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The ₹865-crore public issue of Avalon Technologies saw only a tepid response from investors on Day 1 of the issue opening. The issue, which came at a price band of ₹415-436, will close on April 6. Investors can bid for a minimum of 34 equity shares.
The IPO received bids for 3.68 lakh equity shares against 1.14 crore shares on offer. While, the portion reserved for retail individual investors (RIIs) was subscribed 16 per cent, the quota for non-institutional investors (NIIs) was subscribed a mere 1 per cent and QIBs are yet to bid.
While 75 per cent of the offer is reserved for qualified institutional buyers (QIB), 15 per cent for non-institutional individual investors (NIIs), and the balance 10 per cent for retail investors.
Also read: Lock-in of pre-IPO allotted shares of 33 companies to end in April-July
Issue details
The IPO consists of a fresh issuance of shares worth ₹320 crore and an offer for sale (OFS) of equity shares worth ₹545 crore by promoters and other shareholders. The sellers included Kunhamed Bicha, Bhaskar Srinivasan, TP Imbichammad, Mariyam Bicha,Sareday Seshu Kumar, Anand Kumar, and Luquman Veedu Ediyanam.
₹436-cr from Anchor investors
As part of IPO process, Avalon Technologies, on Friday, decided to allot 89,27,751 shares to 24 anchor investors at the upper price band of ₹436 a share for ₹389.25 crore.
Also read: IPO activity to be subdued in first half of FY24, says Prime Database
The anchor investors included The Nomura Trust and Banking Co., Ltd as the Trustee of Nomura India Stock Mother Fund, Ashoka India Opportunities Fund, HDFC Large and Midcap Fund, Nippon Life India Trustee Ltd- A/C Nippon India Small Cap Fund, Goldman Sachs Funds – Goldman Sachs India Equity Portfolio, Neuberger Berman Emerging Markets Equity Fund, Neuberger Berman Emerging Markets Equity Fund, Hostplus Pooled Superannuation Trust Neuberger Australia PTY Limited, Aditya Birla Sun Life Insurance Company Limited, Franklin India Opportunities Fund, and WhiteOak Capital Flexi Cap Fund.
About Avalon Tech
Avalon Technologies, a Chennai-based electronic manufacturing services company, plans to use the proceeds of the fresh issue for repaying debts (₹145 crore) and working capital requirements (₹90 crore), besides general corporate purposes.
Avalon Technologies is a fully-integrated EMS company with end-to-end operations in delivering box-build solutions, with a focus on high-value precision-engineered products. It provides a full-stack product and solution suite, right from printed circuit board (PCB) design and assembly, to the manufacture of complete electronic systems.
Also read: The IPO market is expected to reach its next peak in 2026: Vishal Kampani
Its customers include global original equipment manufacturers (OEMs), including OEMs located in the United States, China, Netherlands, and Japan.
JM Financial, DAM Capital Advisors, IIFL Securities, and Nomura Financial Advisory and Securities (India) are the merchant bankers to the issue, while the registrar to the offer is Link Intime India.
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