Electronics manufacturing services firm Avalon Technologies Ltd’s Rs 865 crore initial public offering (IPO) will open for subscription on April 3.
The company cut the IPO size to Rs 865 crore from Rs 1,025 crore. The initial public offering, which will close on April 6, consists of a new issue of Rs 320 crore and an offer for sale (OFS) worth Rs 545 crore.
Kunhamed Bicha will sell shares worth up to Rs 131 crore, TP Imbicammad up to Rs 16 crore, Mariyam Bicha up to Rs 10 crore, Anand Kumar and Luquman Veedu Ediyanam will each bid for shares worth up to Rs 75.5 crore, while Seshu Kumar will offer value 65 crore shares.
Anchor investor bidding will start on March 31.
The company said the rights issue would be completed on April 12, and the shares would be credited to the successful bidder’s account on April 17. The company will go public on April 18.
The company plans to use the new issue of Rs 145 crore to repay its debt and that of its physical arm, Avalon Technology and Services Pvt Ltd.
Avalon Technologies has consolidated borrowings of Rs 324.12 crore as of January 2023.
The company also plans to use Rs 90 crore for working capital requirements. The total amount sanctioned by banks against their companies under fund-based working capital facility alone amounts to Rs 152.69 crore as of January 2023.
JM Financial, DAM Capital Advisors, IIFL Securities and Nomura Financial Advisory and Securities India are the lead managers for the offering.
The Red Herring prospectus states that the company is a leading fully integrated electronics manufacturing services (EMS) company with end-to-end capabilities in providing box-build solutions in India, focusing on high-value precision-engineered products.
It serves global original equipment manufacturers (OEMs), including the United States, China, the Netherlands, and Japan.
The company has 12 manufacturing plants in India and the US. It specialises in the manufacture and design support of key integrated assemblies, subassemblies, assemblies and enclosures across multiple vertical industries.
For FY22, its total revenue rose to Rs 851.65 crore from Rs 695.90 crore a year earlier. Net profit for the year was Rs 68.16 crore compared to Rs 23.08 crore in the previous year. The EBITDA margin for the year improved to 11.6% from 9.58% in the last year.