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Electronic manufacturing services firm Avalon Technologies fixed a price band of 415-436 a share for its 865-crore initial public offering (IPO). The three-day issue will be open for public subscription on Monday, April 3 and close on April 6, 2023 while bidding for anchor investors will open on Friday, March 31.

As per market observers, Avalon Technologies shares are commanding a premium (GMP) of 15 in the grey market today. The shares of the company are expected to list on the leading stock exchanges BSE and NSE on Tuesday, April 18, 2023.

Avalon Technologies IPO comprises 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.

Avalon Technologies is an end-to-end electronic manufacturing service solutions provider with client list, including Kyosan India, Zonar Systems Inc, Collins Aerospace, eInfochips, The US Malabar Company, Meggitt (Securaplane Technologies Inc), Systech Corporation. Kunhamed Bicha and Bhaskar Srinivasan are the promoters of the company.

The company has 12 manufacturing units spread across the US and India, offering a wide range of services from cable assembly and wire harnesses to sheet metal fabrication, machining, magnetics, and injection moulded plastics.

“Compared to its competitors in the industry, the company has an impressive PAT margin. The IPO valuation for Avalon Technologies, based on the FY22 figures, is 45x PE post a fresh issue, which is similar to the market average. It will be intriguing to observe the response that the company receives given the current unsettled market conditions," said Abhay Doshi of UnlistedArena.

“Although the overall outlook for Avalon Technologies IPO is positive, investors should be cautious given the current market conditions. The electronics manufacturing industry is known for its volatility, and raw material costs may adversely affect the business. Investors should carefully evaluate the company's performance, financial health, and growth prospects before investing in the IPO," said Krishna Raghavan- Founder at Unlistedkart.

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Updated: 30 Mar 2023, 12:54 PM IST
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