The IPO of Avalon Technologies will open for subscription on April 3. 10 things to know

Avalon Technologies, a leading fully integrated electronics manufacturing services (EMS) company is all set to launch its initial public offering (IPO) on 3rd April. The public offer will be available for subscription till April 6. The company has raised around Rs 5 lakh before the IPO. 389.25 crore from 24 anchor investors. Post IPO, the company is proposed to be listed on BSE and NSE.

Here are 10 key takeaways from Avalon Technologies IPO,

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

2. Among the anchor investors, some prominent names were Goldman Sachs Fund, HDFC Large & Midcap Fund, Franklin India Opportunities Fund, WhiteOak Capital Funds, IIFL Select Series II, Mahindra Manulife Funds and Nomura India Stock Mother Fund.

3. Out of the total allotment of Equity Shares to Anchor Investors — approximately 2,981,698 Equity Shares (i.e. 33.40% of the total allotment to Anchor Investors) were allotted to 5 Domestic Mutual Funds through total 10 schemes.

4. The IPO for non-anchor investors meaning qualified institutional buyers (QIBs), non-institutional investors (NIIs), and retail individual investors (RIIs) will open from April 3 to 6.

5. IPO includes a fresh issue 320 crore and raising an offer for sale (OFS). 865 crores.

6. Price band has been kept minimum 415 per share and max. 436 per share.

7. Under the OFS, the selling shareholders of the company are — Promoters Kunhamed Bicha, Bhaskar Srinivasan, TP Imbichammed and Mariam Bicha. The other shareholders are Anand Kumar, Sardeya Seshu Kumar, and Lukuman Veedu Adhiyanam.

8. Out of the total 100% book building offer, 75% will be earmarked for QIBs, 15% for NIIs and 10% for RIIs.

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

10. The company will not use the proceeds from the OFS as they will go towards selling to the shareholders. However, Avalon plans to use the proceeds from the new issue to repay all or a portion of the outstanding borrowings of itself and its subsidiaries, Avalon Technology & Services. In addition, the company plans to use the fresh capital proceeds to finance working capital requirements and general corporate objectives.

Avalon Technologies is one of the fully integrated Electronic Manufacturing Services (“EMS”) companies focused on high-value precision engineered products with end-to-end operations to deliver box-build solutions in India in terms of revenue focuses attention.

Avalon has witnessed a significant growth in its customer base from 62 in FY21 to 81 in FY21, which has led to growth in its order book. 11,902.46 million by November 2022 9,182.32 million by November 2021.

Its electronics manufacturing facilities include 66 production lines, including 11 Surface Mount Technology (“SMT”) lines, 12 Through Hole Technology (“THT”) lines, and 43 assembly lines.