Avaada Electro Cuts IPO Size to ₹7,600 Crore in Updated DRHP

Solar cells and modules maker Avaada Electro has filed an updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI), revising the structure of its proposed initial public offering. The updated filing was made on August 25 and follows the company's earlier confidential pre-filing in October 2025.

The revised maximum IPO size of ₹7,600 crore is 24% lower than the earlier upper end of ₹10,000 crore. The company, however, has not provided an indication in the supplied information that the reduction represents a lower valuation.

What are the key details of the Avaada Electro IPO?

The revised IPO comprises:

• Fresh issue of shares: Up to ₹1,600 crore

• Offer for sale: Up to ₹6,000 crore by Avaada Ventures Pvt Ltd

• Potential pre-IPO placement: Up to ₹320 crore

If the pre-IPO placement is completed, the amount raised through the placement will form part of the fresh issue and the fresh issue size will be reduced accordingly.

The company had earlier indicated an IPO size of ₹9,000 crore - ₹ 10,000 crore. Its IPO papers received SEBI clearance in April 2026.

How will Avaada Electro use the IPO proceeds?

Avaada Electro plans to utilise ₹1,200 crore of the net proceeds from the fresh issue towards prepayment, repayment or payment obligations to lenders related to certain borrowings and acceptances under letters of credit.

The remaining proceeds will be used for general corporate purposes.

This marks a change from the company's October 2025 filing, when the fresh issue proceeds were proposed to fund capacity expansion in solar cell and module manufacturing, including a 5.1 GW facility in Uttar Pradesh and capacity additions at its Maharashtra plant.

What is Avaada Electro's manufacturing capacity?

Avaada Electro currently has 8.5 GW of operational solar module manufacturing capacity and 3 GW of operational TOPCon solar cell manufacturing capacity.

The company is also constructing 5.10 GW of solar module capacity and 6.00 GW of solar cell capacity in Greater Noida, Uttar Pradesh, with the facilities expected to be commissioned in fiscal 2028.

By fiscal 2028, the company aims to increase its manufacturing capacity to:

• Solar modules: 13.60 GW

• Solar cells: 12.00 GW

• Ingots and wafers: 3.00 GW

Another 3 GW of solar cell capacity is proposed to become operational in the quarter ending September 2026. The company also plans to introduce its Avaada Halo energy storage solution and enter third-party engineering, procurement and construction, as well as operations and maintenance, segments.

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Financial performance and order book

Avaada Electro reported a sharp improvement in financial performance in fiscal 2026. Revenue from operations increased to ₹5,303.52 crore from ₹911.62 crore in fiscal 2025, while EBITDA rose to ₹1,258.86 crore from ₹241.68 crore. Profit after tax increased to Rs 888.74 crore from ₹173 crore.

The company's installed module capacity increased to 8.5 GW from 1.5 GW, while effective capacity rose to 6.05 GW from 0.76 GW. Production increased to 3.77 GW from 0.63 GW, and its order book expanded to 19,106 MW from 2,555 MW.

Avaada Energy, a group company subsidiary, accounted for 89% of revenue from operations in fiscal 2026.

Conclusion: What does this mean for investors?

The updated DRHP reduces the proposed Avaada Electro IPO size while shifting the fresh issue's stated purpose towards debt repayment and general corporate purposes. Investors will need to track the final issue structure, pricing and the company's planned manufacturing capacity expansion as the IPO process progresses.