Avalon Technologies IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Apr 18, 2023One of the popular methods of raising money on a large scale for a company is launching an IPO and issuing equity shares to the general public. This way, the company dilutes its capital and attains the advantages of listing shares on the stock exchange.
This year there have been, and there will be dozens of companies seeking the IPO door to raise funds from the public.
Avalon Technologies is one of them. The company submitted the DRHP papers with SEBI in August 2022. The Avalon Technologies IPO will consist of a fresh share issue and offer for sale.
In this Avalon Technologies IPO Review, you will get answers to all the queries related to this company and its IPO.
| Face Value | Rs 2 |
| Price Band | Rs 415 to Rs 436 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 34 Shares |
| Listing Date | Apr 18, 2023 |
| Offer for Sale | Rs. 545.00 Crore |
| Fresh Issue | Rs.320.00 Crore |
| IPO Size | Rs. 865.00 Crore |
| Tick Size | 1 |
Avalon Technologies IPO Overview
Avalon Technologies IPO comprises a Fresh Issue of equity shares aggregating up to Rs. 320.00 crores and an offer for the sale of equity shares aggregating up to Rs. 545.00 crores. Promoters and other company investors will be participating in the IPO and offloading their holdings in the company.
Further, as per the DRHP, the company may consider a pre-IPO placement of shares for up to Rs. 80 crores by way of preferential issue or right issue, or any other means as allowed by the applicable laws.
Avalon Technologies IPO Important Dates
| Events | Date |
| IPO Opening Date | Apr 3, 2023 |
| IPO Closing Date | Apr 6, 2023 |
| Basis of Allotment Finalization | Apr 12, 2023 |
| Refunds Initiation | Apr 13, 2023 |
| Credit of Shares to Demat Account | Apr 17, 2023 |
| Share Listing Date | Apr 18, 2023 |
Avalon recently filed the preliminary documents with the capital market regulator seeking its approval. The authority will look into the documents and affairs of the company and will approve or reject the IPO accordingly.
The company will be determining the Avalon Technologies IPO Dates after the IPO has been duly approved and will open the IPO to the public for subscription.
Avalon Technologies IPO Price, Size, Share Offerings
| Face Value | Rs.2 |
| Price Band | Rs 415 to Rs 436 |
| Offer for Sale | Rs.545.00 Crore |
| Fresh Issue | Rs.320.00 Crore |
| IPO Size | Rs.865.00 Crore |
Avalon Technologies IPO Size contains a fresh share issue and OFS where 320.00 crores will be realized through a fresh issue, and 545.00 crores will be raised through an offer for sale. The company will determine the price band, minimum lot size, and selling shareholders in consultation with the Book Running Lead Managers (BRLMs).
The face value of the offered shares is Rs. 2 each, and the Avalon Technologies IPO Price will be decided through the Book Building process.
Avalon Technologies IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 18 Apr 2023 | Rs 10 | NA | NA |
| 17 Apr 2023 | Rs 10 | NA | NA |
| 13 Apr 2023 | Rs 10 | NA | NA |
| 12 Apr 2023 | Rs 10 | NA | NA |
| 11 Apr 2023 | Rs 5 | NA | NA |
| 10 Apr 2023 | Rs 5 | NA | NA |
| 07 Apr 2023 | Rs 25 | NA | NA |
| 06 Apr 2023 | Rs 25 | NA | NA |
Grey Market is a parallel market to a stock exchange where the shares of a company are bid and offered among the traders through an unofficial trading chain.
In the Grey Market, the shares are traded before they list them on the stock exchanges. Grey Market Premium is the premium value at which the shares trade and works as an estimation for the issue price on the IPO opening.
Avalon Technologies IPO GMP will be reflected in the table as soon as there is trading in this market.
Avalon Technologies IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 3rd Apr | 0.00x | 0.01x | 0.17x | 0.03x |
| 2nd Day – 5th Apr | 0.00x | 0.05x | 0.48x | 0.10x |
| 3rd Day – 6th Apr | 3.77x | 0.43x | 0.88x | 2.34x |
| Shares Offered or Net Issue | 5,915,011 | 2,975,917 | 1,983,944 | 10,844,186 |
There are two situations in the subscription of an IPO – Oversubscription and under-subscription. In oversubscription, the company receives more applications than the number of shares, whereas, under subscription, the company receives lesser applications than the offered shares.
Every company has to attain the minimum subscription to complete the IPO journey successfully. Avalon Technologies IPO Subscription will also be put under such circumstances and executed according to the laws and regulations.
Avalon Technologies IPO Allotment Status
The Avalon Technologies IPO Allotment basis will be determined post-to-the IPO subscription in the market. Equity shares will be credited in the Demat Accounts of the bidders.
Avalon Technologies IPO Live Performance
Check out the Avalon Technologies IPO Performance at your fingertips anytime and anywhere. The IPO is not open yet; once it is public, investors will be able to check Avalon Technologies IPO Price easily.
Subscribe to Avalon Technologies IPO – Open Free Demat Account Now!
Avalon Technologies – Company Review
Incorporated in 1999, Avalon Technologies was established over two decades ago. The company is engaged in providing manufacturing services to customers.
The company offers a wide range of manufacturing services and has its operations situated in the US as well along with India.
Avalon Technologies serves numerous verticals, including Power, Rail, Aerospace, Healthcare, Telecom, Industrial, etc.
Further, it has also extended its operations to Clean Energy, Smart Products, Electric Mobility, and Digital Infrastructure.
Avalon Technologies presently has over 12 manufacturing facilities from where it is serving its esteemed customers across India and outside.
Products or Services
The vertically-integrated electronic manufacturing services have widely spread operations with global footprints and a strong presence.
With their capabilities and solutions, they undertake operations related to design, engineering, NPI, Volume Production, Life Cycle Management, System Integration, PCB Assembly, Cable & Wire Harness, Sheet Metal, Aerospace Metal, Machining, Magnetics, Plastics, and Supply Chain & Logistics.
The company is led by professional experts in the field and has built a strong team of over 1900 employees.
Promoters and Holding
The promoters of Avalon Technologies Limited are Kunhamed Bicha and Bhaskar Srinivasan.
The management of the company comprises:
- Kunhamed Bicha, in the position of Chairman and Managing Director
- Bhaskar Srinivasan, in the position of Non-executive Director
- Luquman Veedu Ediyanam, in the position of Non-executive Director
- Sareday Seshu Kumar, in the position of Non-executive Director
- Venkataramani Ananthramakrishnan, in the position of Independent Director
- Chandar Pattabhiram, in the position of Independent Director
- Byas Unnikrishnan Nambisan, in the position of Independent Director
- Sabitha Rao, in the position of Independent Director
- R M Subramanian, in the position of Chief Financial Officer
- Rajesh V, in the position of Company Secretary, Compliance Officer, and Legal Head
- Michael Robinson, in the position of Chief Operating Officer
Is Avalon Technologies good for Investment?
Avalon Technologies is one of the leading entities in the integrated Electronic Manufacturing Services segment. They offer manufacturing solutions to various entities across India and outside the country.
The company has a strong customer hold, and some of its key clients are Zonar Systems Inc, The US Malabar Company, Kyosan India, Collins Aerospace, eInfochips, Systech Corporation, Meggitt (Securaplane Technologies Inc), and many other known entities.
The company offers facilities from designing to manufacturing and delivering it to the customers. Avalon is delivering its services in countries like the US, China, Netherlands, etc.
Avalon Technologies Financial Statements
| Amount (in INR & Million) | |||
| 31-Mar-22 | 31-Mar-21 | Mar-20 | |
| Assets | 5,879.62 | 5,124.84 | 4,496.49 |
| Revenue | 8,516.50 | 6,958.97 | 6,531.48 |
| Expense | 7,852.09 | 6,670.68 | 6,378.53 |
| Profit After Tax | 681.64 | 230.82 | 123.26 |
As shown in the table, Avalon Technologies is a profit-making company with a good record of upward-moving revenues and profits.
The company’s total revenue for 2022, 2021, and 2020 were – Rs. 8,516.50 million, Rs. 6,958.97 million, and Rs. 6,531.48 million, respectively.
The company’s total revenue for 2022, 2021, and 2020 was – Rs. 681.64 million, Rs. 230.82 million, and Rs. 123.26 million, respectively.
The EPS of a company is an influencing force when deciding on investment in the company. Avalon’s EPS has gone in the past three years from Rs. 2.21 in March 2020 to Rs. 11.30 in March 2022.
| Earnings per Equity Share (in Million) | |||
| 31-Mar-22 | 31-Mar-21 | Mar-20 | |
| Basic & Diluted | 11.30 | 4.01 | 2.21 |
Avalon Technologies IPO Review
Avalon Technologies IPO is a combination of a Fresh Issue and an Offer for Sale. The company is eyeing to raise as much as Rs. 1,025 crores from the Initial Public Offerings (IPO).
Promoters who will be offloading their shares are Kunhamed Bicha and Bhaskar Srinivasan. Promoter Group selling shareholders are – T P Imbichammad and Mariyam Bicha.
Other Selling Shareholders are Anand Kumar, Sareday Seshu Kumar, and Luquman Veedu Ediyanam.
The Selling shareholders will be entitled to the proceeds from the fresh issue, and the company will be receiving the proceeds from the Fresh Share Issue.
Avalon Technologies will be utilizing the funds of the IPO towards payment for the company’s outstanding debts and its material subsidiaries, i.e., Avalon Technology and Services Private Limited, and for funding the company’s working capital requirements.
Avalon Technologies IPO Details
Here are a few more details you need to know before investing in Avalon Technologies IPO –
Avalon Technologies IPO Issue Object
Now, Avalon Technologies has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by our Company and one of our Material Subsidiaries, i.e. Avalon Technology and Services Private Limited (“ATSPL”);
- Funding the working capital requirements of our Company; and
- General corporate purposes.
Avalon Technologies IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- End–to–end integrated solutions, providing a “Stop Shop” for electronics and electro–mechanical design and manufacturing services.
- High entry barriers to business through our collective cross-industry experience, customer engagement capabilities and leading position in the high mix flexible volume product manufacturing segment.
- Well-diversified business leading to strong growth avenues
- Established relationships with a marquee customer base
- Global delivery footprint with high-quality standards and advanced manufacturing and assembly capabilities
- Strong financial performance, stable cash flows and visible growth profile
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-22 | 11.30 | 85.86 | 15.60 |
| 31-Mar-21 | 4.01 | 40.36 | – |
| Mar-20 | 2.21 | 25.19 | – |
Avalon Technologies IPO Lead Managers
Here is the list of Lead managers –
- JM Financial Limited
- DAM Capital Advisors Limited
- IIFL Securities Limited
- Nomura Financial Advisory and Securities (India) Private Limited
Avalon Technologies IPO Registrar to offer
Check out the details of the registrar here –
Link Intime India Private Limited
Address – C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai 400083, Maharashtra, India
Tel: +91 22 4918 6200
E-mail: Avalon Technologies.ipo@linkintime.co.in
Website: www.linkintime.co.in
Investor grievance E-mail: Avalon Technologies.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
Avalon Technologies IPO – Other Details
- Statutory Auditor – Varma & Varma
- Legal Counsel to the Company – Khaitan & Co
- Bankers to the Company – Bank of India, Indian Bank, HDFC Bank Limited, and Standard Chartered Bank
Avalon Technologies IPO – Conclusion
The Avalon Technologies IPO is set to hit the stock market and go public with its Rs. 865.00 crore IPO. The draft papers have been filed, and the in-principle approvals from BSE and NSE are in place. Now, it just awaits approval from SEBI and will be set off.
The draft papers state that the IPO will include a Fresh Issue and an Offer for Sale where the existing shareholders will be selling their shares and making a partial exit.
The objects of the IPO do not show any plans for growth or expansion. They are aiming to pay their outstanding debts and bring the company’s financial status to a better place.
As an investment, it can turn out to be a good choice in the long run as the company has stable profits and the EPS has grown to a higher point as compared to earlier.
To Subscribe to Avalon Technologies IPO – Open Demat Account Now!
Avalon Technologies IPO Review FAQs
Check out the FAQs on Avalon Technologies IPO –
What is the Issue Size of Avalon Technologies IPO?
The Company is making an initial public offer of 19,839,450 equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Avalon Technologies IPO?
The price band for this particular IPO ranges between Rs 415 to Rs 436. As far as the face value of the share is of concern, it is Rs.2 per share.
What is the Avalon Technologies IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on Apr 3, 2023, while the closing date is set for Apr 6, 2023.
What is the Avalon Technologies IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. The basis of Allotment finalization is on Apr 12, 2023, refund initiation is on Apr 13, 2023, credit of shares is on Apr 17, 2023, and share listing date is on Apr 18, 2023.
What is the Avalon Technologies IPO Listing Date?
Shares of this company shall be listed in the exchanges on Apr 18, 2023. The date, when the listing would be done, is stagnant on Apr 18, 2023.
Who is the Registrar of Avalon Technologies IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Avalon Technologies IPO?
Here are the promoters of this IPO – Kunhamed Bicha and Bhaskar Srinivasan. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Avalon Technologies IPO?
They have obtained the GMP of this IPO and it is Rs. 10. Further insights into the Kostak rate and subject to sauda or SS are as well included in this report.
Is Avalon Technologies IPO Good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Avalon Technologies Company?
They have the information on company financials, and according to that, they have the figures from the last few years to provide.
PAT for the financial year 2022 in Million is Rs. 681.64, 2021 is Rs. 230.82, and for 2020 is Rs. 123.26.
Featured Topics