Avalon Tech’s Rs 865-cr IPO will open on third April

Avalon Technologies
March 27, 2023

Electronic manufacturing services company Avalon Technologies Ltd.’s Rs 865- crore original public immolation (IPO) will open for subscription on April 3. The establishment cut the IPO size to Rs 865 crore from Rs1,025 crore. The IPO, which will close on April 6, consists of a fresh issue of Rs 320 crore and an offer for trade (OFS) of shares worth Rs 545 crore. Kunhamed Bicha will offer shares worth up to Rs 131 crore for trade, TP Imbichammad Rs 16 crore; Mariyam Bicha over to Rs 10 crore and Anand Kumar and Luquman Veedu Ediyanam will each tender shares worth up to Rs75.50 crore while Seshu Kumar will offer Rs 65 crore worth of shares.

Anchor investors’ bidding will open on March 31. The allotment will be done on April 12 and shares will be credited to the accounts of successful stab on April 17, the establishment has said. The company will make its request debut on April 18. The company plans to use Rs 145 crore from the fresh issue to pay its debt and that of its material arm Avalon Technology and Services Pvt Ltd. As of January 2023, Avalon Technologies’ borrowings on the consolidated base stood at Rs324.12 crore.

The establishment also plans to use Rs 90 crore for working capital demand. As of January 2023, the aggregate quantum sanctioned by the banks to its establishment under the fund- grounded working capital installations amounted to Rs152.69 crore on a standalone base. JM Financial, DAM Capital counsels, IIFL Securities and Nomura Financial Advisory and Securities India are the lead directors to the issue. The reduction in the IPO size was a result of the pre-IPO placement carried out by Avalon Technologies, which took place between October 2022 and February 2023, and amounted to Rs 160 crore. The pre-IPO placement involved participation from investors similar as UNIFI Financial Private Limited, Ashoka India Equity Investment Trust Plc, and India Acorn Fund Ltd.

The establishment is a leading completely integrated Electronic Manufacturing Services (EMS) company with end- to- end capabilities in delivering box- figure results in India with a focus on high- value perfection- finagled products, the red herring prospectus said. It provides a full mound product and result suite, right from published circuit board (PCB) design and assembly to the manufacture of complete electronic systems (box figure) to global original outfit manufacturers (OEMs), including those in the US, China, The Netherlands and Japan.

The establishment has 12 manufacturing installations in India and the US. It specializes in manufacturing and furnishing design support for critical integrated assemblies, sub-assemblies, factors and enclosures for multiple assiduity verticals. For FY22, its total income increased to Rs851.65 crore from Rs695.90 crore a time ago. Net profit for the time stood at Rs68.16 crore against Rs23.08 crore in the former time. The EBITDA periphery for the time bettered to 11.6 percent from 9.58 percent in the former time.

About Avalon Technologies Limited

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Avalon Technologies

Continuous product and service innovation. With an expert staff and hundreds of successful deployments, Avalon’s focus is helping clients solve their unique IT business challenges with a refreshing, customer-friendly approach to projects of all sizes. Our team of professionals have years of experience in IT departments and understand real-world data center complexities. We are dedicated to knowing your business and anticipating your needs.

We accomplish this by:-Maintaining the highest-level certification with our partners – Nurturing positive pre and post-sale client relationships – Aggressively procuring hardware below market cost – Training your company to identify best practices and maximize data center investment


In 2002, Avalon was founded on a simple premise – IT professionals who have worked on both the data center and consulting side are better equipped to understand different IT environments and the optimal product configurations that work best in each. We are collaborators, authentic, approachable and highly responsive. Avalon is a proud Dell Platinum Partner. As a Dell Partner, Avalon has an inside track on the latest hardware, software and services that help eliminate IT complexity for customers while gaining greater efficiencies in performance and cost. It really can be that simple.