Avaada Electro Files Confidential DRHP with SEBI for ₹9,000–10,000 Crore IPO

Avaada Electro, the solar module manufacturing arm of the Brookfield-backed Avaada Group, has filed a Confidential Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). 

Reports indicate the company aims to raise between INR 9,000 crore and INR 10,000 crore, making it potentially the largest IPO by a solar PV module manufacturer in India.

Confidential Filing: A Growing Corporate Trend

Avaada Electro has opted for a confidential filing route, which allows companies to submit draft IPO documents without immediately disclosing details to the public. Under this format, issuers can receive SEBI’s feedback privately and have 18 months to move forward with the Updated DRHP and Red Herring Prospectus (RHP) filings.

In contrast, a regular IPO filing process provides companies only one year to proceed after receiving SEBI’s observations and makes draft documents publicly accessible through regulators, bankers, and exchanges.

The Avaada Electro issue is expected to be a mix of fresh equity shares and an offer-for-sale (OFS) by existing shareholders.

Expansion of Manufacturing Capacity

Avaada Electro is among India’s leading producers of N-Type TOPCon solar PV modules. The company currently operates an 8.5 GW solar module production capacity and plans to add 5.1 GW by fiscal 2027, which will take its total capacity to 13.6 GW.

The proceeds from the IPO are likely to be used to develop a 5.1 GW solar module manufacturing facility in Uttar Pradesh and to expand the Butibori plant in Maharashtra. 

Additionally, Avaada Electro is investing in solar cell manufacturing, targeting 12 GW of capacity. About 6 GW of this is expected to be completed by the end of this fiscal year and the remainder by fiscal 2027.

Market Context and Industry Outlook

The IPO comes at a time when India’s renewable energy sector is experiencing significant investment momentum. 

Total investment in the sector reached USD 9.84 billion in Q1 2025, a 7.7-fold increase compared to USD 1.279 billion in Q1 2024, as per the government data. This is one of the highest investments in the past few years.

Avaada Electro’s confidential DRHP filing aligns it with a list of leading Indian startups and private companies, such as Swiggy, Meesho, Groww, boAt, Tata Play, PhonePe, Vishal Mega Mart, and PhysicsWallah, that have chosen this route.