Brookfield-Backed Avaada Seeks Funds for Solar Growth

Brookfield-backed Avaada Electro has submitted its updated draft red herring prospectus to the Securities and Exchange Board of India (Sebi), signaling its intent for a ₹7,600 crore initial public offering (IPO). The proposed offering is structured as a ₹1,600 crore fresh issue of equity shares, complemented by a ₹6,000 crore offer for sale (OFS) by its promoter, Avaada Ventures Pvt Ltd.

The capital raised from the fresh issue will primarily be directed towards prepaying or repaying lenders and meeting obligations under letters of credit, amounting to ₹1,200 crore, with the remainder allocated for general corporate purposes. Avaada Group, also supported by Global Power Synergy Company, the Asian Development Bank, and DEG, aims to significantly expand its solar manufacturing operations.

Currently, Avaada possesses 8.5 GW of operational solar module and 3 GW of solar cell manufacturing capacity. By fiscal year 2028, the company plans to enhance its solar module capacity to 13.6 GW, solar cell capacity to 12 GW, and introduce 3 GW of ingot and wafer capacity. The company is also venturing into energy storage solutions with 'Avaada Halo' and third-party EPC and O&M services.

Avaada is adopting advanced N-type TOPCon technology for its modules, designed for a 30-year lifespan and achieving efficiencies up to 23.61%. It is also co-locating ancillary unit production, including solar glass and frames, to optimize logistics and responsiveness.