Key Points of Avalon IPO Focus on Clean Energy & Communication:
- Avalon Technologies Ltd. is an electronic manufacturing services (EMS) provider that specializes in end-to-end box build solutions.
- Avalon is targeting high-growth sectors such as clean energy and emerging communication technologies.
- Clean energy is projected to grow at a CAGR of 87.3%, reaching ₹7600 crore by fiscal 2026.
- The communication sector, which comprises telecom, satellite, and digital infrastructure, will be the company’s focus.
- Avalon’s IPO will commence on April 3, 2023, and will conclude on April 6, 2023.
- The Public Issue includes a fresh issue of equity shares aggregating up to ₹320 crore and an offer for sale of equity shares aggregating up to ₹545 crore.
- Avalon plans to utilize the net proceeds of the ₹320 crore fresh issue for prepayment or repayment of certain outstanding borrowings, funding working capital requirements, and for corporate purposes.
- The company was founded by Kunhamed Bicha and Bhaskar Srinivasan and has raised a total of ₹160 crore in pre-IPO placements. Avalon plans to expand its local manufacturing presence in the United States and India by leveraging country-specific government policy initiatives.
Details of Avalon IPO Focus on Clean Energy & Communication:
Avalon Technologies Ltd., an electronic manufacturing services (EMS) provider that specializes in end-to-end box build solutions, is set to target high-growth sectors, such as clean energy and emerging communication technologies, according to the Red Herring Prospectus (RHP) filed with the Securities and Exchange Board of India (SEBI).
Clean energy, which includes solar, electric vehicles, and hydrogen, is estimated to be worth ₹600 crore in India for fiscal 2022 and is projected to grow at a CAGR of 87.3%, reaching ₹7600 crore by fiscal 2026, as per a report by Frost & Sullivan.
On the other hand, the communication sector, which comprises telecom, satellite, and digital infrastructure, will be the company’s focus, where they will concentrate on high-margin value products with medium to long life cycles that require precision engineering.
Avalon’s initial public offering (IPO) is scheduled to commence on April 3, 2023, and will conclude on April 6, 2023. The Public Issue includes a fresh issue of equity shares, which will aggregate up to ₹320 crore, as well as an offer for sale of equity shares, which will total up to ₹545 crore.
The company aims to use the net proceeds of the ₹320 crore fresh issue for prepayment or repayment of some outstanding borrowings availed by it and one of its subsidiaries, funding working capital requirements, and corporate purposes.
Founded by Kunhamed Bicha and Bhaskar Srinivasan, the company has raised a total of ₹160 crore in pre-IPO placements. With a presence in 12 manufacturing facilities across the United States and India, Avalon plans to expand its local manufacturing footprint in these countries by taking advantage of government policy initiatives.
About Avalon:
Avalon Technologies was established more than two decades ago, in 1995, by our entrepreneurial founders who began assembling circuit boards in a small suburban household in Fremont, California. Over time, our operations have grown considerably, and as of March 31, 2022, we now have a global manufacturing footprint and employ more than 1900 people.
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