MC EXCLUSIVE Brookfield-backed Avaada plans Rs 4,000-cr IPO for solar module manufacturing arm

Avaada Group’s presence in the clean energy sector spans areas such as solar module manufacturing, renewable power generation, and green hydrogen and ammonia.

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26 Aug, 2025 12:21

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Avaada Group, a renewable energy focused firm founded by Vineet Mittal, former co-founder of Welspun Energy, has begun preparations for a Rs 4,000-5,000 crore initial public offering (IPO) of the group’s solar module manufacturing unit, according to sources aware of the development.

The group has reached out to several investment banks and law firms to pitch for the mandate to manage the IPO of the solar module arm, said the sources cited.

Most of the funds proposed to be raised from the initial share sale are likely to be used to fund the group’s capex plans, which includes setting up a 5 gigawatt (GW) integrated solar module and cell manufacturing facility in the state of Uttar Pradesh, the people cited above said. However, they cautioned that since the deal is in very early stages, the plans are likely to evolve going ahead.

Avaada’s plan to tap the Indian public markets to raise funds for its growth follows other solar panel makers that have raised funds through IPO in 2024 or have already filed the draft papers for their IPOs.

In 2024, the Indian stock markets saw two highly subscribed IPOs from domestic solar panel makers. In September, Hyderabad-based solar module and cell maker Premier Energies raised Rs 2,830 crore through its IPO while in October, Waaree Energies, the biggest domestic player in this field, raised Rs 4,321 crore.

These IPOs were driven by variety of reasons such as government’s push for domestic manufacturing in the solar value chain through initiatives like the production linked incentive (PLI) scheme as well as mandates for use of domestic equipment in renewable power generation; India’s ambitious clean energy target of 500 GW of installed capacity by 2030 and shifting of global supply chains due to geopolitical tensions between the US and China.

Also Read: Waaree Energies says dual manufacturing footprint offers 'natural hedge' amid US tariff uncertainty.

Following the two IPOs in 2024, several other companies too have filed their draft papers with the market regulator, hoping to raise funds for expansion through an IPO.

Kolkata-based Vikram Solar aims to raise Rs 1,500 crore through its public markers debut, Delhi-based Saatvik Green Energy plans to raise Rs 1,150 crore, while Fujiyama Power Systems and PMEA Solar Tech Solutions plan to raise fresh capital of around Rs 700 crore and Rs 600 crore, respectively.

Avaada expansion plans

The group’s presence in the clean energy sector spans areas such as solar module manufacturing, renewable power generation, and green hydrogen and ammonia.

In March, it inaugurated a 1.5 GW solar module gigafactory in Dadri, Uttar Pradesh, and laid the foundation for a 5 GW integrated manufacturing facility in Greater Noida. Currently, the company is manufacturing 5,800 solar modules per day.

In April, Avaada signed an MoU with the Government of Maharashtra to develop 3,650 MW of pumped hydro storage capacity through two projects—Pawana Falyan (2,400 MW) and Sirsala (1,200 MW)—entailing a total investment of ₹15,100 crore.

It has also signed a Memorandum of Understanding (MoU) with the Madhya Pradesh government committing an investment of ₹50,000 crore, which includes the development of 6,000 MW of solar energy, 700 MW of wind energy, 2,100 MW of Battery Energy Storage Systems (BESS), and 2,000 MW of pumped storage projects.

On the green ammonia front, Avaada recently announced a strategic collaboration with Casale, a global pioneer in ammonia technology, to develop a 1,500 tons per day (TPD) green ammonia plant in Gopalpur, Odisha.

Avaada’s expansion plans have been backed by a $1.3 billion investment in 2023 from Brookfield’s Energy Transition Fund and Thailand’s GPSC, a subsidiary of the PTT Group.

An email sent to Avaada group did not elicit a response till the time of publication.