Jobaaj Stories
Today’s market saw the opening of the Initial public offering of Avalon Technologies. The subscription will be open to the general public till 6th April 2023.
Earlier, the company had told about the anchor investment of around Rs. 389 crores they have received. Avalon Technologies got incorporated in 1999 in Chennai. The company deals in providing box-build solutions. They focus on high-value precision engineering products.
Avalon Technologies have its 12 manufacturing units located across India and the US. It is an end-to-end electronic manufacturing solutions provider company. The IPO got issued at a price band of Rs. 415-436, with a face value of Rs.2 per share.
The company intends to raise a total of Rs. 865 crores from the IPO, where Rs. 320 crore worth of shares is the fresh issuance, while the remaining Rs. 545 crores will be issued as an offer for sale(OFS) of equity shares.
But the question arises! Why is Avalon Technologies looking to issue the IPO?
The company plans to utilise the issued proceeds to pay off its Rs. 145 crore debts and for working capital of Rs. 90 crore.
As per the market evaluators, the shares of the company are dealing at a GMP of Rs.12. They are further said to be listed in the leading stock exchanges by 18th April 2023.
Most of the analysts believe that Avalon Technologies has a positive spectrum, and looking into the current market conditions the issue might expect an intriguing response.
- Charu Kapoor
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