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Avaada Electro cuts IPO size to ₹7,600 crore after investor pushback
The solar maker plans to use ₹1,200 crore of the IPO proceeds to repay debt, while potential investors raised concerns about revenue concentration in its power-generation unit.
Avaada Electro Ltd has scaled down its proposed initial public offering to ₹7,600 crore from an earlier potential target of ₹10,000 crore, according to an updated draft red herring prospectus submitted to India’s market regulator, SEBI, on 24 August. LiveMint Markets reports the reduction followed preliminary discussions with investors over valuation and concentration risks.
Investors said the company’s valuation should reflect heavy revenue dependence on its group power-generation subsidiary, Avaada Energy Pvt Ltd, as the IPO-bound entity derives almost all its revenue from that unit, which also faces competition. LiveMint Markets adds that competition in solar photovoltaic manufacturing has intensified from both listed and unlisted players.
The company generated nearly all of its revenue from Avaada Energy, with about 90% of FY26 revenue, totaling ₹4,733 crore, coming from the subsidiary, and reliance rising to 99.74% in FY25. LiveMint Markets notes that Avaada Energy’s competitor set includes Adani Green Energy Ltd, ReNew Energy Group PLC, Acme Solar Holdings Ltd, Tata Power Renewable Energy Ltd, NTPC Green Energy Ltd, and Juniper Green Energy Ltd.
Avaada Electro plans to allocate ₹1,200 crore of the fresh IPO proceeds to repay debt, with the remainder earmarked for general corporate purposes. LiveMint Markets says formal investor roadshows with company executives are still expected later.