Should you invest in the upcoming Rs. 865 crores Avalon Tech IPO? All you need to know before investing

Avalon Tech to launch its IPO on April 3.

Avalon Tech IPO

Avalon Tech is launching its IPO, reducing it from Rs. 1,025 crores to Rs. 865 crores. It includes a Rs. 320 crores fresh issue and an OFS of up to Rs. 545 crore. Avalon Technologies Ltd. is an electronic manufacturing services company launching its IPO on April 3. It will close on April 6.

Also Read: All you need to know about Avalon Tech filing its papers with the SEBI in 2022.

Who Will Offer What?

Shares offered: 

  • Seshu Kumar: 65 crores
  • Anand Kumar: Up to Rs. 75.50 crores
  • Luquman Veedu Ediyanam: Up to Rs. 75.50 crores
  • Mariyam Bicha: Up to Rs. 10 crores
  • TP Imbichammad: Rs 16 crores
  • Kunhamed Bicha: Up to Rs .131 crores\

The date of allotment is April 12, and the successful bidders will receive the shares on April 17. The market debut for the company is April 18. Avalon wants to use the fresh issue collection's Rs. 145 crores to pay off debts. Its consolidated borrowings were Rs. 324.12 as of January 2023. It wants to use Rs. 90 crore for working capital, and the sanctioned aggregate amount by the banks is Rs. 152.69 crore. 

The lead managers for the issue are Nomura Financial Advisory and Securities India, IIFL Securities, DAM Capital Advisors, and JM Financial. The reduced IPO was due to the pre-IPO placement between October 22 and February 23. It amounted to Rs. 160 crores, and investors like India Acorn Fund Ltd, Ashoka India Equity Investment Trust Plc, and UNIFI Financial Private Limited participated. 

What Does Avalon Technologies do?

Avalon technologies is an Electronic Manufacturing Services company (EMS) with end-to-end, fully integrated capabilities to deliver box-build solutions across India. It focuses on precision-engineered, high-value products. The company provides a full-blown solution and product suite. Offerings include:

  • Printed circuit board design.
  • Assembly.
  • Electronic systems manufacturing.
  • Global original equipment manufacturing.

It caters to Japan, The Netherlands, China, and the USA. It has 12 manufacturing units in the US and India. Avalon specializes in providing and manufacturing design support for sub-assemblies, assemblies, enclosures, and components for various industry verticles. 

Also ReadDifference between traditional and confidential IPO filing.

Avalon Technologies reported an increased income from Rs. 695.90 crores to Rs. 851.65 crores in FY22. It clocked a net profit of Rs. 68.16 crores, up from Rs. 23.08 crores last year. Its EBITDA improved from 9.58% to 11.6%. 

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