Avaada Electro Ltd has cut the size of its proposed initial public offering to Rs 7,600 crore in an updated draft filing with the Securities and Exchange Board of India, compared with the Rs 9,000 crore to Rs 10,000 crore IPO indicated in its earlier filing in October 2025.
The revised IPO comprises a fresh issue of shares worth up to Rs 1,600 crore and an offer for sale of up to Rs 6,000 crore by promoter-selling shareholder Avaada Ventures Pvt Ltd.
The earlier filing had indicated that the company was looking to raise Rs 9,000 crore to Rs 10,000 crore through a combination of a fresh issue and an offer for sale. The revised structure brings the maximum proposed issue size down by 24% from the earlier upper end of Rs 10,000 crore.
The reduction in the proposed IPO size does not, by itself, establish whether Avaada Electro has lowered its valuation. The final valuation will depend on the issue price and the number of shares offered.
Changed Structure
The company has also changed the proposed use of fresh issue proceeds.
Under the updated filing, Avaada Electro plans to use Rs 1,200 crore towards the prepayment, repayment or payment obligations to lenders related to certain borrowings and acceptances under letters of credit. It plans to use the remaining proceeds for general corporate purposes.
In its October 2025 filing, the company had said the proceeds would be used for capacity expansion in solar cell and module manufacturing, including a 5.1 GW facility in Uttar Pradesh and capacity additions at its Maharashtra plant.
Capacity Expansion
Avaada Electro manufactures solar cells and modules and currently operates 8.5 GW of solar module manufacturing capacity and 3 GW of tunnel oxide passivated contact, or TOPCon, solar cell capacity.
The company plans to expand its solar module capacity to 13.6 GW, solar cell capacity to 12 GW and ingot and wafer capacity to 3 GW by fiscal 2028. Once the projects are fully commissioned, the company expects to have manufacturing operations across ingots, wafers, solar cells and solar modules.
The company also plans to introduce an energy storage solution called Avaada Halo, integrate it with solar module sales and enter third-party engineering, procurement and construction, as well as operations and maintenance, segments.
Avaada Electro has two operational manufacturing facilities. Its Dadri facility in Uttar Pradesh has annual module manufacturing capacity of 1.5 GW. Its principal integrated facility in Nagpur, Maharashtra, has 7 GW of operational module capacity and a 6 GW solar cell facility, including 3 GW of operational capacity and 3 GW under commissioning.
The company said the additional 3 GW of cell capacity is proposed to become operational in the quarter ending Sept. 30, 2026.
Financial Growth
Revenue from operations rose to Rs 5,303.52 crore in fiscal 2026 from Rs 911.62 crore in fiscal 2025. EBITDA increased to Rs 1,258.86 crore from Rs 241.68 crore, while profit after tax grew to Rs 888.74 crore from Rs 173 crore.
Avaada Energy, a group company subsidiary, served as an anchor customer and contributed 89% of revenue from operations in fiscal 2026.
The company's installed module capacity increased to 8.5 GW from 1.5 GW in one year. Effective capacity rose to 6.05 GW from 0.76 GW, while production increased to 3.77 GW from 0.63 GW. Its order book expanded to 19,106 MW from 2,555 MW.
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