Avalon Technologies Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹436
Per ShareLot Size
34 Shares
Minimum Investment
₹14,824
Issue Size
₹865 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
10%
QIB Quota
75%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Avalon Technologies Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
53.38%
Issue Type
Book Building
ISIN
INE0LCL01028
About the Company
Avalon Technologies Limited is one of the leading fully integrated electronic manufacturing services 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. Through a unique global delivery model, the company provides a full stack product and solution suite, right from printed circuit board design and assembly to end-to-end box build of electronic systems, to certain global original equipment manufacturers. Its other capabilities include cable assembly and wire harnesses, sheet metal fabrication, machining, magnetics and injection molded plastics.
Industry Overview
The EMS sector is a sizeable industry globally and in India. While the EMS market in India was valued at Rs. 1,469 billion (US$20 billion) in Fiscal 2022 and is expected to grow at a CAGR of 32.3% to reach a value of Rs. 4,502 billion (US$60 billion) in Fiscal 2026, the EMS market in the United States was valued at approximately US$140 billion in 2021 and is expected to grow at a CAGR of 6.1% to reach US$188 billion by 2026. India has a unique competitive advantage due to low labour costs, a diverse product offering and geographical diversification.
Company History
Avalon Technologies Limited was incorporated as Avalon Technologies Private Limited, a private limited company, at Chennai under the Companies Act, 1956 on November 3, 1999, and was granted the certificate of incorporation by the RoC. Subsequently, the name of the Company was changed to Avalon Technologies Limited pursuant to a special resolution passed by the shareholders of the Company on July 6, 2022, and a fresh certificate of incorporation dated July 29, 2022 was issued by the RoC consequent upon change of name upon conversion into a public limited company under the Companies Act, 2013.
Products & Services
- The Company is one of the leading fully integrated electronic manufacturing services companies with end-to-end operations in delivering box build solutions in India.
Growth Strategy
- Sustaining and catering to high growth sunrise industry sectors such as clean energy and emerging communication technologies
- Consolidate and expand its position in global markets for existing industry verticals
- Creating high growth opportunities for its existing offerings
- Focus on expanding its local manufacturing presence in its largest markets, namely the United States and India by leveraging country specific government policy initiatives
- Continue to build on hybrid model of delivery leveraging access to high value market and low cost production base
- Invest in expanding its technological capabilities and manufacturing capacities
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 19,839,446*** equity shares of face value of Rs. 2 each ("Equity Shares") of Avalon Technologies Limited (The "Company" or the "Company" or the "Issuer") for cash at a price of Rs. 436 per equity share (including a share premium of Rs. 434 per equity share) (the "Offer Price") aggregating to Rs. 865.00 crores*** (the "Offer") comprising a fresh issue of 7,339,449*** equity shares by the company aggregating to Rs. 320.00*** crores (the "Fresh Issue") and an offer for sale of 12,499,997*** equity shares aggregating to Rs. 545.00*** crores comprising an offer for sale of 3,004,587*** equity shares aggregating to Rs. 131.00*** crores by Kunhamed Bicha, 3,944,954*** equity shares aggregating to Rs. 172.00*** crores by Bhaskar Srinivasan, (the "Promoter Selling Shareholders"), 366,972*** equity shares aggregating to RS. 16.00*** crores by T P Imbichammad, 229,357*** equity shares aggregating to Rs. 10.00*** crores by Mariyam Bicha ("Promoter Group Selling Shareholders"), 1,731,651*** equity shares aggregating to Rs. 75.50*** crores by Anand Kumar, 1,490,825*** equity shares aggregating to Rs. 65.00*** crores by Sareday Seshu Kumar, 1,731,651*** equity shares aggregating to Rs. 75.50*** crores by Luquman Veedu Ediyanam (the "Other Selling Shareholders", and together with the promoter selling shareholders and promoter group selling shareholders, the "Selling Shareholders" and such offer for sale of equity shares by the selling shareholders, the "Offer for Sale***"). The company, in consultation with the brlms, has undertaken two pre-ipo placements of equity shares aggregating to approximately Rs. 30.00 crores and approximately Rs. 50.00 crores, respectively. The size of the fresh issue has been reduced by Rs. 80.00 crores pursuant to the pre - ipo placements. Accordingly, the revised fresh issue size aggregates to Rs. 320.00 crores. ***Subject to finalisation of basis of allotment. Bids can be made for a minimum of 34 equity shares and in multiples of 34 equity shares thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- End - to - end integrated solutions, providing a "One Stop Shop" for electronics and electro - mechanical design and manufacturing services.
- High entry barriers to business through its collective cross-industry experience, customer engagement capabilities and leading position in the high mix flexible volume product manufacturing segment.
- Well-diversified business leading to strong growth avenues.
- Established relationships with marquee customer base.
- Global delivery footprint with high quality standards and advanced manufacturing and assembly capabilities
- Its manufacturing facilities are critical to the business. Any disruption in the continuous operations of its manufacturing facilities would have a material adverse effect on its business, results of operations and financial condition.
- The company source its raw material from suppliers, primarily on purchase order basis, who may not perform their contractual obligations in a timely manner, or at all. Any increase in the cost of its raw material or components, delay, shortage, interruption or reduction in the supply of raw materials and major production inputs to manufacture the company products may adversely affect its business, results of operations, cash flows and financial condition.
- The current and continuing impact of the COVID-19 pandemic, or a similar public health threat, could adversely affect its business, financial condition and results of operations.
- The markets in which its customers compete are characterized by sectors specific to the industries which the company cater to, and their rapidly changing preferences and other related factors including lower manufacturing costs and therefore as a result its may be affected by any disruptions in the industry.
- The global nature of its operations exposes it to numerous risks that could materially adversely affect its financial condition and results of operations.