Avalon Technologies Limited IPO Review.
Founded in 1999, Avalon is a leading end-to-end electronic design and manufacturing solution company. They are involved right from the prototype/concept stage to undertaking large-scale production on behalf of OEMs.
Through a unique global delivery model, Avalon offers a full stack product and solution suite, right from printed circuit board (PCB) design and assembly to the manufacture of complete electronic systems (Box Build), to certain global original equipment manufacturers (OEMs), including OEMs located in countries like China, Netherlands, United States, and Japan.
They specialize in manufacturing critical integrated assemblies and components like printed circuit boards (PCB), cable assembly and wire harnesses. They have 12 manufacturing units across the USA and India.
Avalon Technologies’ Rs 865 cr public offer opened for subscription today. The price band is fixed at Rs 415-436 per share.
The public offer is a mix of fresh issue and sale by existing investors. They will use the IPO proceeds (Rs 320 cr) mainly to repay outstanding loans. Meanwhile, select promoters will trim their holdings through the Offer for Sale (OFS) portion.
- Revenue: Rs 841 cr; +22% YoY
- EBITDA: Rs 98 cr; +48% YoY
- EBITDA Margin: 11.6% vs 9.6% YoY
- PAT: Rs 68 cr; +3x YoY
We recommend to apply in this IPO for long-term as the company has strong fundamentals, high entry barriers plus benefits from GOI’s Make In India.
FWIW, the stock may list at a 7% premium to its issue price, according to grey market data.