Avana Electrosystems

• Avana Electrosystems is coming out with an initial public offering (IPO) of 59,70,000 shares in a price band of Rs 56-59 per equity share. 
• The issue will open on January 12, 2026 and will close on January 14, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 5.60 of its face value on the lower side and 5.90 times on the higher side.
• Book running lead manager to the issue is Indcap Advisors.
• Compliance Officer for the issue is Amrutha Naveen.

Profile of the company

Avana Electrosystems is a manufacturer of customised Control and Relay Panels ranging from 11kv to 220kv for Power System Monitoring, Control and Protection Applications Transmission Lines, Power Transformers, Bus Bar, Capacitor Bank, etc, for both indoor and outdoor usage, MV and LV Panels, Protection Relays and Substation Automation Systems. These panels are used across various sectors and industries to facilitate the transmission and distribution of electrical power such as in solar power plants, wind power farms, other power generation plants, power transmission stations, electricity board sub-stations, power utilities companies etc.

It also manufactures relays, which is a device used in electrical systems to detect faults and protect equipment by analysing electrical parameters and executing protective actions. The company is an ISO 9001:2015 certified company and its current product portfolio may be categorized as: i) High Voltage and extra high voltage systems which includes conventional and BCU based Control and Relay Panels for SCADA & Substation Automations Systems, Feeders / Line Protection Panels, Transformer Protection Panels, Bus-Bar Protection Panels and Capacitor Bank Protection Panels; ii) Medium voltage systems which include indoor and outdoor type control and relay panels for feeder protection panels, bus coupler panels and transformer protection panels; iii) Low Voltage Systems for AC Distribution Box, DC Distribution Box, On-load tap Changer Panels and Metering Panels; and iv) Protection Relays and Electromechanical Relays.

The company has two manufacturing units and both its manufacturing units are equipped with necessary infrastructure, a team of engineers and technicians who have expertise in the areas of Design, Manufacturing, Testing and Commissioning of Control and Relay Panels, Switchgear Panels, Protection Relays and Automation Panels for system voltage for power system applications. Its customer mix primarily include governmental power utilities and private sector energy producers. It has its presence across India. It has commenced export of its products to one customer in Kuwait in the Fiscal year 2025-2026.

Proceed is being used for:

• Capital expenditure towards civil construction, internal electric work and internal plumbing to set up an Integrated manufacturing unit
• Meeting working capital requirements of the company
• General corporate purposes
• Meeting offer expenses

Industry Overview

The rockstar of a circuit breaker, an orchestra of electrical disconnects, fuses with circuit breaking, isolating and de-energising electrical equipment, allowing work to progress by clearing faults downstream - presenting ‘Switchgears’, indispensable not only in transmission and distribution of power but wherever there is a need to access and control electricity; and now, with recent indications, adding monitoring and signalling too as becoming integral parts of switchgears. India currently represents about 7.2% of the total manufacturing segment in India’s GDP and 45% share in the capital goods sector. The switchgear industry in India manufactures the A to Z of circuit breakers from bulk oil, minimum oil, air blast, vacuum and sulphur hexafluoride all these as per standard specifications in the entire voltage range from 240V to 800 KV. IEEMA’s two dedicated divisions, the Low Voltage Switchgear Division and the High & Medium Voltage Switchgear Division, represent this segment of the industry, producing and supplying switchgear and related items needed by the power industry and the industrial sector.

India’s low-voltage switchgear industry has been experiencing a positive trajectory in recent years, with a growth rate of 13% over last year (FY22-23). It is driven by several factors, such as industrial growth, increasing demand for electricity, infrastructure development, and government initiatives focused on energy, efficiency and renewable energy. Rapid growth in the power distribution sector and infrastructure development, renewable energy integration, smart grid initiatives with integration of smart monitoring and control equipment are expected to fuel the growth of the India Switchgear market for the next 6-7 years.” The switchgear industry in India plays a crucial role in the electrical power generation, transmission and distribution sectors. However, the switchgear industry is well supported by new emerging markets like solar, hydrogen, battery storage and EV.

The preceding analysis and projections lead to conclusions and recommendations that can be considered by policymakers engaged in different aspects of electricity system planning, regulation, and policy. India’s government policies provide a favourable environment for the growth of the switchgear industry by promoting domestic manufacturing, renewable energy adoption, electrification and smart infrastructure. The combination of the Make in India initiative, ambitious renewable energy targets, smart grid developments, and rural electrification programs will fuel demand for modern switchgear solutions. The Make in India policy and the Quality Control Order have encouraged global and domestic manufacturing companies to establish manufacturing facilities in India, thereby enhancing production capabilities, reducing costs, and improving the quality of locally manufactured switchgear products. It has also attracted foreign direct investment (FDI) into the sector, helping India become a manufacturing hub for electrical equipment. 

Pros and strengths

Customisation & multi - product portfolio: The company provides a comprehensive range of custom-built Control and Relay Panels ranging from 11kv to 220kv. These panels are used across various sectors and industries to facilitate the efficient transmission and distribution of electrical power such as in solar power plants, wind power farms, other power generation plants, power transmission stations, electricity board sub-stations, power utilities companies etc. It also has comprehensive range of relays which are used in electrical systems to detect faults and protect equipment by analysing electrical parameters and executing protective actions.

In-house R&D Team: The company is equipped with an in-house Research and Development facility which has a team of 9 Engineers, firmware and software developers. Its R&D teams help it to bring out innovation in its existing products. It also obtains third party validation and type test its products at approved laboratories across India for compliance with specific international standards (IEC). It also obtains feedback from its customers and improve its products. These R&D activities carried out by the company are operational in nature and form part of the normal course of business.

Quality standard certifications & quality tests: The company’s customisation and product quality helps it to retain existing customers, onboard new customers and build brand image. It practices quality checks which include inspection of materials, before they enter the production floor for production, initial testing, final testing and pre dispatch check. The company also has in-house testing lab which tests on various parameters as per quality requirements of customers. Its products are tested as per IEC Standards at NABL accredited laboratories as per utility norms. Some of its customers also require it to test its products at their site and it conducts such quality checks by deputing its testing team its manufacturing facility located at Peenya Industrial Estate, Bengaluru is having ISO 9001:2015 certification for its Quality Management Systems.

Risks and concerns

Revenue dependence on top customers: A significant portion of the company’s revenue from operations is derived from a limited number of customers, exposing it to customer concentration risk. For the period ended September 30, 2025 and the financial years ended March 31, 2025, 2024, and 2023, revenue from operations generated from its top 5 customers accounted for 38.79%, 22.42%, 22.76%, and 36.01% of its total revenue from operations, respectively. Revenue from operations from its top 10 customers represented 52.00%, 31.50%, 37.07%, and 47.91% for the period ended September 30, 2025 and the financial years ended March 31, 2025, 2024, and 2023 respectively. Any adverse change in the business relationship with one or more of its top 5 and top 10 customers, including a reduction in order volume, changes in contract terms, delayed payments, or termination, could materially and adversely affect its revenue, cash flows, and overall financial performance.

Revenue vulnerability to geographical concentration: A major portion of the company’s revenue from operations is derived from three states (Madhya Pradesh, Maharashtra and Karnataka) and the combined revenue from the three states accounted for 48.33%, 66.42%, 61.58% and 44.02% of its total revenue from operations for the period ended September 30, 2025 and the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively. As a result, its business is significantly exposed to the regional economic, political, and environmental conditions in these geographies. Any adverse development in Madhya Pradesh, Maharashtra and Karnataka, such as economic downturn, changes in regulatory or governmental policies, disruptions in local infrastructure, natural disasters, or socio-political unrest, could materially and adversely affect its revenue from operations, limit customer demand, or impact its ability to execute existing contracts, thereby affecting its financial performance and growth prospects.

Impact of supplier reliance on operations and financial performance: The company’s reliance for raw materials/components is highly dependent on a few limited numbers of suppliers and the loss of one or more such suppliers, the deterioration of their financial condition or prospects, or higher demand from its competitors could adversely affect its supplies from these suppliers. The company procured 57.71%, 58.83%, 57.69% and 60.44% of its raw material from its top 10 supplier for the period ended September 30, 2025 and the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 respectively. Any adverse change in its business relationship with one or more of its top 10 suppliers, including a reduction in materials supplied, changes in supply terms, changes in payment terms, or termination of its orders, could materially and adversely affect its revenue, cash flows, and overall financial performance and also expose it to risks of supply disruptions, pricing volatility which may adversely impact its production schedules and financial performance.

Outlook

Avana Electrosystems is engaged in manufacturing of customised Control and Relay Panels. The company operates two manufacturing units in Peenya Industrial Estate, Bengaluru, Karnataka, specializing in industrial production and advanced engineering solutions. The company has Strong customer relationships and wide customer base. It has quality standard certifications & quality tests. On the concern side, the company derived a significant portion of its revenue from operations from limited number of customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect its business, results of operations, financial condition and cash flows. Moreover, a significant portion of its revenue from operations is generated from three states (Madhya Pradesh, Maharashtra and Karnataka). Any adverse development affecting its business operations in these regions could have a negative impact on its revenue and results of operations.

The company is coming out with a maiden IPO of 59,70,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 56-59 per equity share. The aggregate size of the offer is around Rs 33.43 crore to Rs 35.22 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations increased 16.04% to Rs 6,148.58 lakh in FY25 from Rs 5,298.77 lakh in FY24. Moreover, the company reported 20% rise in net profit at Rs 831.23 lakh in FY25 as compared to Rs 402.41 lakh in FY24.

The company has two functional manufacturing units which are equipped with necessary infrastructure, a team of engineers and technicians who have experience in the areas of Design, Manufacturing, Testing and Commissioning of Control and Relay Panels, Switchgear Panels, Relays and Automation Panels for system voltage for power system applications. Both these units have a combined total area of 12,500 sq. ft, with an installed capacity of 70,000 units in Unit I for protection relays and 600 units in Unit II for control and relay panels and are currently operating at optimum capacity. As on March 31, 2025, its facilities were operating at 94.06% capacity for Unit I and 87.16% capacity for Unit II. Both of its existing manufacturing units are leased on a leave and license basis. The total area of both these units is fully utilised and further capacity expansion is not possible. In view of the growth in revenue recorded over the past three financial years, and in anticipation of continued demand driven by infrastructure expansion and industrial growth, the company plans to relocate both the existing units to a single new integrated manufacturing unit.