The proposed IPO includes a ₹16B fresh issue, with around ₹12B earmarked for debt repayment and letter-of-credit obligations.
Avaada Electro has moved closer to a stock market listing after filing its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI). The solar cell and module manufacturer is proposing an initial public offering of up to ₹76 billion.
The issue will comprise a fresh share sale of up to ₹16 billion and an offer for sale (OFS) of up to ₹60 billion by promoter Avaada Ventures Private Limited. Around ₹12 billion from the fresh issue is proposed to be used to repay borrowings and settle letter-of-credit obligations, with the remaining funds earmarked for general corporate purposes.
The IPO comes as India’s solar manufacturing industry faces pressure from changing domestic-content requirements, global trade disruptions and weak market conditions. Vikram Solar, one of the recent major solar manufacturers to list, has traded below its offer price amid challenges in scaling up cell manufacturing.
Avaada expands manufacturing capacity
Founded in 2021, Avaada Electro currently operates 8.5GW of solar module manufacturing capacity and 3GW of TOPCon cell capacity. It plans to build an integrated manufacturing chain covering ingots, wafers, cells and modules.
By FY28, the company is targeting 13.6GW of module capacity, 12GW of cell capacity and 3GW of ingot and wafer capacity. Its Nagpur facility has 7GW of module capacity and a 6GW cell manufacturing facility, while its Dadri plant in Uttar Pradesh has 1.5GW of module capacity.
The company is betting on N-type TOPCon technology and has introduced modules rated up to 720 Wp. Its FY26 revenue rose to ₹53.03 billion from ₹9.12 billion, while profit after tax increased to ₹8.89 billion from ₹1.73 billion.
Avaada Electro also holds a PLI award for 3GW of integrated wafer-to-module capacity, potentially providing incentives of up to ₹9.62 billion.
As it approaches the IPO, the company’s ability to commission planned capacity, execute its 19,106MW order book and reduce debt will remain key factors for investors amid challenging valuations for solar manufacturers.
