Avalon Technologies IPO

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 nameAvalon Technologies Limited
Company Websitehttps://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 date03 April 2023
IPO Closing06 April 2023
Basis of Allotment12 April 2023
Initiation Refund13 April 2023
Credit to Demat Account17 April 2023
Listing Date18 April 2023

IPO details

Issue typeBook 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 size34 Shares
Retail Allocation10%
Listing ExchangeBSE & NSE

IPO Lot Size

Retail (Min)134₹14,824
Retail (Max)13442₹192,712
S-HNI (Min)14476₹207,536
S-HNI (Max)672,278₹993,208
B-HNI (Min)682,312₹1,008,032

Reservation Details

QIB Shares Offered75%
NII (HNI) Shares Offered15%
Retail Shares Offered10%

Financial Performance

 FY 2020FY 2021FY 20228M FY 2023
Net income12.323.168.234.2
PAT Margin (%)1.893.38.05.7
(Amount in ₹ Crors)

Valuations & Margins

FY 2020FY 2021FY 2022
PE ratio36.73 – 38.58
RONW (%)25.1940.3685.86
ROCE (%)26.8321.2627.41
EBITDA (%)11.609.5810.05

Company Promoters

  • Kunhamed Bicha
  • Bhaskar Srinivasan

Promoter Holding

Pre Issue Share Holding70.75%
Post Issue Share Holding51.24%

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

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

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