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Avalon Technologies IPO Review – Date, Financials & More Details

 

Avalon Technologies IPO Review: Despite the skepticism of the market, some businesses have risen to the challenge of going public in a time of funding shortages and stagnant growth. We will discuss Avalon Technologies Limited’s upcoming initial public offering. The IPO’s subscription period will begin on April 3, 2023, and end on April 4, 2023. It intends to raise up to 865 crore rupees.

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In this article, we will look at Avalon Technologies IPO Review 2023 and analyze its strengths and weaknesses. Keep reading to find out!

about the company

Avalon Technologies is now 24 years old, having been established in 1999. In 1995, the company’s founders were putting together circuit boards in California. With over 1,900 employees, they are now an international manufacturer. They provide services for all aspects of electronics manufacturing.

Collins Aerospace, E-Infochips, The US Malabar Company, Meigit, Kyosan India, and Zoner Systems are among their customers.

In India and the United States, two major nations, they have 12 manufacturing facilities. The advertisers of the organization are Kunhamed Bicha and Bhaskar Srinivasan. In January of this year, SEBI granted them approval for the IPO.

One of India’s leading fully integrated manufacturers with an end-to-end operation to deliver box build solutions, according to the company’s DRHP From the design of PCBs (Printed Circuit Boards) to the box construction of electronic systems, they offer complete support to their clients. The company also offers cable assembly, machining, magnetics, plastic injection molding, and sheet metal fabrication.

Avalon is an ISO-certified business that is active in important sectors like power, railways, telecom, clean energy, and aerospace and defense, among others.

Financial Highlights

On the off chance that we take a gander at the monetary place of Avalon Innovations Restricted, we come to realize that their resources have developed from Rs. in March 2020, 449.65 crores In March 2022, 587.96 crores. Their revenue has also increased, from Rs., following a similar pattern. In March 2020, 653.15 crores. In March 2022, 851.65 crores.

As of November 2022, the organization’s income for FY 22-23 remained at Rs 596.75 crore. From Rs., his profits have increased. In March 2020, 12.33 crores. in March 2022, 68.16 crores The company’s FY22-23 profit as of November 2022 is estimated to be Rs 34.18 crore. It’s also important to note that the company’s borrowings have grown from Rs. in March 2020, 248.48 crores. on March 22, 294.05 crores.

Revenue Breakup of Avalon Technologies Ltd.

Avalon Technologies IPO Review - Revenue

(Source: RHP of the company)

company balance sheet

Balance sheet

(Source: RHP of the company)

Company’s profit and loss statement

Avalon Technologies IPO Review - Company Statement

(Source: RHP of the company)

Avalon Technologies IPO Review – Competitors

The following are the company’s competitors in India:

Dixon Technologies (India) Limited, Allin Electronics Limited, Amber Enterprises India Limited, Sira SGS Technology Limited, Kynes Technology India Limited, VVDN Technologies Private Limited, Bharat FIH Limited and SFO Technologies Private Limited

Strength

  • PCB design and analysis for new product development are made possible by the company’s integrated and well-diversified solution suite, which includes manufacturing of various components and PCB design and assembly. It is one of the few EMS businesses in India that offers one-stop services for everything from designing and analyzing PCBs to creating new products and then producing large quantities of them.
    By offering EMS services to clients all over the world across product and industry verticals, the company has established a barrier to entry for any newcomers to the sector.
    Throughout the long term the organization has differentiated and extended its client base and advanced its activities to take special care of different end use ventures across numerous item capacities.
    The company’s ability to maintain long-term relationships with its clients and achieve its goal of becoming a major player in the EMS sector are critical.
    The organization has laid out a worldwide dissemination impression with quality guidelines and high level assembling and gathering capacities. The company has 12 manufacturing facilities as of November 30, 2022, with locations in Karnataka and Tamil Nadu in India and California and Georgia in the United States.

weaknesses

  • The Company obtains its raw materials primarily from suppliers on a purchase-order basis. Any non-compliance by suppliers in meeting contractual obligations, increase in raw material costs or any disruption in the supply chain will have an adverse impact on business operations.
  • A major portion of the company’s revenue is earned from a few key customers. Losing a relationship with any of these customers can have a huge impact on the profitability of the business.
  • The Company’s business is spread across other countries and as a result, foreign exchange fluctuations will impact its earnings and profitability.
  • Failure to obtain or renew certain recognition, licenses and permits from government and regulatory authorities in a timely manner may affect the operations of the business.
  • The company is required to adhere to strict quality requirements and delivery schedules for its products at predetermined prices. Failure to do so will have an impact on the reputation of the company which in turn may affect its financial position.

Key IPO Information

Description Description
IPO size ₹865 crore
latest issue ₹320 crore
Offer for Sale (OFS) ₹545 crore
opening date April 3, 2023
Last date April 3, 2023
Face value ₹2 per share
price band ₹415 to ₹436 per share
big size 34 shares
Minimum Lot Size 1 (34)
maximum lot size 13 (442)
listing date April 18, 2023

Promoter: Kunhamed Bicha and Bhaskar Srinivasan

Book Running Lead Manager: JM Financial Limited, DAM Capital Advisors Limited, IIFL Securities Limited, Nomura Financial Advisory & Securities (India) Private Limited

Registrar of Offers: Link Intime India Private Limited

purpose of the issue

The net proceeds from the issue will be used for the following purposes:

  • For full or partial prepayment or repayment of outstanding borrowings availed by the Company and its subsidiary i.e. Avalon Technology & Services Pvt. Ltd.
  • financing the working capital requirements of the company
  • general corporate objectives

in closing

In this article, we looked at the details of Avalon Technologies IPO Review 2023. Analysts are divided on the IPO and its potential benefits. This is a good opportunity for investors to take a look at the company and analyze its strengths and weaknesses. That’s all for this post.

Are you applying for IPO? Let us know in the comments below.

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