Solar module manufacturer Avaada Electro has filed its updated draft red herring prospectus with the Securities and Exchange Board of India (SEBI). The company had first filed its DRHP via the confidential pre-filing route with the market regulator last year in October and received the nod for its initial public offering worth Rs 7,600 crore this year in April.
The Mumbai-based firm may also consider a pre-iplo placement of Rs 320 crore; if undertaken, the amount will be reduced from the fresh issue.
Avaada Electro IPO: Issue Size and Lead Managers
The Avaado Electro IPO is a book-built issue of Rs 7,600 crore, comprising an offer-for-sale component of Rs 6,000 crore, which will be offloaded by its promoter group, Avaada Ventures Private.
The remaining Rs 1,600 crore will be raised via the issuance of fresh equity shares of face value Rs 5 each.
The IPO will be handled by ICICI Securities, Axis Capital, BofA Securities India, HSBC Securities and Capital Markets (India), SBI Capital Markets, and IIFL Capital Securities, while MUFG Intime India is the registrar to the issue.
Avaada Electro IPO: Utilization of proceeds
Of the total Rs 1,600 crore fresh proceeds, the company expects to deploy Rs 1,200 crore towards fulfilling its debt obligations by FY27, while the remaining amount shall be used for general corporate purposes.
As of June 30, 2026, Avaada Electro’s outstanding borrowings stand at nearly Rs 3,926 crore.
The company will not receive any proceeds from the OFS component.
Avaada Electro IPO: Risk factor to monitor
The company’s high dependence on Avaada Group, especially on Avaada Energy Private, poses a risk factor to its financial operations, as during FY23 the company had no employees and started generating revenue in FY25, with limited operating capacity.
Loans availed from the promoter group AVPL at high interest rates and fluctuations in the business of Avaada Group may also severely affect the company’s operations.
Additionally, risks from related party transactions increase in the debt-to-equity ratio and net debt-to-equity ratio, and the possibility of managerial shift may also hamper the company’s financial conditions.
Avaada Electro IPO: FY26 financial performance
For FY26, its profit after tax was posted at Rs 888.74 crore, up sharply from Rs 173 crore reported in FY25. Its revenue from operations during the same period stood at Rs 5,303 crore, rising from Rs 911 crore reported at the same time last year.
Avaada Electro IPO: About the company
Backed by Avaada Group, Avaada Electro functions in the renewable energy sector and specializes in the production of solar cells and modules. The company has two operational manufacturing facilities, one at Dadri, Uttar Pradesh, and the second one at Nagpur, Maharashtra.