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

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 firm’s proposed IPO consists of a fresh issue of shares aggregating up to ₹1,600 crore and an offer for sale (OFS) of ₹6,000 crore. The equity shares with face value of ₹5 each. The proceeds from the fresh issue are proposed to prepay, repay and pay to 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 also backed by global investors including Global Power Synergy Company (GPSC, part of PTT Group Thailand), Asian Development Bank (ADB), DEG, among others. 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, UP 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 financial year 2028. It also plans to introduce an energy storage solution “Avaada Halo” and enter into third party EPC and O&M segments.  The company has adopted the 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 PERC modules.  Avaada Group is in the process of co-locating ancillaries 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 more responsive ICICI Securities Limited, Axis Capital Limited, BofA Securities India Limited, HSBC Securities and Capital Markets (India) Private Limited, SBI Capital Markets Limited and IIFL Capital Services Limited are the Book Running Lead Managers to the issue.