Avalon Technologies Ltd. :- About the company
Incorporated in 1999 at Chennai, Avalon Technologies is an end-to-end electronic manufacturing service solution provider. It has 12 manufacturing units located across the US and India. Its customers include global original equipment manufactures(OEMs), including OEMs located in China , Netherland and Japan. The company is one of the leaders in the segment in india in terms of revenue in Fiscal year 2022.
Avalon Technologies is among fully-integrated electronic manufaturing services (EMS) companies in india that can offer end-to-end capabilities for delivering box build solutions in india, focusing on high value precision engineered products. It has unique dellivery model, providing a full stack product and sulution OEMs.
The company’s capabilities include printed circuit board (PCB) design and assembly, magnetics, sheet metal fabrication anad machining, cable assembly and wire harnessing , box-build of electronic systems and injection moulded plastics. The company caters to many inidustries , including established long product lifecycle industries, as well as the high growth “sunrise” industries, such as solar and Electric Vechile sectors.
Avalon Technologies Ltd. IPO details :
The Initial Public offering (IPO) of Avalon Technologies Ltd. is set to open for subscription from Monday, April 03 , 2023 and will remain open till Thursday, April 6, 2023.
Avalon Technologies raises Rs. 389.25 crore via anchor book investor ahead of it’s initial share sales. The company has decided to allocate a total of 89.27 lakh quity shares to 24 funds at price of Rs.436 per share.
Avalon Technologies intends to raise Rs.865 Crore via IPO that coprise a fresh issuance of shares worth Rs.320 crore and an offer for sale (OFS) of equity shares worth Rs.545 crore by promoters and other shareholders.
Avalon Technologies IPO investment glance:
- Bidding Date :- April 3, 2023 to April 6 , 2023.
- Allotment Date :- April 12 , 2023.
- Initiations of Refunds :- April 13 , 2023.
- Credit of Shares to demat :- April 17, 2023.
- Listing Date :- April 18 , 2023.
- Face Value :- Rs. 2 per Share .
- Issue Price :- Rs. 415 to Rs. 436 .
- Lot size :- Retail 34 shares (Rs. 14,824)
- Listing at Group :- NSE , BSE
- Lead Manager :- JM Financial Ltd. , DAM Capital Advisors Ltd, IIFL Securities Ltd., Nomura Financial Advisory & Securities (India)
- Registrar :- Link Intime India Pvt. Ltd.
Avalon Technologies Ltd. IPO strengths & weakness :-
Strengths :
- It is a one-stop-shop for electronics and electro-mechanical manufacturing and design services offering end-to-end solutions.
- The business is well-diversified, leading to strong growth avenues.
- The company’s orderbook also increased consistently from Rs.504 crore in FY20 to Rs1,190 crore in FY22.
- The company’s total income increased from Rs.653 crore to Rs.851 crore, a CAGR growth of over 14%.
- Government initiatives like the PLI scheme and Make in India are providing to be beneficial for the business.
Weakness :
- The company heavily depends on a few customers for most of its revenue. For FY22, It earned over 64% of the revenue from its top ten clients.
- The company earns a significant portion of its revenue from exports. Hence, any foreign exchange fluctuation could impact the company’s earnings and profitability.
- The business requires certain licenses, accreditations, and permits from the government. Failure to obtain these can adversely impact operations.
- Operations of the company depend on timely and cost-efficient transportation and logistics. Prolonged disruptions may adversely affect the business operations.
- The manufacturing capabilities of the company are critical to its business. If these are disrupted, it will have an adverse effect on operations and the financial condition of the company.
Financial snapshot of Avalon Technologies Ltd. :-
| Particulars | FY-20 | FY-21 | FY-22 |
|---|---|---|---|
| Total Assets | Rs. 449.65 crore | Rs. 512.48 crore | Rs. 587.96 crore |
| Revenue | Rs. 642 crore | Rs. 690 crore | Rs. 841crore |
| Net Profit | Rs. 11.54 crore | Rs. 21.49 crore | Rs. 63.16 crore |
Avalon Technologies Ltd objective of issue :-
- Prepayment or repayment of all or a portion of certain outstanding borrowing availed by the Company and one of the material subsidiaries,i.e. Avalon Technology and Services Private Ltd.(ATSPL).
- Funding the working capital requirements of the company.
- General corporate purposes.
How to apply for the Avalon Technologies Ltd. IPO ?
If you are interested in this investment opportunity to apply for Avalon Technologies IPO, here are the steps that you need to follow :
- Log into your Upstox account,using your six-digit PIN.
- After logging in , click on “Discover”
- On the “Discover” tab, you will find the “Invest in IPO” section.
- Under the “Invest in IPO” section, look for the ‘Avalon Technologies IPO‘ tab and click on it.
- Now fill in all the required information, like ‘bid price’ and ‘lot size’.
- Confirm and click on “Apply”.
- Accept the mandate on your UPI app.