Avaada Electro Files Updated Draft Papers for Rs.7,600 Crore IPO
Avaada Electro, a manufacturer of solar cells and panels, has submitted its revised draft red herring prospectus (UDRHP) to the Securities and Exchange Board of India (SEBI) to secure up to Rs 7,600 crore through an initial public offering (IPO).
The firm intends to generate Rs 1,600 crore through a new share issue, while promoter Avaada Ventures aims to offload shares valued at up to Rs 6,000 crore through an offer for sale (OFS), according to the UDRHP submitted on August 25.
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The firm might also explore gathering as much as Rs 320 crore via a pre-IPO placement before submitting the red herring prospectus. The pre-IPO placement will be included in the new issuance. Should the pre-IPO round occur, the size of the new issue will decrease by the funds generated from the placement.
Avaada Electro entered the capital markets by submitting its draft red herring prospectus (DRHP) using the confidential pre-filing method in October 2025. Following that, the company's IPO documents obtained approval from the capital markets authority SEBI in April 2026.
Avaada Electro asserts it ranks among the top 10 vertically integrated solar photovoltaic (PV) manufacturers in India, boasting an operational solar module manufacturing capacity of 8.50 GW. It similarly possesses 3.00 GW of active tunnel oxide passivated contact (TOPCon) solar cell production capacity, and an additional 3.00 GW of solar cell capacity is planned to be operational by the end of this current quarter, September 2026.
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Worldwide, solar developers are progressively utilizing TOPCon technology for solar cells due to its enhanced efficiency, reduced cost, and better performance in comparison to older methods like monocrystalline passivated emitter and rear cell (PERC). Conventional PERC technology achieves an efficiency ranging from 23.2 percent to 23.7 percent, reflecting the highest conversion of solar energy into electricity, whereas TOPCon technology can produce solar cells with a notably higher efficiency of up to 26 percent, as stated in the CRISIL Report.
The firm is building 5.10 GW of intended solar module capacity and 6.00 GW of solar cell capacity in Greater Noida, Uttar Pradesh. The facilities are anticipated to be operational in fiscal 2028. By the fiscal year 2028, Avaada Electro, a component of the energy transition conglomerate Avaada Group, plans to expand its solar module manufacturing capacity to 13.60 GW, solar cell capacity to 12.00 GW, and ingot and wafer capacity to 3.00 GW.
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The firm plans to use Rs 1,200 crore of the net proceeds from the new issue to settle debt, amid total outstanding liabilities of Rs 3,926.4 crore as of June 2026.
Borrowings rose substantially to support the growth of its production capabilities, along with further loan withdrawals. The remaining funds will be allocated for general corporate needs.
Avaada Electro, competing with various listed rivals such as Premier Energies, Waaree Energies, Vikram Solar, Websol Energy Systems, and Emmvee Photovoltaic Power, exhibited robust financial results in the fiscal year ending March 2026, with profits skyrocketing almost five times to Rs 888.7 crore compared to Rs 173.3 crore the year before. Revenue for that period skyrocketed almost six times to Rs 5,303.5 crore from Rs 911.6 crore. ICICI Securities, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets (India), SBI Capital Markets, and IIFL Capital Services have been chosen as the merchant bankers for the Avaada Electro IPO.