Avana Electrosystems Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the Avana Electrosystems Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹59
Per ShareLot Size
2000 Shares
Minimum Investment
₹1,18,000
Issue Size
₹35.22 Cr
Face Value
₹10
Per ShareIPO Type
Book Building - SME
Retail Quota
35.06%
QIB Quota
49.7%
NII Quota
15.24%
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
Avana Electrosystems Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
100%
Promoter Holding (Post-Issue)
73.63%
Issue Type
Book Building - SME
ISIN
INE1KU201016
About the Company
The Company is a manufacturer of customised Control and Relay Panels ranging from 11kv to 220kv for Power System Monitoring, Control and Protection Applications Transmission Lines, Power Transformers, Bus Bar, Capacitor Bank, etc, for both indoor and outdoor usage, MV and LV Panels, Protection Relays and Substation Automation Systems. These panels are used across various sectors and industries to facilitate the transmission and distribution of electrical power.
Industry Overview
Power is among the most critical components of infrastructure, crucial for the economic growth and welfare of nations. The existence and development of adequate power infrastructure is essential for sustained growth of the Indian economy. The fundamental principle of India's power industry has been to provide universal access to affordable power in a sustainable way. India's power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro and nuclear power to viable non-conventional sources such as wind, solar, agricultural, and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required.
Company History
The Company was originally incorporated as a private limited company under Companies Act 1956, in the name and style of `Avana Electrosystems Private Limited' under the Companies Act, 1956, pursuant to a Certificate of Incorporation dated July 16, 2010 issued by the Registrar of Companies, Bengaluru, Karnataka (RoC). Pursuant to a special resolution passed by its shareholders in the Extra Ordinary General Meeting held on December 09, 2024, the Company has been converted into a public limited company and the name of our Company was changed to `Avana Electrosystems Limited' and a fresh Certificate of Incorporation dated December 17, 2024 has been issued to the Company by the Central Processing Centre.
Products & Services
- The Company is a manufacturer of customised Control and Relay Panels ranging from 11kv to 220kv for Power System Monitoring, Control and Protection Applications Transmission Lines, Power Transformers, Bus Bar, Capacitor Bank, etc.
Growth Strategy
- Integration of existing manufacturing units by relocating into one single expanded manufacturing unit.
- Expanding its reach by establishing regional offices in Western, Eastern and North-Eastern region parts of India.
- Expanding its dealer network across India.
- Tapping export markets by participating in international exhibitions and appointing overseas representatives and dealers.
- Broadening its product range to meet evolving market needs.
Customer Base
Wholesaler and Retailer
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 standalone 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 offer up to 59,70,000 equity shares of face value Rs, 10 each ("Equity Sharese") of Avana Electrosystems Ltd ( The "Company" or The "Issuer") for cash at a price of Rs.59 per equity share including a share premium of Rs.49 per equity share (The"Offer Price") Aggregating to Rs.35.22 Crores ("The Offer") Comprising of a fresh issue of up to 51,76,000 equity shares aggregating to Rs.30.54 Crores (The"Fresh Issue") and an offer for sale of up to 7,94,000 equity shares by the promoter selling shareholders ("Offer for Sale") aggregating to Rs.4.68 Crores of which up to 3,00,000 equity shares aggregating to Rs. 1.77 Crores will be reserved for subscription by market maker to the offer (The"Market Maker Reservation Portion"). The Offer less the market maker reservation portion i.e. Net offer of up to 56,70,000 equity share aggregating to Rs. 33.45 Crores (The"Net Offer"). The Fresh offer and the net offer will constitute 26.36% and 25.04% respectively of the post offer paid-up equity share capital of the company. Price Band: Rs. 59 per equity share of face value Rs. 10/- each. The floor price is 5.9 times of the face value of the equity shares. Bids can be made for a minimum of 4000 equity shares and in multiples of 2000 equity shares thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Strong customer relationships and wide customer base.
- Customisation & Multi - Product Portfolio.
- Quality Standard Certifications & Quality Tests.
- Experienced Promoters and Senior Management Team.
- Geographical reach.
- The company's intend to set up its integrated manufacturing unit on land taken on leave and license from Karnataka Industrial Areas Development Board (KIADB) and a part of the IPO proceeds is proposed to be utilised for the same. As per the lease agreement entered with KIADB, there are certain prescribed conditions and timelines pertaining to commencement and completion of work. The Company was required to start the commercial productions by June 01, 2020. The Company didn't start the commercial production by the given date. Subsequently, the company has been granted one year extension of time by KIADB for the commercial productions i.e. till May 22, 2026. In case the company fails to start its commercial production by May 22, 2026,the company may faces consequences of non-adherence of the terms and conditions of KIADB, which could have an adverse impact on its growth plans and the company's business and financial condition.
- The company has not identified any alternate source of funding to meet its capital expenditure requirements and hence any failures or delay on the company's part to mobilize the required resources or any shortfall in the Net Issue proceeds may delay the implementation schedule.
- The company derives a significant portion of its revenue from operations from limited number of customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for the company's products could adversely affect its business, results of operations, financial condition and cash flows. Any adverse change in the business relationship with one or more of the company's top 5 and top 10 customers, including a reduction in order volume, changes in contract terms, delayed payments, or termination, could materially and adversely affect its revenue, cash flows, and overall financial performance.
- A significant portion of its revenue from operations is generated from three states (Madhya Pradesh, Maharashtra and Karnataka). Any adverse development affecting the company's business operations in these regions could have a negative impact on its revenue and results of operations.
- The company depends on the Tender / Government Orders from State owned Power Distribution and Transmission Companies, Private Players engaged in panel manufacturing / EPC Contractors and Dealers for selling of the company's products. The company's significant dependence on Private Players for supply of its products may affect the company's revenue from operation and profits.