Avalon Technologies IPO

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.

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