Upcoming IPO: Avaada Electro files confidential draft papers with SEBI to raise around Rs 10,000 crore via IPO

Avaada Electro IPO News

Solar panels maker Avaada Electro, the wholly owned subsidiary of Brookfield-backed Avaada Group, has filed Confidential Draft Red Herring Prospectus (DRHP) with the SEBI to raise funds via initial public offering (IPO). According to reports, the IPO size could be in the Rs 9,000-10,000 crore range.

If the IPO plans frutify, this would be the largest fund raising by solar PV modules manufacturer via IPO in India.

Given it is confidential filing, the details about the IPO are not available in the public domain but reports indicated that the IPO is likely to be a combination of fresh shares and an offer-for-sale by existing shareholders.

Generally, whenever the company opts for confidential IPO papers filing, the public issue details are not disclosed in the public. This confidential filing route is not similar to normal IPO filing where the DRHP is easily available through bankers, exchanges or the market regulator.

In confidential filing, after receiving obervations on the draft document from the SEBI, the company gets 18 months to go ahead with the filing of Updated DRHP with the SEBI and then RHP with the Registrar of Companies to float IPO, while in case of regular filing, the company can launch its IPO within the next one year after receiving observation from the regulator on its draft document.

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Reneable energy company Avaada Electro, the manufacturing subsidiary of Avaada Group, claims one of India’s leading producers of N-Type TOPCon solar PV (photo-voltaic) modules. It has an operational solar module production capacity of 8.5 GW and is expected to add another 5.1 GW capacity by fiscal 2027, taking the total capacity to 13.6 GW.

The company is likely to utilise fresh issue proceeds for the development of additional 5.1 GW solar module manufacturing facility in Uttar Pradesh as well as for scaling-up its capacity at Butibori plant in Maharashtra.

Avaada Electro is also set to add 12 GW of solar sell production capacity of which 6 GW is expected to be completed by current fiscal and another 6 GW by the end of next fiscal 2027.

Avaada Group claims one of India’s largest renewable power generators, and has expanded in solar PV manufacturing, green hydrogen & its derivatives like green ammonia, green methanol and sustainable aviation fuel and pumped hydro.

In the past, solar panels manufacturers like Waaree Energies, Premier Energies, and Vikram Solar raised funds through their IPOs and made successful debuts in the market.

Fiscal 2026 is projected to witness an additional 25-27 GW of solar projects with robust government backing and fuelled by environmental considerations, as per CRISIL report. Accordingly, between FY24-FY30, India’s per capita electricity consumption is expected to grow at a CAGR of between 2.5-3 percent, and over FY26-FY30, India’s solar capacity is expected to increase by 150 to 170 GW.

Several new age companies opted the confidential DRHP filing route including Swiggy, Meesho, Groww, boAt, Tata Play, PhonePe, Vishal Mega Mart, and Physicswallah in the past.