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Avalon Technologies IPO to open on 3 April for subscription. 10 issues to know

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Avalon Technologies IPO to open on 3 April for subscription. 10 issues to know

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Home / Markets / Ipo /  Avalon Technologies IPO to open on 3 April, raises 389 cr from anchor buyers. 10 key issues to know


320 crore and a suggestion on the market (OFS) aggregating to 865 crore.” title=”The IPO comprised a contemporary concern value 320 crore and an offer for sale (OFS) aggregating to 865 crore.”>
The IPO comprised a fresh issue worth 320 crore and an offer for sale (OFS) aggregating to 865 crore.
  • Avalon Technologies is one of the leading fully integrated EMS companies with end-to-end operations in delivering box-build solutions in India in terms of revenue, with a focus on high-value precision engineered products. Ahead of the IPO, the company raises 389 crore from anchor investors.

 

 

Leading fully integrated Electronic Manufacturing Services (EMS) company, Avalon Technologies is set to launch its initial public offering (IPO) on April 3rd. The public offer will be available for subscriptions till April 6th. Ahead of the IPO, the company has raised around 389.25 crore from 24 anchor investors. Post the IPO, the company is proposed to be listed on BSE and NSE.

Leading fully integrated Electronic Manufacturing Services (EMS) company, Avalon Technologies is set to launch its initial public offering (IPO) on April 3rd. The public offer will be available for subscriptions till April 6th. Ahead of the IPO, the company has raised around 389.25 crore from 24 anchor investors. Post the IPO, the company is proposed to be listed on BSE and NSE.

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Here are the ten key factors of Avalon Technologies IPO:

1. Avalon allotted 8,927,751 equity shares to 24 anchor investors and raised 389.25 ahead of the company’s proposed IPO, at the upper price band of 436 per equity share (including a premium of 434 per equity share) with a face value of 2 per share.

2. Among the anchor buyers, among the main names have been Goldman Sachs Funds, HDFC Large and Midcap Fund, Franklin India Opportunities Fund, WhiteOak Capital funds, IIFL Select Series II, Mahindra Manulife funds, and Nomura India Stock Mother Fund.

3. Of the total allocation of equity shares to anchor investors — about 2,981,698 equity shares (i.e. 33.40% of the total allocation to Anchor Investors) were allocated to 5 domestic mutual funds through a total of 10 schemes.

4. The IPO for non-anchor investors which means qualified institutional buys (QIBs), non-institutional investors (NIIs), and retail individual investors (RII) will open from April 3rd to 6th.

5. The IPO comprised a fresh issue worth 320 crore and an offer for sale (OFS) aggregating to 865 crore.

6. The price band has been at a minimum of 415 per share and a maximum of 436 per share.

7. Under the OFS, the selling shareholders of the company are — promoters Kunhamed Bicha, Bhaskar Srinivasan, T P Imbichammad, and Mariyam Bicha. Other shareholders are Anand Kumar, Sareday Seshu Kumar, and Luquman Veedu Ediyanam.

8. Of the total 100% book building offer, 75% of the portion will be kept for QIBs, 15% reserved for NIIs, and 10% for RIIs.

9. JM Financial Limited, DAM Capital Advisors Limited, IIFL Securities Limited, and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers to the Offer. Link Intime India is the registrar of the issue.

10. The company will not use the proceeds from OFS since they will go to selling shareholders. However, Avalon plans to use proceeds from fresh issue for repayment of all or a portion of certain outstanding borrowings of itself and one of its subsidiaries Avalon Technology and Services. Also, the company plans to use fresh capital proceeds for funding working capital requirements and general corporate purposes.

Avalon Technologies is one of the leading fully integrated Electronic Manufacturing Services (“EMS”) corporations with end-to-end operations in delivering box-build options in India when it comes to income, with a deal with high-value precision engineered merchandise.

Avalon has seen a major rise in its buyer base to 81 in FY22 from 62 in FY21, rising its order e-book to 11,902.46 million as of November 2022 from 9,182.32 million as of November 2021.

Its digital manufacturing services comprise an combination of 66 manufacturing traces, consisting of 11 Surface Mount Technology (“SMT”) lines, 12 Through Hole Technology (“THT”) traces, and 43 meeting traces.

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