Solar panel maker Avaada Electro files updated DRHP for ₹7,600 crore IPO

The Brookfield-backed company plans a ₹1,600 crore fresh issue and a ₹6,000 crore offer for sale as it expands solar module and cell manufacturing capacity in India

Brookfield-backed Avaada Group’s solar manufacturing arm, Avaada Electro, has filed its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (Sebi) for its ₹7,600 crore initial public offering (IPO).

 

The company’s proposed IPO consists of a fresh issue of equity shares aggregating up to ₹1,600 crore and an offer for sale (OFS) of ₹6,000 crore. The equity shares have a face value of ₹5 each. The OFS of up to ₹6,000 crore will be undertaken by Avaada Ventures Pvt Ltd, the promoter selling shareholder, according to the updated draft papers made public on Wednesday.

 

The proceeds from the fresh issue are proposed to be utilised to prepay or repay lenders and meet obligations under letters of credit amounting to ₹1,200 crore. The balance proceeds will be used for general corporate purposes.

 

In addition to Brookfield, Avaada Group is backed by global investors, including Global Power Synergy Company (GPSC), part of Thailand’s PTT Group, the Asian Development Bank (ADB) and DEG.

 

The company currently has 8.5 GW of operational solar module manufacturing capacity and 3 GW of operational tunnel oxide passivated contact (TOPCon) solar cell manufacturing capacity across its two facilities in Dadri, Uttar Pradesh, and Nagpur, Maharashtra. It expects to increase solar module capacity to 13.6 GW, solar cell capacity to 12 GW, and ingot and wafer capacity to 3 GW by FY28.

 

It also plans to introduce an energy storage solution, “Avaada Halo”, and enter the third-party engineering, procurement and construction (EPC) and operations and maintenance (O&M) segments.

 

The company has adopted N-type TOPCon technology across its existing module manufacturing lines, and the modules are designed for a 30-year operating life.

 

Additionally, its bifacial glass-to-glass TOPCon modules have efficiencies of up to 23.61 per cent. The N-type TOPCon modules have a bifaciality rate of approximately 80-85 per cent, compared with approximately 70-75 per cent for conventional passivated emitter and rear contact (PERC) modules.

 

Avaada Group is in the process of co-locating ancillary units and components, such as solar glass, aluminium frames and encapsulants, adjacent to its manufacturing facilities, which is expected to lower logistics costs, reduce turnaround time and allow for greater responsiveness.

 

ICICI Securities Ltd, Axis Capital Ltd, BofA Securities India Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, SBI Capital Markets Ltd and IIFL Capital Services Ltd are the book-running lead managers to the issue.