Avalon Technologies has submitted preliminary IPO papers to the Securities and Exchange Board of India (Sebi). The electronic manufacturing services provider expects to raise Rs 1,025 crore through the initial public offering, comprising a fresh issue of equity shares worth up to Rs 400 crore and an offer-for-sale of up to Rs 625 crore by promoters and existing shareholders.
The proceeds from the issue will be used towards debt payment, funding the working capital requirements and general corporate purposes. The company may also consider raising Rs 80 crore through a pre-IPO placement and if such a placement is undertaken, the size of the fresh issue will be reduced.
DAM Capital Advisors, JM Financial, Nomura Financial Advisory, IIFL Securities and Securities (India) Private Limited are the merchant bankers for this IPO.
Avalon was incorporated in 1999 and is an end-to-end electronic manufacturing service solutions provider. It has Zonar Systems Inc, Collins Aerospace, Kyosan India, e-Infochips, The US Malabar Company, Meggitt (Securaplane Technologies Inc) and Systech Corporation as some of its key clients.
The company also has 12 manufacturing units located across the US and India. As of the financial year 2021-22, its revenue from operations stood at Rs 840 crore with an order book worth Rs 1,039 crore as of June 30, 2022.
Meanwhile, Chennai-based engineering and design company Syrma SGS Tech is also going to launch its IPO on Friday (August 12). According to the red herring prospectus (RHP) of Syrma SGS Technology IPO, the public issue will remain open for bidding till August 18. The anchor book will be opened for a day on August 11.
Syrma is an electronics system design and manufacturing company with a focus on technology-based solutions and original design manufacturer business. The company’s business model starts from product concept design and focuses on every segment of the overall industry value chain.
Syrma SGS Technology through its pre-IPO placement has already raised Rs 110 crore for 37.93 lakh shares before filing the red herring prospectus. The said fundraising was at a price of Rs 290 per share, a 32 per cent premium to the issue price of Rs 220. The company has fixed a price band for the offer at Rs 209 and Rs 220 per share. The IPO comprises a fresh issue of Rs 766 crore and an offer-for-sale of 33.69 lakh equity shares.
Sebi gave its approval to initial public offerings (IPOs) through which 28 companies plan to raise about Rs 45,000 crore in April-July 2022. The period has seen 11 companies raising over Rs 33,000 crore through initial share sales.
In the current financial year so far, 11 companies have issued initial public offerings to garner Rs 33,254 crore. Out of this, a significant Rs 20,557 crore was raised by the public issue of Life Insurance Corporation of India (LIC). All these companies hit the primary market during April-May and not a single public issue was launched after May, suggesting a dry spell in the IPO market.
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