Deal factsCountry: India · Technology: Solar manufacturing · Stage: Financing · Size: 8.5 GW rising to 13.6 GW · Value: INR 7,600 crore IPO · Parties: Avaada Electro, SBI
Avaada Electro, the solar manufacturing arm of India’s Avaada group, has filed an updated draft red herring prospectus for an initial public offering worth INR 7,600 crore. The listing combines a fresh issue of INR 1,600 crore in equity shares with a face value of INR 5 each and an offer for sale of INR 6,000 crore by existing shareholder Avaada Ventures, making it one of the largest equity raisings proposed by an Indian solar equipment maker this year.
Most of the new money is earmarked for deleveraging. Avaada Electro intends to use INR 1,200 crore of the fresh issue to repay borrowings from the State Bank of India that funded the construction of its manufacturing facilities. The company currently operates 8.5 GW of module capacity, split between a 1.5 GW plant at Dadri in Uttar Pradesh and a 7 GW plant at Nagpur in Maharashtra, together with 3 GW of TOPCon cell capacity at Nagpur.
The expansion pipeline set out in the prospectus is substantial. A further 5.1 GW of module capacity is planned at Greater Noida in Uttar Pradesh, which would take the total to 13.6 GW. An additional 3 GW of TOPCon cell capacity at Nagpur is expected by the second quarter of the 2026-27 financial year, alongside 6 GW of cell capacity at Greater Noida and 3 GW of ingot and wafer capacity at Nagpur. That vertical integration matters as India’s ALMM List-II rules extend domestic content requirements to cells.
The filing also lays bare the company’s reliance on its sister developer. Sales to Avaada Energy Pvt Ltd accounted for 89.34% of revenue in the 2026 financial year and 99.74% in the previous year. Avaada Electro argues that the developer’s pipeline gives it a consistent order book, underpinned by pre-framework module supply agreements and a framework agreement between the two companies, though investors will weigh that captive demand against the concentration risk it implies.
Why does this matter?
India’s manufacturers are turning to public equity to fund the move from module assembly into cells, wafers and ingots that domestic content rules now reward. Avaada Electro’s filing shows how much capital that shift requires, and how closely manufacturing balance sheets remain tied to affiliated developers’ project pipelines.
What happens next?
The updated prospectus now sits with India’s securities regulator. If the offering proceeds, the fresh issue will cut the company’s SBI debt while the Greater Noida and Nagpur expansions move forward, with the next 3 GW of TOPCon cell capacity due by the second quarter of FY2026-27.
Sources: pv magazine India: Avaada Electro files updated DRHP for INR 7,600 crore IPO
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