Avalon Technologies IPO all set to open on April 3; company sets price band at Rs 415-436 apiece

Avalon Technologies IPO: The initial public offering (IPO) of Avalon Technologies – an electronic manufacturing services company – would open for subscription from Monday April 3, 2023. The company ahead of its initial share sale has fixed a price band of Rs 415-436 a share.

The three-day initial share sale would close on April 6, 2023, and the bidding for anchor investors will open on March 31, the company has earlier announced.

The Rs 865-crore IPO comprises Rs 320 crore from fresh issuance of equity shares and Rs 545 crore through an offer for sale (OFS) of shares by promoters and existing shareholders.

Recently, Avalon Technologies completed a total pre-IPO placement of Rs 160 crore consisting of Rs 80 crore of primary or fresh issuance and Rs 80 crore of secondary share sales.

In the pre-IPO placement, the company garnered Rs 60 crore each from UNIFI Financial Pvt Ltd and Ashoka India Equity Investment Trust Plc and Rs 40 crore from India Acorn Fund Ltd.

Proceeds from the fresh issue would be used towards debt payment, funding working capital requirements and general corporate purposes. In January, the company received capital markets regulator Sebi's go-ahead to float the IPO.

About 75 per cent of the issue has been reserved for qualified institutional investors, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.

Investors can bid for a minimum of 34 shares and in multiple thereof.

Founded in 1999, Avalon is an end-to-end electronic manufacturing service solutions provider and counts Kyosan India, Zonar Systems Inc, Collins Aerospace, e-Infochips, The US Malabar Company, Meggitt (Securaplane Technologies Inc) and Systech Corporation as some of its key clients. It has 12 manufacturing units located across the US and India.

JM Financial, DAM Capital Advisors, IIFL Securities and Nomura Financial Advisory and Securities (India) Pvt Ltd are the merchant bankers for this IPO.

Shares of the company will be listed on BSE and NSE on April 18, 2023.

With PTI Inputs