Avalon Technologies is set to make its market debut on Tuesday after the initial public offering. The company’s IPO received oversubscription on the final day with strong demand from qualified institutional buyers (QIBs). Avalon’s share price will list on both BSE and NSE.
In a notification on Monday, NSE said, “The equity shares of the following company shall be listed and admitted to dealings on the Exchange w.e.f. April 18, 2023. Trading shall be in the Normal Market segment – Compulsory Demat (Rolling Settlement) for all investors.”
Ahead of the listing, A R Ramachandran, Co-founder & Trainer – of Tips2trades said, “Even though fundamentals are great in terms of profitability and return ratios, PE ratio of above 50 in the current environment looks expensive. Investors should wait for lower levels post listing to buy.”
The company launched its public offer from April 3rd to April 6th. The IPO comprised a fresh issue worth ₹320 crore and an offer for sale (OFS) aggregating to ₹865 crore.
The IPO’s price band was at a minimum of ₹415 per share and a maximum of ₹436 per share. Of the total 100% book building offer, 75% of the portion will be kept for QIBs, 15% reserved for NIIs, and 10% for RIIs.
On the last day of the IPO, Avalon received a subscription of 2.21 times cumulatively. QIBs category fully subscribed their portion by 3.57 times. However, the non-institutional investors and retail individual investors category did not fully subscribe as they saw a demand of 41% and 84% of their total reserved size.
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.
Before the public offer, Avalon raised around ₹389.25 crore from 24 anchor investors.
Avalon Technologies is one of the leading fully integrated Electronic Manufacturing Services (“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.
The company has seen a significant rise in its customer base to 81 in FY22 from 62 in FY21, increasing its order book to ₹11,902.46 million as of November 2022 from ₹9,182.32 million as of November 2021.
