Avalon Technologies IPO, opening April 3, raises ₹389 Cr from anchor investors. 10 important things to know
Home / Markets / IPO / Avalon Technologies IPO to open on April 3, raised €389 cr from anchor investors. 10 important things to know
3 min read . 03:37 PM IST
€320 crore and an offer to sell (OFS) aggregated to €865 crore.” title=”The IPO included a new issue worth €320 crore and an offer to sell (OFS) aggregated to €865 crores.”>The IPO included a reissue value €320 crore and an offer to sell (OFS) aggregated to €865 million.
- Avalon Technologies is one of the leading fully integrated EMS companies with end-to-end operations in providing box build solutions in India by revenue, with a focus on high quality precision engineered products. In the run-up to the IPO, the company raises €389 crore from anchor investors.
Avalon Technologies, a leading fully integrated Electronic Manufacturing Services (EMS) company, will begin its initial public offering (IPO) on April 3rd. The public offering is available for subscriptions until April 6th. In the run-up to the IPO, the company has raised around €389.25 crore from 24 anchor investors. After the IPO, the company is to be listed on the BSE and NSE.
Avalon Technologies, a leading fully integrated Electronic Manufacturing Services (EMS) company, will begin its initial public offering (IPO) on April 3rd. The public offering is available for subscriptions until April 6th. In the run-up to the IPO, the company has raised around €389.25 crore from 24 anchor investors. After the IPO, the company is to be listed on the BSE and NSE.
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Here are the top 10 takeaways from Avalon Technologies’ IPO:
1. Avalon has allotted and raised 8,927,751 shares to 24 anchor investors € 389.25 before the company’s planned IPO, at the upper price band of € 436 per common share (including a premium of € 434 per common share) with a par value of € 2 per share.
2. Among the anchor investors, some of the major names included Goldman Sachs Funds, HDFC Large and Midcap Fund, Franklin India Opportunities Fund, WhiteOak Capital Funds, IIFL Select Series II, Mahindra Manulife Funds and Nomura India Stock Mother Fund.
3. Of the total allocation of stock shares to anchor investors—about 2,981,698 stock shares (that is, 33.40% of the total allocation to anchor investors) were allocated to 5 domestic mutual funds through a total of 10 programs.
4. The IPO for non-anchor investors, ie qualifying institutional purchases (QIBs), non-institutional investors (NIIs) and retail investors (RII), will open on April 3-6.
5. The IPO included a reissue value €320 crore and an offer to sell (OFS) aggregated to €865 million.
6. The price range was at least €415 per share and max €436 per share.
7. Under the OFS, the selling shareholders of the company — the promoters are Kunhamed Bicha, Bhaskar Srinivasan, TP Imbichammad and Mariyam Bicha. Other shareholders are Anand Kumar, Sareday Seshu Kumar and Luquman Veedu Ediyanam.
8. From the total bookbuilding offer of 100%, 75% of the portion will be reserved for QIBs, 15% for NIIs and 10% for RIIs.
9. JM Financial Limited, DAM Capital Advisors Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers of the Offering. Link Intime India is the registrar of the issue.
10. The Company will not use the proceeds from OFS as they go to selling shareholders. However, Avalon plans to use new offering proceeds to repay all or a portion of certain outstanding debt of itself and one of its Avalon Technology and Services subsidiaries. In addition, the Company plans to use fresh capital proceeds to fund working capital needs and for general corporate purposes.
Avalon Technologies is a premier fully integrated Electronic Manufacturing Services (“EMS”) company with end-to-end operations in providing box build solutions in India by revenue, with a focus on high quality precision engineered products.
Avalon saw a significant increase in its customer base from 62 in FY21 to 81 in FY22 and increased its order book €11,902.46 million as of November 2022 onwards €9,182.32 million as of November 2021.
Its electronic manufacturing facilities comprise a total of 66 production lines consisting of 11 surface mount technology (“SMT”) lines, 12 through hole technology (“THT”) lines and 43 assembly lines.
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