Avalon Technologies IPO

Avalon Technologies is one of the top fully integrated Electronic Manufacturing Services (“EMS”) firms with end-to-end capabilities in delivering box build solutions in India, According to sales in Fiscal 2022 (source: F&S Report) with an emphasis on high value precision built goods. Avalon Technologies IPO will hit the stock market in November 2022.

About Avalon Technologies

They offer a full stack product and solution suite, from printed circuit board design and assembly to the production of complete electronic systems , to a select group of international original equipment manufacturers, including OEMs based in the United States, China, the Netherlands, and Japan.

They are confident that their customers will experience concrete advantages as a result of their end-to-end capabilities, including decreased manufacturing costs, enhanced supply chain management, and decreased inventory obsolescence.

Injection molded plastics, PCB design and assembly, cable assembly and wire harnesses, sheet metal fabrication and machining, magnetics, and end-to-end box building of electronic systems are among their specialties. Through a client servicing strategy, they have built close ties with several of its clients over time.

Business

For a variety of industry verticals, they specialize in producing & offering design help for essential integrated assemblies, sub-assemblies, components, and enclosures.

The end-use markets we serve are a combination of well-established, long-product lifecycle markets like industrial, mobility, & medical devices and fast-growing “sunrise” markets like solar, electric vehicles, & hydrogen in the clean energy sector & digital infrastructure in the communications sector.

Their strategy for developing new products often begins with client engagement at the component level. This enables them to progress up the value & chain with the customer by utilizing their completely integrated products, to become deeply ingrained with them from the creation of their product.

They have relationships with some of their major clients that date back more than seven years.

Solutions

They offer a distinctive global delivery approach that includes design and production capabilities in both India & US. They have a distinct competitive advantage in the North American markets because they are the only Indian EMS business with full-fledged manufacturing facilities there.

They have 12 production facilities spread out over India & US, including two in Bengaluru, Karnataka, one in Atlanta, Georgia, one in Fremont, California, seven in Chennai, Tamil Nadu, and one each in Kanchipuram & Tamil Nadu.

Due to their ability to take advantage of advantageous legislative initiatives like the Government of India’s “Make in India” program & offer clients local manufacturing services across multiple regions based on their needs, they are able to increase customer retention and produce goods more cheaply.

Avalon Technologies IPO

Avalon Technologies Limited, headquartered in Chennai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 1025 Crore on 29 July 2022.

The offer includes a fresh issue of INR 400 Crore and there is offer for sale (OFS) of INR 625 Crore by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement INR 80 Crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-22	31-Mar-21	31-Mar-20
Total Assets		587.96	512.48	449.65
Total Revenue		851.65	695.90	653.15
Loss After Tax		68.16	23.08	12.33

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	2.21	2.21	3
Financial Year 2021	4.01	4.01	2
Financial Year 2022	11.30	11.30	1
Weighted Average	7.36	7.36

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

Avalon Technologies limited feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the offer price:

• End-to-end integrated solutions that offer a “One Stop Shop” for manufacturing and design services for electronics and electro-mechanical components.
• Due to our combined cross-industry experience, customer engagement skills, and dominant position in the high mix flexible volume product manufacturing area, we have significant entry barriers to business.
• Well-diversified firm with lots of room for expansion.
• Developed connections with a prestigious consumer base.
• High quality standards, innovative production, and assembly skills, and a global delivery footprint.
• Strong financial results, consistent cash flows, and a clear growth trajectory.

Avalon Technologies Peer Comparison

S. No.	Face Value	Company Name	PE
1	2	Dixon Technologies Limited	119.91
2	10	Amber Enterprises Limited	73.52

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the NSE on August 04, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.

Avalon Technologies IPO Details

IPO Opening Date	November 2022
IPO Closing Date	November 2022
Issue Type	Book Building
Face Value	2 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	1025 Crore
Fresh Issue	400 Crore
Offer for Sale	625 Crore

Avalon Technologies IPO Date

Avalon Technologies Limited IPO opening date is November 2022, and the closing date is November 2022. The Avalon Technologies issue may list in November 2022.

IPO Opening Date	November 2022
IPO Closing Date	November 2022
Basis of Allotment Date	November 2022
Initiation of Refunds	November 2022
Credit of Shares to Demat Account	November 2022
IPO Listing Date	November 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Avalon Technologies India Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Avalon Technologies IPO.

Avalon Technologies IPO GMP

Avalon Technologies Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022
November 2022

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Avalon Technologies Limited IPO Review

Avalon Technologies Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Avalon Technologies IPO is good or bad.

Avalon Technologies Limited IPO Risk

• Their factories are essential to their operations. Their business, operational results & financial condition would be materially harmed by any interruption to the ongoing operations of their manufacturing facilities.
• Avalon Technologies’s activities, financial situation, operational results and Business could all be negatively impacted by the COVID-19 pandemic or a comparable public health hazard.
• They may be impacted by any industry disruptions since the markets in which their customers compete are characterized by sectors peculiar to the industries they serve, their frequently changing preferences, and other relevant factors like decreasing production costs.
• Due to the nature of their business, they are subject to a number of risks that could considerably and negatively impact their Business, Cash flow financial situation and operational results.

Other Threats

1. Avalon Technologies’s line of work necessitates that they seek and renew a number of accreditations, licenses, and permits from governmental and regulatory agencies, particularly those related to quality standards, and doing so in a timely manner may have a negative impact on their ability to conduct business.
2. They risk paying considerable costs as a result of having to meet the demanding quality standards and delivery deadlines at set prices for their items.
3. The contracts and/or purchase orders they sign into will have an impact on their reputation, financial conditions, cash flows and results of operations.
4. Their economic and operational outcomes could be negatively impacted by a protracted outage if timely, cost-effective transportation and other logistical facilities are not readily available.

Avalon Technologies Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Avalon Technologies IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Avalon Technologies Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
November 2022	1
November 2022	2
November 2022	3

Avalon Technologies Limited Management

The establishment of their firm by Kunhamed Bicha and Bhaskar Srinivasan, who have more than 20 years of combined EMS industry expertise, was crucial to the expansion of their company.

They also have a diverse board of directors, which is strengthened by a capable management team with proven track records in the EMS industry.

Their senior management team, which consists of Arjun Balakrishnan, Michael Robinson, Shamil Bicha, OJ Sathish, Savita R Ganjigatti, & Kesavan P, has extensive experience and has worked with us for a while.

Additionally, their Chief Financial Officer, R M Subramanian, has substantial experience and has been working with them since 2019.

Their ability to seize market opportunities is also made possible by their knowledgeable & committed management team.

Avalon Technologies Limited‘ Promoters

• Kunhamed Bicha
• Bhaskar Srinivasan

Principal Shareholder’s Holding

Pre Issue Share Holding	71.81%
Post Issue Share Holding

Avalon Technologies Limited Prospectus