Avalon Tech IPO : Avalon Technologies has filed an application with SEBI to raise Rs 1025 crore from the primary market through IPO. The IPO will have afresh issue of Rs 400 crore while there will be an offer for sale of Rs 625 crore. Through this offer for sale, the shareholders and promoters of the company will sell their stake.
Kunhamed Bicha will sell shares worth Rs 130 crore under OFS. On the other hand, Bhaskar Srinivasan will sell shares worth Rs 210 crore. On the other hand, TP Imbichammad will sell shares worth Rs 34 crore while Mariyam Bicha will sell 12 crore shares. On the other hand, each of Anand Kumar, Sareday Seshu Kumar and Luquman Veedu Ediyanam will sell 79.51 crore shares.
Of the proceeds from the IPO, Rs 150 crore will be used to pay off the company’s debt. As of June 2022, the company had a total debt of Rs 312.27 crore.Apart from this, Rs 150 crore from this IPO will be used to meet the working capital requirements of the company. The application filed for the IPO states that Avalon Tech can also do pre-IPO placements of Rs 80 crore.
JM Financial, DAM Capital Advisors, IIFL Securities and Nomura Financial Advisors and Securities India are the Book Running Lead Managers of the IPO. Avalon Tech is a leading fully integrated electronic manufacturing services company. The company sells its products to all companies in the US, China, Netherlands and Japan along with the domestic market. The company has 12 production units in India and the US.
The total income of the company has been Rs 851.65 crore in FY 2022 as compared to Rs 695.90 crore in FY 2021. The company had a profit of Rs 68.16 crore in the financial year 2022, while in the financial year 2021 the company’s profit was Rs 23.08 crore. The company’s EBITDA margin has increased from 9.58 per cent year-on-year to 11.6 per cent in 2022.
The company’s total order book has increased from Rs 857.87 crore on a year-on-year basis to Rs 1,039.15 crore in June 2022. The total number of customers of the company as of March 2022 was 81 while in March 2021 the company had 62 customers.