Avaada Electro Eyes ₹10,000 Crore IPO to Boost Solar Manufacturing Capacity
Avaada Electro, a solar manufacturing subsidiary of Avaada Group, has filed a confidential draft prospectus with SEBI for an IPO valued between ₹9,000-10,000 crore. The IPO includes fresh share issuance and an offer-for-sale component. Funds will be used to expand solar cell and module manufacturing capacity, establish a 5.1 GW integrated facility in Uttar Pradesh, and scale up operations in Maharashtra. The company plans to increase its solar module capacity from 8.50 GW to 13.60 GW and add 12.00 GW of solar cell capacity in the next two fiscal years.
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Avaada Electro, the solar manufacturing arm of the Brookfield-backed Avaada Group, has taken a significant step towards going public. The company has filed a confidential draft prospectus with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO) valued between ₹9,000 crore and ₹10,000 crore.
IPO Structure and Objectives
The proposed IPO is structured to include both fresh issue of shares and an offer-for-sale component. The primary objectives of this public offering are:
- Fund capacity expansion in solar cell and module manufacturing
- Establish a 5.1 GW integrated facility in Uttar Pradesh
- Scale up operations at the Butibori plant in Maharashtra
Current Capacity and Expansion Plans
Avaada Electro has positioned itself as one of India's largest solar PV module manufacturers by operational capacity. Here's a breakdown of the company's current capacity and future plans:
| Metric | Current Capacity | Planned Capacity (Next 2 Fiscal Years) |
|---|---|---|
| Solar Module Capacity | 8.50 GW | 13.60 GW |
| Solar Cell Capacity | Not specified | 12.00 GW |
Parent Company's Recent Funding
The parent company, Avaada Group, has shown strong financial backing, having raised over $1.3 billion in 2023. This funding was aimed at expansion across various renewable energy verticals, indicating a robust growth strategy for the group as a whole.
Market Implications
This move by Avaada Electro comes at a time when India is pushing for greater self-reliance in renewable energy equipment manufacturing. The substantial size of the proposed IPO suggests confidence in the growth potential of the solar manufacturing sector in India.
As the renewable energy landscape continues to evolve, Avaada Electro's public offering could be a significant development for investors interested in the green energy sector. However, potential investors should conduct thorough due diligence and consider market conditions before making any investment decisions.
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