solar cell facility. The additional 3 GW of cell capacity is proposed to become operational in the quarter ending September 30, 2026. The company is also constructing 5.10 GW of planned solar module capacity and 6.00 GW of solar cell capacity in Greater Noida, Uttar Pradesh, with facilities expected to be commissioned in fiscal 2028. Additionally, Avaada Electro plans to introduce energy storage solutions under the brand "Avaada Halo" and enter the third-party engineering, procurement and construction (EPC) and operations and maintenance (O&M) segments. The company has adopted N-type TOPCon technology across its existing module manufacturing lines, and the modules are designed for a 30-year operating life. The bifacial glass-to-government's Production Linked Incentive scheme and is eligible for incentives of up to ₹961.62 crore, with the company holding a 3 GW allocation under the scheme. The bifacial glass-to-glass TOPCon modules have efficiencies of up to 23.61 per cent, with the N-type TOPCon modules having a bifaciality rate of approximately 80-85 per cent, compared with approximately 70-75 per cent for conventional passivated emitter and rear contact (PERC) modules.
According to the latest financial data, Avaada Electro's revenue from operations rose dramatically to ₹5,304 crore in fiscal 2026 from ₹912 crore in fiscal 2025, representing a nearly sixfold increase. EBITDA increased to ₹1,259 crore from ₹242 crore, while profit after tax grew to ₹889 crore from ₹173 crore. Avaada Energy, a group company subsidiary, served as an anchor customer and contributed 89% of revenue from operations in fiscal 2026. The company's total assets increased significantly to ₹6,470.92 crore in FY26 from ₹2,044.88 crore in FY25. The order book expanded significantly to 19,106 MW from 2,555 MW, representing more than seven-fold growth. Avaada Electro's installed module capacity increased to 8.5 GW from 1.5 GW in one year, with effective capacity rising to 6.05 GW from 0.76 GW and production increasing to 3.77 GW from 0.63 GW. The company competes with several listed peers including Premier Energies, Waaree Energies, Vikram Solar, Websol Energy Systems, and Emmvee Photovoltaic Power.
The company proposes to utilize ₹1,200 crore of net proceeds from the fresh issue to repay or prepay certain loans and meet obligations under letters of credit. As of June 30, 2026, Avaada Electro's outstanding borrowings stand at nearly ₹3,926 crore. The remaining proceeds will be used for general corporate purposes. Avaada Electro claims to be among the top 10 vertically integrated solar photovoltaic (PV) manufacturers in India, with its upcoming solar cell manufacturing lines entirely based on advanced N-type TOPCon technology to deliver higher power density and improved reliability. Incorporated in 2021, Avaada Electro, which is backed by the Avaada Group, manufactures solar cells and modules, which are marketed under the Enlume and Integlow brands. The company expects to receive benefits from listing including enhancement of its brand name amongst existing and potential customers and creation of a public market for its equity shares in India.
The Avaada Group is backed by global investors including Brookfield Renewable Partners, Global Power Synergy Company (GPSC) part of Thailand's PTT Group, the Asian Development Bank (ADB) and DEG. According to The Hindu BusinessLine, ICICI Securities Ltd, Axis Capital Ltd, BofA Securities India Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, SBI Capital Markets Ltd and IIFL Capital Services Ltd are the book-running lead managers to the issue. The company is in the process of co-locating ancillary units and components, such as solar glass, aluminium frames and encapsulants, adjacent to its manufacturing facilities, which is expected to lower logistics costs, reduce turnaround time and allow for greater responsiveness. The decision to downsize the IPO coincides with a broader moderation in India's primary market sentiment, with potential investors citing heavy revenue reliance on the group entity as a key factor in negotiating a lower valuation. "The IPO-bound entity derives almost all its revenue from another group subsidiary, which also has a lot of competitors. The IPO ask had to be adjusted a bit to reflect that concentration risk," explained one person familiar with the matter.
