Avana Electrosystems IPO: ₹20.15 Crore Issue Opens Jan 12 for Power Equipment Maker
Avana Electrosystems, a Bengaluru-based manufacturer of customized Control and Relay Panels for power systems, is launching its ₹20.15 crore IPO from January 12-14, 2026. The company has demonstrated exceptional growth with revenue expanding at 47.44% CAGR and PAT margins improving from 3.22% to 13.21% over FY2023-25. IPO proceeds will fund an integrated manufacturing unit (₹11.55 crores) and working capital requirements (₹8.60 crores) to support the company's expansion in India's growing power infrastructure sector.
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Avana Electrosystems Limited, a specialized manufacturer of customized Control and Relay Panels for power systems, is launching its Initial Public Offering (IPO) worth ₹20.15 crores. The issue opens on January 12, 2026, and closes on January 14, 2026, with listing scheduled for January 19, 2026, marking the company's entry into public markets after demonstrating exceptional financial growth.
Strong Financial Performance Drives IPO Launch
The Bengaluru-based company has delivered impressive financial results over the past three years, establishing a strong foundation for its public market debut. Revenue expanded significantly from ₹28.41 crores in FY2023 to ₹61.49 crores in FY2025, achieving a compound annual growth rate of 47.44%.
| Financial Metric: | FY2023 | FY2024 | FY2025 | Growth (FY25) |
|---|---|---|---|---|
| Revenue from Operations: | ₹28.41 cr | ₹52.99 cr | ₹61.49 cr | +16.0% |
| Total Revenue: | ₹28.59 cr | ₹53.26 cr | ₹62.93 cr | +18.2% |
| Profit After Tax: | ₹0.92 cr | ₹4.02 cr | ₹8.31 cr | +106.7% |
| PAT Margin: | 3.22% | 7.55% | 13.21% | +570 bps |
The company's profitability transformation stands out, with PAT margins expanding from 3.22% in FY2023 to 13.21% in FY2025, while profit before tax margins improved from 4.09% to 19.54% over the same period.
Manufacturing Capabilities and Market Position
Incorporated in 2010, Avana Electrosystems operates from two manufacturing units in Bengaluru, Karnataka, specializing in customized Control and Relay Panels ranging from 11kV to 220kV for Power System Monitoring, Control and Protection Applications. The company also manufactures Protection Relays for both indoor and outdoor usage.
| Operational Parameter: | Details |
|---|---|
| Annual Relay Capacity: | 70,000 units |
| Annual Control Panel Capacity: | 600 units |
| Customer Base (FY2025): | 367 customers |
| Capacity Utilization (Sep 2025): | 48.07% for relays |
| R&D Investment (FY2025): | ₹33.53 lakhs |
The company serves governmental power utilities and private sector energy producers across India, with recent expansion into export markets including Kuwait. Management includes Managing Director Anantharamaiah Panish, CEO Gururaj Dambal, COO S Vinod Kumar, and CFO K N Sreenath.
Strategic Use of IPO Proceeds
The ₹20.15 crore fresh issue will be strategically allocated to support the company's growth initiatives. The largest portion, ₹11.55 crores, will fund capital expenditure for establishing an integrated manufacturing unit, including civil construction, internal electric work, and plumbing to consolidate operations and enhance production capacity.
| Use of Proceeds: | Amount | Purpose |
|---|---|---|
| Integrated Manufacturing Unit: | ₹11.55 crores | Civil construction, equipment setup |
| Working Capital Requirements: | ₹8.60 crores | Raw materials, operations |
| General Corporate Purposes: | Balance amount | Business development, expenses |
Working capital requirements will receive ₹8.60 crores to support procurement of raw materials including sheet metal, switchgear components, and cables, along with manufacturing, assembly, and testing operations.
Competitive Strengths and Growth Drivers
Avana Electrosystems has built several competitive advantages in the specialized power equipment sector. The company maintains relationships with 367 customers as of FY2025, with repeat customers generating ₹43.81 crores in revenue, demonstrating strong customer loyalty and service quality.
| Strength Category: | Details |
|---|---|
| Quality Certifications: | ISO 9001:2015, NABL accredited labs |
| R&D Team: | 9 engineers with specialized expertise |
| Management Experience: | 20+ years each, MD with 32 years |
| Product Range: | 11kV to 220kV custom solutions |
The company's growth is supported by India's expanding power infrastructure, government initiatives in renewable energy, and grid modernization programs. Recent export expansion to Kuwait indicates potential for international market penetration.
Risk Assessment for Investors
Despite strong financial performance, potential investors should consider several concentration risks. Customer concentration shows the top 5 customers accounting for 38.79% of total revenue, while the top 10 customers represent 52.00% of revenue as of September 2025.
| Risk Factor: | Impact Level |
|---|---|
| Customer Concentration: | Top 5 customers: 38.79% revenue |
| Geographic Concentration: | 48.33% from 3 states |
| Supplier Concentration: | Top 5 suppliers: 43.40% purchases |
| KIADB Land Lease: | Must start production by May 22, 2026 |
A critical regulatory risk involves the company's KIADB land lease, which requires commencement of commercial production by May 22, 2026, or faces potential lease cancellation. The company also operates entirely from leased facilities without ownership of critical manufacturing premises.
Investment Outlook and Market Opportunity
Avana Electrosystems presents an attractive investment opportunity in India's growing power infrastructure sector, backed by strong financial performance and established market position. The company's revenue growth trajectory, improving profitability margins, and expansion into export markets demonstrate operational strength and market demand for specialized power equipment.
The IPO appeals to investors seeking exposure to power infrastructure growth with tolerance for mid-cap manufacturing sector dynamics. Success of the planned integrated manufacturing facility and meeting regulatory compliance deadlines will be crucial factors for future performance. With India's continued focus on power sector modernization and renewable energy integration, the company is well-positioned to capitalize on infrastructure spending trends.
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