Avalon Tech Reduces IPO Size to Rs 865 Crore, IPO to Open on April 3
Avalon Technologies IPO opening on April 3, reduces size to Rs 865 Cr
Electronic manufacturing services provider, Avalon Technologies Ltd, has announced that its initial public offering (IPO) will open for subscription on April 3, 2023. The company has reduced its IPO size to Rs 865 crore from Rs 1,025 crore, comprising of a fresh issue of Rs 320 crore and an offer for sale (OFS) of shares worth Rs 545 crore.
Avalon Tech IPO to close on April 6, allotment on April 12, market debut on April 18
Avalon Tech’s IPO will close on April 6, and the allotment will take place on April 12. Successful bidders will have their shares credited to their accounts on April 17, and the company will make its market debut on April 18. Anchor investors’ bidding will open on March 31.
Avalon Tech to use IPO funds to pay debt, allocate to working capital requirements
The company plans to use Rs 145 crore from the fresh issue to pay its debt and that of its material arm Avalon Technology and Services Pvt Ltd. Meanwhile, Rs 90 crore will be allocated to working capital requirements.
Avalon Tech provides full stack product and solution suite to global OEMs
Avalon Tech provides a full stack product and solution suite, ranging from printed circuit board (PCB) design and assembly to the manufacture of complete electronic systems (box build) to global original equipment manufacturers (OEMs), including those in the US, China, The Netherlands and Japan. The company has 12 manufacturing facilities in India and the US.
Pre-IPO placement leads to reduction in Avalon Tech’s IPO size
The reduction in the IPO size was a result of the pre-IPO placement carried out by Avalon Technologies, which took place between October 2022 and February 2023, and amounted to Rs 160 crore.
JM Financial, DAM Capital Advisors, IIFL Securities and Nomura Financial Advisory and Securities India are the lead managers to the issue.
Avalon Tech reports higher total income, net profit, and EBITDA margin for FY22
For FY22, Avalon Technologies reported a total income of Rs 851.65 crore, up from Rs 695.90 crore a year ago. The net profit for the year stood at Rs 68.16 crore against Rs 23.08 crore in the previous year. The EBITDA margin for the year improved to 11.6 percent from 9.58 percent in the previous year.
Avalon Tech specializes in delivering high-value precision-engineered products
Avalon Technologies is a leading fully integrated Electronic Manufacturing Services (EMS) company that focuses on delivering box-build solutions in India, with a particular emphasis on high-value precision-engineered products. The company specializes in manufacturing and providing design support for critical integrated assemblies, sub-assemblies, components, and enclosures for multiple industry verticals.
Avalon Tech’s IPO to include offer for sale of shares by key shareholders
The firm has announced that Kunhamed Bicha, TP Imbichammad, Mariyam Bicha, Anand Kumar, Luquman Veedu Ediyanam, and Seshu Kumar will each offer shares worth up to Rs 131 crore, Rs 16 crore, up to Rs 10 crore, up to Rs 75.50 crore, up to Rs 75.50 crore, and up to Rs 65 crore respectively.
Investors participating in the pre-IPO placement included UNIFI Financial Private Limited, Ashoka India Equity Investment Trust Plc, and India Acorn Fund Ltd.
With its upcoming IPO, Avalon Technologies aims to achieve its goal of strengthening its presence in the electronic manufacturing services industry and enhancing its financial position.
About Avalon Technologies:
Avalon Technologies was founded over 20 years ago, when our entrepreneurial founders began assembling circuit boards in a small suburban household in Fremont, California in 1995. Since then, our operations have expanded significantly, and we now have a global manufacturing footprint and over 1900 employees as of March 31, 2022.
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