Avalon Tech’s ₹865-crore IPO to kick off on 3 April: Check allotment, listing date

The ₹865-crore initial public offering (IPO) of electronic manufacturing services provider Avalon Technologies will open for public subscription on 3 April and will close on 6 April, 2023.

The bidding for anchor investors will open on 31 March, as per the red herring prospectus (RHP).

The company has trimmed the IPO size to ₹865 crore. Earlier, it was looking to raise ₹1,025 crore through the initial share sale.

The IPO consists of ₹320 crore from the fresh issuance of equity shares and ₹545 crore through an Offer For Sale (OFS) of shares by promoters and existing shareholders.

Reports said that Kunhamed Bicha will offer shares worth up to ₹131 crore for sale, TP Imbichammad ₹16 crore; Mariyam Bicha up to ₹10 crore and Anand Kumar and Luquman Veedu Ediyanam will each tender shares worth up to ₹75.50 crore while Seshu Kumar will offer ₹65 crore worth of shares.

The allotment will be done on 12 April and shares will be credited to the accounts of successful bidders on 17 April, the company stated. The firm will make its market debut on 18 April.

Why the issue size was reduced

The size of the IPO has been reduced as Avalon completed a total pre-IPO placement of ₹160 crore, consisting of 80 crore of primary or fresh issuance and 80 crore secondary share sales.

In the pre-IPO placement, the company garnered ₹60 crore each from UNIFI Financial Private Limited and Ashoka India Equity Investment Trust Plc and ₹40 crore from India Acorn Fund Limited.

Consequently, the net public issue now stands at ₹865 crore.

Proceeds from the fresh issue would be used towards debt payment, funding working capital requirements and general corporate purposes.

Avalon Tech had in January received capital markets regulator Sebi's go ahead to float the IPO. The company had filed its preliminary IPO papers with Sebi on August last year.

As of fiscal 2022, Avalon's revenue from operations was at ₹840 crore with an order book worth ₹1,039 crore as of 30 June, 2022.

JM Financial, DAM Capital Advisors, IIFL Securities and Nomura Financial Advisory and Securities (India) Private Limited are the merchant bankers for this IPO.

Shares of the company will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

With agency inputs