The initial public offer (IPO) of Avalon Technologies received bids for 2,53,32,856 shares as against 1,14,63,854 shares on offer. The issue was subscribed 2.21 times.
The Qualified Institutional Buyers (QIBs) category was subscribed 3.57 times. The Retail Individual Investors (RIIs) category was subscribed 0.84 times. The Non Institutional Investors (NIIs) category was subscribed 0.41 times.
The issue opened for bidding on Monday (3 April 2023) and it closed on Thursday (6 April 2023). The price band of the IPO was fixed at Rs 415-436 per share.
The issue comprised offer for sale of equity shares aggregating to Rs 545 crore and fresh issue of equity shares amounting to Rs 320 crore.
The offer for sale comprises sale of equity shares aggregating to Rs 131 crore by Kunhamed Bicha; Rs 172 crore by Bhaskar Srinivasan, Rs 16 crore by T P Imbichammad and Rs 10 crore by Mariam Bicha, the promoter and promoter group selling shareholders. On post issue expanded equity at the upper price band, the holding of other selling shareholders will be 12.19%.
Of the net proceeds from fresh issue, the company proposes to utilize Rs 145 crore toward prepayment and repayment of certain outstanding borrowings and Rs 90 crore towards funding the working capital requirements of the company. The balance is for general corporate purposes.
Avalon Technologies is one of the leading fully integrated electronic manufacturing services companies, with end-to-end operations in delivering box build solutions in India, with a focus on high value precision engineered products.
Through its unique delivery model comprising design and manufacturing capabilities across both India and the United States, it provides a full stack product and solution suite, right from printed circuit board design and assembly to end-to-end box build of electronic systems, to certain global original equipment manufacturers.
Other capabilities of the company include cable assembly and wire harnesses, sheet metal fabrication, machining, magnetics and injection molded plastics.
The company reported a net profit of Rs 34.19 crore and net sales of Rs 584.79 crore for the eight months ended on 30 November 2022.
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