Mumbai: Avaada Electro, the solar manufacturing arm of the Avaada Group, has filed a draft red herring prospectus (DRHP) with SEBI through the confidential filing route. The IPO is expected to raise between Rs 9,000 crore to Rs 10,000 crore. This major move is backed by global renewable energy investor Brookfield and aims to position Avaada Electro at the forefront of India’s solar manufacturing ecosystem.
The IPO is likely to consist of both a fresh issue of shares and an offer-for-sale (OFS) by existing shareholders. Avaada Electro’s decision to file confidentially means that full public details of the offering will be disclosed only later. Introduced by SEBI in November 2022, the confidential DRHP route allows greater flexibility in timing and execution. Unlike the regular DRHP route, where SEBI’s approval is valid for 12 months, the confidential filing approval remains valid for 18 months.
Funds to Boost Solar Cell and Module Capacity
The funds raised from the IPO will be used to expand Avaada Electro’s high-efficiency solar cell and module manufacturing capacities. This includes the development of an integrated facility of 5.1 GW in Uttar Pradesh and expansion at the Butibori plant in Maharashtra. Currently, the company operates 8.5 GW of solar module capacity across these two states and plans to scale this to 13.6 GW in module capacity and 12 GW in solar cell capacity over the next two fiscal years.
About Avaada Electro and Group Backing
Avaada Electro is a critical part of the Avaada Group, which is involved in diverse green sectors, including solar PV manufacturing, renewable power generation, green hydrogen and its derivatives, pumped hydro storage, battery storage, and green data centers.
In 2023, the group raised over USD 1.3 billion from Brookfield Renewable Partners and Thailand’s GPSC (a unit of PTT Group) to fund its expansion into green hydrogen, solar, battery storage, and green ammonia sectors. The upcoming IPO is seen as a major milestone in strengthening Avaada’s commitment to India’s renewable energy ambitions and boosting domestic manufacturing capabilities.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Investors should consult financial experts and review official documents before making any investment decisions.
