Avada in 5 years Rs. 1 lakh crore will be invested; Solar PV Arm files for IPO

As part of its expansion in both power generation and allied businesses, renewables-focused Awada Group will invest Rs. Aims to invest 1 lakh crore.

Its solar photovoltaic manufacturing arm has filed documents with the regulator for its first share sale to the public, group chairman Vineet Mittal told reporters.

Mittal said the group, which currently has about 6,000 employees, is looking to hire 10,000 people over the next three years as it expands.

Currently, the group has 6.1 GWp or gigawatt-peak solar power generation assets, Mittal said, adding that the same number will be taken up to 30 GWp in the next five years.

It is also eyeing wind power generation, and growth in this direction will be faster than solar power, Mittal said, adding that a fifth of overall generation will come from wind power in the next five years.

The overall capacity target also includes its play on the battery storage side, where it aims to deliver solutions capable of delivering power during peak hours when the supply of renewable power cannot be sustained, Mittal said.

The group is also looking at pumped hydro assets, but Mittal said he was unsure whether the capacity would come on stream in the next five years.

Mittal said the group has no challenges on the capital front to undertake expansion activities, pointing out that it has secured commitments from external investors of Rs. 10,500 crore capital is yet to be fully utilised.

Citing the launch of new investment vehicles, Mittal said the sustainability theme ensured high investor interest in his projects.

Typically, a fourth of the money invested comes from equity while the rest is debt, he said, adding that it would also generate internal accruals.

Mittal declined to share any details on the IPO of solar PV manufacturing arm Avada Electro, pointing out that the papers have been filed under the confidential route.

The IPO could hit the markets in the first half of next year, he said.

None of the group’s investors or promoters monitor the dividend income and whatever surplus is generated is reinvested in the business, he added.

The top executive also declined to share the revenue breakdown across businesses for the group or financial position.

Mittal said a glass manufacturing facility near Noida which was announced earlier will be operational in the next 13-14 months with a capacity of 1,200 tonnes per day.