From India Today Business Desk: Shares in electronic manufacturing services company Avalon Technologies plummeted as it made its initial public offering (IPO).
In the early hours of trading, shares of the company fell as much as 8.5 percent, suggesting that sentiment for IPOs remains weak amid weakness in domestic markets. Later in the day, the stock continued to fall.
Shortly after its listing, Avalon Technologies was trading flat at Rs.436 apiece but slipped further to Rs.391 by 1:15 p.m., down 10.44 percent.
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Avalon Technologies’ IPO opened for subscription on April 3rd and lasted until April 5th. The offering was 1.36 times oversubscribed, according to data available on the exchanges.
The IPO consisted of a new issue of shares valued at Rs 320 crore and an offer to sell valued at Rs 545 crore. It should be noted that the company reduced the size of its IPO from Rs 1,025 crore to Rs 865 crore due to pre-IPO placements.
Avalon Technologies’ subdued listing is evidence that domestic market investors remain cautious on new companies to be listed amid global market conditions, a looming banking crisis around the world and the possibility of a US recession.
Given the situation, several companies decided to pause and even withdraw their IPO plans. A few days ago, personal care startup Mamaearth put its IPO plan on hold, while clothing retailer FabIndia and jeweler Joyalukkas pulled their IPOs.
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