The Rs 865 crore initial share sale of Avalon Technologies will open for public subscription on April 3. The three-day Initial Public Offering (IPO) will close on April 6.
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The initial share sale of Rs 865 crore of Avalon Technologies, an electronic manufacturing services company, will open for public subscription on April 3. The three-day Initial Public Offering (IPO) will close on April 6 and the bidding for anchor investors will open on March 31. According to the Red Herring Prospectus (RHP) of the IPO, this is the information. The company’s Rs 865 crore IPO includes fresh issue of equity shares and Rs 545 crore through offer for sale (OFS) of shares by promoters and existing shareholders.
Why was the size of the IPO reduced?
Earlier, the company was considering raising Rs 1,025 crore through initial public offering. The IPO size has been reduced because Avalon has completed a total pre-IPO placement of Rs 160 crore. This includes primary or fresh issue of 80 crores and secondary share sale of 80 crores.
In the pre-IPO placement, the company has raised ₹60 crore from UNIFI Financial Pvt Ltd and ₹40 crore from Ashoka India Equity Investment Trust Plc and India Acorn Fund Ltd. After this, the total public issue is now Rs 865 crore.
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Where will the money from IPO be used?
The proceeds of the fresh issue will be used for payment of dues, funding working capital requirement and for general corporate purposes. In January, the company had received approval from capital markets regulator SEBI to launch an IPO. The company was started in the year 1999. It is an electronic manufacturing service solution provider. It has a total of 12 manufacturing units in America and India.
In the financial year 2022, the company’s revenue from operations is present at 840 crores. And the order book of the company as on June 30, 2022 is Rs 1,039 crore. The merchant bankers to the IPO include JM Financial, DAM Capital Advisors, IIFL Securities and Nomura Financial Advisory & Securities (India) Pvt Ltd.