Avalon Technologies IPO
IPO Details
- Open Date
03 Apr 2023
- Close Date
06 Apr 2023
- IPO Price Range
₹ 415 to ₹ 436
- IPO Size
₹ 865.00 Cr
- Listing Exchange
BSE, NSE
- Listing Date
18 Apr 2023
IPO Timeline
Avalon Technologies IPO Subscription Status
| Date | QIB | NII | Retail | TOTAL |
|---|---|---|---|---|
| 3-Apr-23 | 0.00x | 0.01x | 0.17x | 0.03x |
| 5-Apr-23 | 0.00x | 0.05x | 0.48x | 0.10x |
| 6-Apr-23 | 3.77x | 0.43x | 0.88x | 2.34x |
Last Updated: 07 April 2023 12:52 AM by 5Paisa
Avalon Technologies IPO opens on Apr 3, 2023, and closes on Apr 6, 2023. The issue entails fresh issuance of 7,339,450 equity shares and an offer for sale for 12,500,000 equity shares which aggregates the issue size to Rs. 865 cr. The company has set the lot size to 34 shares per lot and the price band is set at Rs. 415 to Rs. 436 per share. The issue will be listed on the exchanges on 18th April and the basis of allotment will happen on 12th April. JM Financial, DAM Capital Advisors, IIFL Securities, Nomura Financial Advisory and Securities are the lead book managers to the issue.
Objective of the Avalon Technologies IPO:
• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company and one of the Material Subsidiaries, i.e. Avalon Technology and Services Private Limited (ATSPL)
• Funding the working capital requirements of the Company
• General corporate purposes
Avalon Technologies IPO Video:
Avalon Technologies is one of the leading fully integrated Electronic Manufacturing Services (“EMS”) companies with end-to-end operations in delivering box build solutions in India in terms of revenue in Fiscal 2022, with a focus on high value precision engineered products.
It providesa full stack product and solution suite, right from printed circuit board (“PCB”) design and assembly to the manufacture of complete electronic systems (“Box Build”), to certain global original equipment manufacturers (“OEMs”), including OEMs located in the United States, China, Netherlands and Japan.
Their capabilities include PCB design and assembly, cable assembly and wire harnesses, sheet metal fabrication and machining, magnetics, injection molded plastics and end-to-end box build of electronic systems. They also specialize in manufacturing and providing design support for critical integrated assemblies, sub-assemblies, components and enclosures for multiple industry verticals.
The end-use industries it caters to include a mix of established and long product lifecycle industries, such as industrial, mobility and medical devices and high growth “sunrise” industries, such as solar, electric vehicles and hydrogen in the clean energy sector and digital infrastructure in the communications sector.
It is the only Indian EMS company with full-fledged manufacturing facilities in the United States, which gives it a unique competitive advantage in the North American markets (source: F&S Report). It has 12 manufacturing units located across the United States and India: one unit in Atlanta, Georgia, one unit in Fremont, California, seven units in Chennai, Tamil Nadu, one unit in Kanchipuram, Tamil Nadu and two units in Bengaluru, Karnataka.
Certain of the key customers include Kyosan India Private Limited, Zonar Systems Inc., Collins Aerospace, e-Infochips Private Limited, The US Malabar Company, Meggitt (Securaplane Technologies Inc) and Systech Corporation.
Check Out Web-Stories on Avalon Technologies IPO
Check Out Avalon Technologies IPO GMP
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Revenue | 840.7 | 690.5 | 641.9 |
| EBITDA | 97.5 | 66.1 | 64.5 |
| PAT | 68.2 | 23.1 | 12.3 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Total Assets | 588.0 | 512.5 | 449.6 |
| Share Capital | 1.6 | 1.6 | 1.5 |
| Total Borrowings | 294.1 | 295.3 | 248.5 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 13.9 | 5.5 | 65.7 |
| Net cash from / (used in) investing activities | -16.6 | -26.3 | -19.3 |
| Net cash flow from / (used in) financing activities | -20.8 | 28.0 | -42.3 |
| Net increase (decrease) in cash and cash equivalents | 0.0 | -0.5 | 0.1 |
Peer Comparison
| Name of the Company | Total Income (in Rs. crores) | Basic EPS | NAV Rs. per share | PE | RoNW% |
|---|---|---|---|---|---|
| Avalon Technologies Limited | 840.72 | 11.3 | 15.6 | NA | 85.86% |
| Dixon Technologies (India) Limited | 10,697.08 | 32.31 | 167.73 | 89.61 | 21.93% |
| Amber Enterprises India Limited | 4,206.40 | 32.41 | 514.7 | 59.5 | 6.54% |
| Syrma SGS Technology Limited | 1,266.65 | 5.25 | 41.57 | 49.91 | 13.04% |
| Kaynes Technology India Limited | 706.25 | 9.7 | 43.89 | 106.55 | 24.29% |
Strengths
• End-to-end integrated solutions, providing a “One Stop Shop” for electronics and electro-mechanical design and manufacturing services
• High entry barriers to business through the 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 avenue
• Global delivery footprint with high quality standards and advanced manufacturing and assembly capabilities
Risks
• Any increase in the cost of our raw material or components, delay, shortage, interruption or reduction in the supply of raw materials and major production inputs to manufacture the products may adversely affect our business,
• The company faces significant competitive pressures and inability to compete would be detrimental
• Dependent on certain customers for a portion of the revenues and any loss of these customers would dent the revenues
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FAQs
The price for the Avalon Technologies IPO is set at Rs. 415 - 436 per share
The Avalon Technologies IPO opens on 3rd April and closes on 6th April.
The IPO comprises of fresh issue of 7,339,450 equity shares and an offer for sale of 12,500,000 equity shares which aggregates the issue size to Rs. 865 cr.
The allotment date of Avalon Technologies IPO is set for 12th April
The Avalon Technologies IPO will be listed on 18th April
The Avalon Technologies IPO lot size is 34 shares. A retail-individual investor can apply for up to 13 lots (5564 shares or ₹192,712)
The net proceeds from the issue will be used for:
• Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company and one of the Material Subsidiaries, i.e. Avalon Technology and Services Private Limited (ATSPL)
• Funding the working capital requirements
• General corporate purposes
To apply for the IPO, follow the steps given below
• Login to your 5paisa account and select the issue in the current IPO section
• Enter the number of lots and price at which you wish to apply for
• Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
• You will receive a mandate notification to block funds in your UPI app
Avalon Technologies IPO is promoted by Kunhamed Bicha and Bhaskar Srinivasan.
JM Financial, DAM Capital Advisors, IIFL Securities, Nomura Financial Advisory and Securities are the lead book managers to the issue.
Contact Information
Avalon Technologies
Avalon Technologies Limited
B – 7, First Main Road,
MEPZ, Tambaram,
Chennai – 600 045
Phone: +9144 42220 400
Email: investorsrelations@avalontec.com
Website: http://www.avalontec.com/
Avalon Technologies IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: avalontec.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Avalon Technologies IPO Lead Manager
JM Financial Limited
DAM Capital Advisors Ltd
IIFL Securities Ltd
Nomura Financial Advisory And Securities (India) Pvt Ltd