Electronic manufacturing services firm Avalon Technologies is all set to kick off its bids for its initial public offering on April 3, 2023 and it will last till April 6, 2023. The price band of the IPO has been set in the range of Rs 415-436 per piece.
Avalon Technologies is looking to raise Rs 865 crore via the IPO, of which Rs 320 crore will comprise fresh issuance of shares, while the remaining Rs 545 crore will be through an offer-for-sale by promoters and existing shareholders.
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The company’s plans to use the net proceeds from the fresh issue to fund debt payments, working capital requirements and general corporate purposes. Meanwhile, proceeds from the OFS will go to the selling shareholders and promoters.
It may be noted that promoters Kunhamed Bicha and Bhaskar Srinivasan will offload shares via the OFS route. From the promoter group, TP Imbichammad and Mariyam Bicha, along with other shareholders will also participate in OFS.
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Avalon Technologies has fixed the minimum lot size of the IPO at 34 equity shares, amounting to Rs 14,824 for the investors. Retail investors can bid for a maximum of 13 lots or 442 equity shares, amounting to Rs 1,92,712. HNIs can bid for a minimum of 14 lots and a maximum of 67 lots. Meanwhile, anchor investors will be able to bid for the issue on March 31.
The company has reserved 75 per cent of the shares for qualified institutional buyers, whereas 15 per cent of shares will be allocated to non-institutional investors. The remaining 10 per cent is for retail investors.
As of today, Avalon Technologies shares are trading on the grey market at a premium of Rs 25. The shares are likely to list on the BSE and NSE on April 18, 2023.
The book-running lead managers for the issue are JM Financial, DAM Capital Advisors, IIFL Securities and Nomura Financial Advisory & Securities (India).
Avalon Technologies was incorporated in 1999 and is a leading fully-integrated electronic manufacturing services company. It has end-to-end capabilities in delivering box-build solutions in India, focusing on high-value precision engineered products.
It offers a full stack product and solution suite, right from PCB design and assembly to the manufacture of complete electronic systems, to certain global original equipment manufacturers, including OEMs located in countries like China, Netherlands, United States and Japan.
Some of its offerings include PCB design and assembly, cable assembly and wire harnesses, sheet metal fabrication and machining, magnetics, injection molded plastics and end-to-end box build for electronic systems.
