This solar cell maker has filed papers for ₹10,000cr IPO
What's the story
Avaada Electro, a solar module and cell manufacturer owned by the Avaada Group, has filed for an initial public offering (IPO) to raise ₹10,000 crore. The company is backed by Thailand's PTT Group and Brookfield. The funds raised from this IPO will be used for further expansion of its operations.
Filing details
Confidential filing done
The IPO filing has been made through a confidential route, a process introduced by the Securities and Exchange Board of India (SEBI) in November 2022. This was done to give companies, especially high-growth and new-age ones, more flexibility and privacy during the initial stages of their public offering process.
Expansion plans
Expansion plans
Avaada Electro currently has a module manufacturing capacity of 8.5GW, with another 5.1GW expected to be operational by FY27. The company also plans to enter the wafer and ingots business by FY28, further diversifying its operations in the solar components space. This expansion is part of a larger vision for energy security solutions within India's renewable energy sector.
Investment strategy
Previous funding and government MoU
In 2023, the Avaada Group raised a record $1.3 billion from Brookfield's Energy Transition Fund and Thailand's GPSC, a subsidiary of the PTT Group. The group also signed an MoU with the Gujarat government to invest ₹36,000 crore in solar, wind, and battery energy storage system (BESS) projects over five years.
Management team
IPO managers and market context
Avaada Electro has appointed Axis Bank, HSBC Holdings, ICICI Securities, and Bank of America to manage its upcoming IPO. The move comes as India's renewable energy and manufacturing sectors continue to attract major investments amid the government's push for 500GW of non-fossil capacity by 2030.