Avalon Technologies IPO Day 1: Electronic manufacturing providers agency Avalon Technologies Ltd’s preliminary public providing is ready to open for subscription immediately, and can stay open until Thursday, April 6, 2023.
The firm on Friday mentioned it has raised slightly over Rs 389 crore from anchor traders forward of its preliminary share sale. The firm has determined to allocate a complete of 89.27 lakh fairness shares to 24 funds at Rs 436 apiece.
Avalon Technologies IPO: Price band
The worth band has been fastened at Rs 415-436, per share, with a face worth of Rs 2 every.
Avalon Technologies IPO: Public Issue dimension
Avalon intends to lift Rs 865 crore by its IPO that contains a recent issuance of shares value Rs 320 crore, and a suggestion on the market (OFS) of fairness shares value Rs 545 crore by promoters and different shareholders.
The OFS consists of fairness shares value Rs 131 crore being bought by Kunhamed Bicha, shares value Rs 172 crore being bought by Bhaskar Srinivasan, Rs 16 crore by T P Imbichammad, Rs 10 crore by Mariyam Bicha, Rs 65 crore by Sareday Seshu Kumar. Also, Anand Kumar and Luquman Veedu Ediyanam will every promote shares value Rs 75.5 crore within the OFS.
Objectives of the problem
The digital manufacturing providers (EMS) firm goes to utilise the recent subject proceeds for repaying money owed (Rs 145 crore), and dealing capital necessities (Rs 90 crore), in addition to normal company functions. The funds raised by way of the OFS will go to the promoting shareholders, not the corporate.
Avalon Technologies IPO: GMP
As per market observers, Avalon Technologies shares are commanding a premium (GMP) of Rs 12 within the gray market immediately. The shares of the corporate are anticipated to record on the main inventory exchanges BSE and NSE on Tuesday, April 18, 2023.
“Compared to its rivals within the business, the corporate has a formidable PAT margin. The IPO valuation for Avalon Technologies, primarily based on the FY22 figures, is 45x PE publish a recent subject, which is analogous to the market common. It will likely be intriguing to look at the response that the corporate receives given the present unsettled market situations,” said Abhay Doshi of UnlistedArena.
Avalon Technologies IPO: About The Company
Incorporated in 1999 at Chennai, Avalon Technologies is a fully-integrated EMS company with end-to-end operations in delivering box build solutions, with a focus on high-value precision-engineered products.
It provides a full-stack product and solution suite, right from printed circuit board (PCB) design and assembly, to the manufacture of complete electronic systems (box build). Its customers include global original equipment manufacturers (OEMs), including OEMs located in the United States, China, Netherlands, and Japan.
Avalon Technologies IPO: Should You Subscribe?
The company sources its raw material from suppliers, primarily on a purchase order basis, who may not perform their contractual obligations in a timely manner or at all. Any hike in raw material costs may adversely affect the business and financial performance. The company is also dependent on a few customers for a major portion of its revenues.
“Although the overall outlook for Avalon Technologies IPO is positive, investors should be cautious given the current market conditions. The electronics manufacturing industry is known for its volatility, and raw material costs may adversely affect the business. Investors should carefully evaluate the company’s performance, financial health, and growth prospects before investing in the IPO,” mentioned Krishna Raghavan- Founder at Unlistedkart.
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