Avaada Electro has received SEBI approval to launch an IPO worth Rs 9,000-10,000 crore, aimed at expanding solar manufacturing capacity. Textile firm Sonaselection India and Grand Housing have also secured approval, signalling strong activity in India’s primary market.

Avaada Electro Gets SEBI Nod For ₹10,000 Crore IPO; Sonaselection India, Grand Housing Also Cleared

New Delhi, April 17: Avaada Electro, the solar manufacturing arm of the Brookfield-backed Avaada Group, has secured approval from Sebi to raise an estimated Rs 9,000-10,000 crore through an initial public offering (IPO), an update with the regulator showed on Friday.

Besides Avaada Electro, textile firm Sonaselection India and Chennai-based Grand Housing have also received Sebi's approval to float their maiden public issues.

According to the update, the three companies received the regulator's observations between April 15 and April 17. In Sebi parlance, issuance of observations implies its go-ahead to launch public offerings.

Avaada Electro plans expansion with IPO proceeds

Avaada Electro had filed its preliminary IPO papers with Sebi in October through the confidential route. The proposed IPO is expected to comprise a combination of a fresh issue of shares and an offer for sale (OFS) by existing shareholders.

According to people familiar with the development, the company is targeting to raise Rs 9,000-10,000 crore, which could value it in the range of Rs 1.10 lakh crore to Rs 1.3 lakh crore.

Proceeds are likely to be utilised for capacity expansion in high-efficiency solar cell and module manufacturing. This includes development of a 5.1 GW integrated facility in Uttar Pradesh and expansion of capacity at its Butibori plant in Maharashtra, they added.

Avaada Electro is part of the Avaada Group, a diversified clean energy conglomerate with interests spanning solar PV manufacturing, renewable power generation, green hydrogen and its derivatives, pumped hydro storage, battery storage, and green data centres.

Sonaselection India and Grand Housing plans

Meanwhile, Bhilwara-headquartered Sonaselection India's IPO will comprise a fresh issue of 1.43 crore equity shares, with no OFS component, according to its draft red herring prospectus (DRHP) filed in October.

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The company plans to utilise Rs 80 crore from the proceeds for debt repayment, Rs 47.55 crore for purchase of plant and machinery, and a portion will be used for general corporate purposes.

Grand Housing plans to offer 3.55 crore equity shares entirely through an offer for sale. All three companies are proposed to list on the BSE and NSE.