Avalon Technologies IPO will open for subscription from 03 April 2023. the company aims for an issue size of ₹865 Cr through this IPO.
About Company
The company is one of the leading fully integrated Electronic Manufacturing Services (EMS) players in India. It provides a full-stack product and solution suite, right from PCB design and assembly to the manufacture of Box Build, to certain global OEMs, including OEMs located in the United States, China, Netherlands, and Japan.
It specializes in manufacturing and providing design support for critical integrated assemblies, sub-assemblies, components, and enclosures for multiple industry verticals. The end-use industries it caters to include a mix of established and long product lifecycle industries, such as industrial, mobility, and medical devices, and high growth “sunrise” industries, such as solar, electric vehicles, and hydrogen in the clean energy sector and digital infrastructure in the communications sector. The company has 12 manufacturing units located across the United States and India.
Some of its key customers include Kyosan India Private Limited, Zonar Systems Inc., Collins Aerospace, e-Infochips Private Limited, The US Malabar Company, Meggitt (Securaplane Technologies Inc), and Systech Corporation, with whom it has had relationships for more than seven years.
Basic details about the company
| Full name | Avalon Technologies Limited |
| Sector | Electricals |
| Industry | Electronics-Components |
| Company Website | https://www.avalontec.com/ |
The objective of the Issue
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company and one of the Material Subsidiaries, i.e. Avalon Technology and Services Private Limited (ATSPL);
- Funding the working capital requirements of the Company;
- General corporate purposes.
IPO Timetable
| IPO Opening date | 03 April 2023 |
| IPO Closing | 06 April 2023 |
| Basis of Allotment | 12 April 2023 |
| Initiation Refund | 13 April 2023 |
| Credit to Demat Account | 17 April 2023 |
| Listing Date | 18 April 2023 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹865 Cr – 19,839,450 shares |
| Fresh Issue | ₹320 Cr – 7,339,450 shares |
| Offer for sale | ₹545 Cr – 12,500,000 shares |
| Face value | ₹2 per share |
| Price Band | ₹415 to ₹436 per share |
| Lot size | 34 Shares |
| Retail Allocation | 10% |
| Listing Exchange | BSE & NSE |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 34 | ₹14,824 |
| Retail (Max) | 13 | 442 | ₹192,712 |
| S-HNI (Min) | 14 | 476 | ₹207,536 |
| S-HNI (Max) | 67 | 2,278 | ₹993,208 |
| B-HNI (Min) | 68 | 2,312 | ₹1,008,032 |
Reservation Details
| QIB Shares Offered | 75% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 10% |
Financial Performance
| FY 2020 | FY 2021 | FY 2022 | 8M FY 2023 | |
| Revenue | 653.2 | 695.9 | 851.7 | 597.0 |
| Expenses | 637.9 | 667.1 | 785.2 | 549.6 |
| Net income | 12.3 | 23.1 | 68.2 | 34.2 |
| PAT Margin (%) | 1.89 | 3.3 | 8.0 | 5.7 |
Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | |
| EPS | 2.21 | 4.01 | 11.30 |
| PE ratio | – | – | 36.73 – 38.58 |
| RONW (%) | 25.19 | 40.36 | 85.86 |
| NAV | 8.93 | 11.19 | 15.60 |
| ROCE (%) | 26.83 | 21.26 | 27.41 |
| EBITDA (%) | 11.60 | 9.58 | 10.05 |
| Debt/Equity | 5.89 | 5.28 | 3.64 |
Company Promoters
- Kunhamed Bicha
- Bhaskar Srinivasan
Promoter Holding
| Pre Issue Share Holding | 70.75% |
| Post Issue Share Holding | 51.24% |
Lead Manager(s)
- JM Financial Limited
- DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd)
- IIFL Securities Ltd
- Nomura Financial Advisory And Securities (India) Pvt Ltd
IPO Registrar
Link Intime India Private Limited
C-101, 247 Park, 1st Floor
L.B.S. Marg, Vikhroli West Mumbai
400 083, Maharashtra, India
Phone: +91 22 4918 6200
E-mail: avalontec.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Details
AVALON TECHNOLOGIES LIMITED
B – 7, First Main Road, MEPZ,
Tambaram, Chennai – 600 045
Tamil Nadu, India
Phone: +91 44 42220 400
E-mail: investorsrelations@avalontec.com
Website: www.avalontec.com
Allotment Status
Avalon Technologies IPO allotment will be available on Link Intime’s website. Click on this link to get allotment status.
Final thoughts
Avalon Technologies IPO is going to hit Dalal street soon. applying for an IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
