Avaada Electro Files for ₹10,000 Crore IPO to Boost Solar Manufacturing Capacity
Avaada Electro Private Limited, a solar manufacturing arm of Avaada Group, has filed a confidential DRHP with SEBI for an IPO valued between ₹9,000-10,000 crore. The IPO will include fresh share issues and an offer-for-sale. Proceeds will fund expansion projects, including a 5.1 GW integrated facility in Uttar Pradesh and capacity increase at the Butibori plant in Maharashtra. The company aims to increase its module manufacturing capacity from 8.5 GW to 13.6 GW and add 12 GW of cell manufacturing by FY 2025-26. Avaada Group has raised over $1.3 billion in 2023 and is backed by Brookfield Renewable Partners and Thailand's GPSC.
*this image is generated using AI for illustrative purposes only.
Avaada Electro Private Limited, 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 Red Herring Prospectus (DRHP) 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 Fundraising
The proposed IPO will comprise both fresh issue of shares and an offer-for-sale component. While the exact split between these components is not yet disclosed, the substantial size of the offering indicates the company's plans for expansion and growth.
Expansion Plans
Avaada Electro intends to utilize the IPO proceeds primarily for expanding its solar manufacturing capabilities. The company has outlined two key expansion projects:
- A new 5.1 GW integrated facility in Uttar Pradesh
- Capacity scale-up at its existing Butibori plant in Maharashtra
Current Operations and Future Capacity
Avaada Electro has established itself as one of India's largest solar PV module manufacturers. Here's a snapshot of its current operations and future plans:
| Aspect | Current Capacity | Planned Capacity (by FY 2025-26) |
|---|---|---|
| Module Manufacturing | 8.5 GW | 13.6 GW |
| Cell Manufacturing | Not specified | 12 GW |
| Butibori Facility | 7 GW (modules) | 7 GW (modules), 6 GW (cells) |
The company has demonstrated growth, increasing its operational capacity from 1.5 GW to 8.5 GW, representing a 5.7-fold increase.
Backing and Recent Funding
Avaada Group, the parent company of Avaada Electro, has financial backing:
- Raised over $1.3 billion in 2023
- Supported by Brookfield Renewable Partners
- Backed by Thailand's Global Power Synergy Public Company Limited (GPSC)
Market Impact
This IPO filing comes at a time when India is pushing for greater self-reliance in clean energy technologies. Avaada Electro's expansion plans align with the government's focus on boosting domestic solar manufacturing capabilities.
The size of the IPO also reflects investor interest in India's renewable energy sector, particularly in companies positioned to benefit from the country's solar power targets.
As Avaada Electro moves forward with its IPO plans, market observers will be watching how this capital raise impacts the competitive landscape of India's solar manufacturing industry and the broader renewable energy sector.
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