Avalon Technologies' Rs 865 Crore IPO To Kick Off On April 3

Bidding for anchor investors will open on March 31, according to the red herring prospectus (RHP)
Avalon Technologies' IPO
Avalon Technologies' IPO

The Rs 865 crore initial share sale of electronic manufacturing services firm Avalon Technologies will open for public subscription on April 3.

The three-day initial public offering (IPO) will close on April 6, and the bidding for anchor investors will open on March 31, according to the red herring prospectus (RHP).

The company's Rs 865 crore IPO comprises Rs 320 crore from the fresh issuance of equity shares and Rs 545 crore through an Offer For Sale (OFS) of shares by promoters and existing shareholders.

Earlier, it was looking to raise Rs 1,025 crore through the initial public offering.

The size of the IPO has been reduced as Avalon completed a total pre-IPO placement of Rs 160 crore, consisting of 80 crore of primary or fresh issuance and 80 crore secondary share sales.

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

Consequently, the net public issue now stands at Rs 865 crore.

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.

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.

As of fiscal 2022, its revenue from operations was at Rs 840 crore with an order book worth Rs 1,039 crore as of June 30, 2022.

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

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