Avalon Technologies IPO opens today. Should you subscribe? GMP, key details here
2 min read . Updated: 03 Apr 2023, 08:12 AM IST
Premium- Avalon Technologies raises ₹389 crore from anchor investors ahead of its IPO
The initial public offering of Electronic manufacturing services firm Avalon Technologies Ltd, with a price a band of ₹415-436 a share, will open for public subscription from Monday, April 3, 2023 till Thursday, April 6, 2023.
The company on Friday said it has raised a little over ₹389 crore from anchor investors ahead of its initial share sale. The company has decided to allocate a total of 89.27 lakh equity shares to 24 funds at ₹436 apiece.
As per market observers, Avalon Technologies shares are commanding a premium (GMP) of ₹12 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.
“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.
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. Proceeds from the fresh issue would be used towards debt payment, funding working capital requirements and general corporate purposes.
Founded in 1999, Avalon is an end-to-end electronic manufacturing service solutions provider. It has 12 manufacturing units located across the US and India.
“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.