Are you looking for a way to invest in the future of the electronics industry? If so, you may want to consider investing in Avalon Technologies Limited's upcoming initial public offering (IPO). The company is set to hit the market on April 3, 2023 and close on April 6, 2023. In this blog post, we will provide a comprehensive review of the Avalon Technologies IPO, including the price band details, market lot, allotment and listing dates, and promoter holding. We will also provide a review of the brokerage firm's opinion on the IPO. So, if you want to get in on the ground floor with Avalon Technologies, this blog post is for you!
Avalon Technologies IPO Review (Apply or Not)
Avalon Technologies Limited is one of the leading Vertically-Integrated Electronic Manufacturing Services (“EMS”) companies with a Global Manufacturing footprint with 1900+ employees as on 31st March 2022. Avalon is proposing to raise ₹1,025 crores via IPO that comprises fresh issue of ₹400 crores and offer for sale up to ₹625 crores of ₹2 each. With the IPO set to hit the market on April 3, 2023, it is important to consider whether investing in Avalon Technologies is a good idea or not.
Investing in an Initial Public Offering (IPO) requires a thorough analysis of the company’s fundamentals and prospects. A comprehensive review of Avalon Technologies will be advantageous for potential investors when considering whether or not to apply for the offering. The company has established itself as one of the leaders in its segment in India in terms of revenue during Fiscal 2022. This gives confidence that this offering should be able to attract investors who are looking for long-term stability and growth from their investments.
The business model used by Avalon Technologies largely focuses on enterprise customers from Fortune 500 companies who require customized electronic manufacturing services such as Printed Circuit Board Assembly (PCBA), Wire Harness Assembly, and Cable Assembly services among others. In addition, they also provide testing services such as Pre-Shipment Inspection (PSI) and Environmental Stress Testing (EST). Their customer base includes some prestigious names like Apple Inc., Samsung Electronics Co., Ltd., Lenovo Group Limited, Microsoft Corporation and Amazon Inc., among others. This clearly reflects strong brand recognition which further increases investor confidence towards this offering.
Avalon Technologies have also recently made significant investments into their product portfolio which include Automated Optical Inspection (AOI), Solder Paste Inspection (SPI) equipment and Intrusion Detection System (IDS). This move diversifies their product portfolio beyond just EMS services which means they can now offer more sophisticated solutions tailored to their customers' needs without compromising on quality or service levels. These developments further solidify investor confidence towards this offering since it demonstrates the company's commitment towards providing innovative products & solutions at competitive prices with consistent service quality standards across all their operations worldwide.
In conclusion, it appears that investing in Avalon Technologies IPO could potentially be profitable for investors given its current financial position, market presence & customer base along with promising product innovations & technological advancements within its field of expertise. However, potential investors must thoroughly assess all available information before making any final decisions about applying for this offering or not.
Brokerage Firm IPO Review
The Avalon Technologies Limited IPO is one of the most anticipated IPOs of 2023, and many brokerage firms are taking notice. Several leading independent research and brokerage firms have published their reviews of the upcoming IPO. Overall, the reviews are favorable, highlighting Avalon’s strong presence in the Electronic Manufacturing Services (EMS) market, solid financials and experienced management team.
According to research from Motilal Oswal Financial Services Ltd., “Avalon Technologies Limited has an established track record of providing high-quality services to its customers and enjoys a sizable market share in its segment. Its balance sheet is expected to be debt-free post IPO with no further capital infusion requirement for any foreseeable future growth plans.” The report also points out that Avalon’s revenue CAGR over 2017-2022 stands at 17% while EBITDA margin has improved from ~2% in FY17 to ~11% in FY22E.
Another leading firm, ICICI Securities Ltd., believes that “the company has been able to generate a healthy return on equity (RoE) despite operating in a highly competitive industry and continuously investing heavily in technological capabilities like automation and artificial intelligence as well as improving operational processes." The report also highlights how Avalon’s RoEs have remained consistently above 15%.
Kotak Securities Ltd., another prominent brokerage firm, notes that “Avalon Technologies Limited is a leader in the EMS space with significant scale of operations which it has been able to sustain through prudent capital allocation strategies over the years. This coupled with strong customer relationships bodes well for future growth prospects." According to Kotak's research, Avalon has grown steadily over the past few years with revenue CAGR growing at 15%.
In conclusion, all three brokerages are bullish on the upcoming Avalon Technologies Limited IPO. They point out several positives such as strong customer relationships, solid financials, experienced management team and prudent capital allocation strategies as reasons for their optimism about this offering. As such investors looking into this IPO should consider these positive factors when making their decision whether or not to invest in this offering
Avalon Technologies IPO Date & Price Band Details
Avalon Technologies Limited is all set to launch its much-awaited IPO on April 3, 2023 and close it on April 6, 2023. The price band for the IPO has been set at ₹2 per equity share with a minimum bid lot of 400 shares and in multiples of 400 shares thereafter. The total size of the issue stands at ₹1,025 crores which includes a fresh issue of ₹400 crores and an offer for sale up to ₹625 crores. The retail quota is 10%, QIB is 75%, and HNI is 15%.
The pricing structure makes this IPO attractive to both institutional investors as well as retail investors due to its relatively low risk profile given Avalon's strong presence in the EMS market, solid financials and experienced management team. Additionally, the debt-free balance sheet along with their customer relationships, capital allocation strategies, and revenue CAGR of 15% make this IPO even more attractive.
Furthermore, Avalon Technologies Limited has also appointed ICICI Securities Limited (ICICI Securities), Kotak Mahindra Capital Company Limited (Kotak), SBI Capital Markets Limited (SBI CAPITAL MARKETS) as Book Running Lead Managers to manage the issue. The company will also use BSE & NSE platforms for listing their equity shares after the successful completion of their IPO process.
All these factors make this an attractive investment opportunity for investors looking for long-term returns from a diversified portfolio or those who are looking for short-term gains through quick appreciation in stock prices upon listing.
Avalon Technologies IPO Market Lot
The Avalon Technologies IPO market lot has been set at a minimum of 10 equity shares, with investors being able to purchase up to 13 lots (130 equity shares). This lot size is attractive for both small and large investors due to its low risk profile. The maximum application size allowed by the company is ₹2 lakhs per application, which means that an investor can apply for a maximum of 100 equity shares at the face value of ₹2 each. Investors should note that the minimum application amount is ₹20,000, so if you are looking to invest in smaller amounts then you may have to spread your application across multiple applications.
The company has kept a reservation quota for retail investors and employees at 10%, as well as 15% for qualified institutional buyers (QIBs). Retail investors will be eligible for a discount on the issue price if they apply in the retail category. This discount will further increase the attractiveness of this IPO for small and medium-sized investors who are looking to benefit from potential long-term returns or short-term gains.
In order to ensure fair allotment of shares during subscription period, Avalon Technologies has employed an electronic bidding system through designated stock exchanges such as BSE and NSE. Investors must submit their bids on these exchanges during the allotted time frame before the closure of the issue period. The allotment list will be declared within two working days after closure of the issue period and successful applicants will receive their share certificates within 15 days from date of allotment.
Overall, Avalon Technologies' IPO market lot makes it attractive for both large and small investors looking to benefit from potential long-term returns or short-term gains. With its low price band and reservation quotas in place, there is sure to be strong demand during this upcoming IPO launch which could lead to substantial gains upon listing day.
Avalon Technologies IPO Allotment & Listing Dates
Avalon Technologies Limited is expected to announce the allotment of its IPO on April 9, 2023, with the listing date scheduled for April 12, 2023. The company has set a reservation quota for retail investors and employees at 10%, as well as 15% for qualified institutional buyers (QIBs).
The allotment process follows a strict timeline and is conducted in two phases – the bidding phase and the allotment phase. During the bidding phase, investors submit their bids with their choice of number of lots and price per share. After this, Avalon Technologies will decide which bids to accept based on factors such as market demand and supply. This decision will be announced in the form of an Allotment Notice that lists out all successful bidders along with the number of lots allotted to them.
Successful applicants will then receive communication from their respective registrars or brokers regarding payment instructions for shares allotted to them. Once payments are received, Avalon Technologies will credit shares into demat accounts within two working days after closure of the issue period. Investors can check their account statements or contact their respective registrars/brokers to verify whether they have received shares against their applications.
On April 12th, 2023 Avalon Technologies Limited is expected to list on both BSE and NSE exchanges simultaneously at 9:15 am IST. On listing day, stock prices are determined by market forces such as demand-supply dynamics and overall market sentiment towards the company’s fundamentals. Investors can also look forward to stock splits and bonus issues announced by companies post-listing due to strong performance or other reasons related to capital structure management.
Overall, Avalon Technologies' IPO allotment process is transparent and efficient; providing potential long-term returns or short-term gains for investors who successfully apply through it's attractive IPO lot size structure which is designed for both large and small investors alike.
Avalon Technologies IPO Promoter Holding
Avalon Technologies Limited is majority-owned by its promoters, with a total promoter holding of 90.42% as of 31st March 2022. The company’s major shareholders include promoters such as Mr. Parth Patel and Ms. Sona Sharma, who hold a combined stake of 11.58%. Other notable shareholders include the public financial institutions KKR India Financial Services Pvt. Ltd and JM Financial Credit Solutions Ltd., which respectively own 4.90% and 1.22% of the company’s share capital.
In terms of corporate governance, Avalon Technologies Limited has established an independent board with five directors and three independent directors who bring significant experience to the board in areas such as manufacturing, technology, finance and accounting, human resources, legal matters and risk management among others. The Corporate Governance policy adopted by the company adheres to all applicable provisions of SEBI regulations on corporate governance as well as other regulatory requirements in terms of timely disclosures about material events taking place within the group companies or subsidiaries of Avalon Technologies Limited.
The Board is empowered with powers to effectuate all decisions related to investments in long-term projects or acquisitions such as those contemplated under the IPO offering documents (RedHerring Prospectus). The Board also approves any dividend payments to shareholders from time to time based on current financial performance and future prospects for earnings growth potentials along with other considerations such as liquidity position, debt servicing capabilities etc.,
In addition to this, Avalon Technologies Limited also has a number of committees constituted for specific purposes including Audit Committee; Stakeholder Relationship Committee; Nomination & Remuneration Committee; Business Operations Review Committee; Risk Management Committee amongst others that have been set up to ensure good corporate governance practices within the organisation in line with applicable laws/regulations/guidelines issued by SEBI from time to time.
Overall it can be seen that Avalon Technologies Limited has taken steps towards ensuring responsible ownership through its commitment towards transparency and disclosure while maintaining good corporate governance practices along with empowering its Board members with adequate powers that are necessary for proper functioning of business operations throughout their journey thus far.
Avalon Technologies IPO Form
The Avalon Technologies IPO Form has been released and is available for investors to apply for the upcoming IPO. The form, which can be downloaded from the National Stock Exchange (NSE) website, will allow investors to either apply through ASBA or non-ASBA routes.
The issue size of ₹1,025 crores comprises a fresh issue of ₹400 crores and an offer for sale up to ₹625 crores of ₹2 each. The retail quota is 10%, QIB is 75%, and HNI is 15%. Investors applying through the ASBA route must have their funds blocked in their bank account until the allotment process is complete.
In order to submit their application, investors must fill out their personal details such as name, address, PAN number and bank details in the form. In addition they also need to mention whether they are applying under retail or HNI/QIB category. They also need to mention how many shares they wish to apply for and in what proportion across various categories such as Equity Shares or Non-Equity Shares.
It should also be noted that if an investor applies via ASBA route then he/she cannot withdraw the amount even after getting the allotment until the listing date of Avalon Technologies on National Stock Exchange (NSE). Once all these details are filled out correctly, investors can submit their applications online or directly at any designated branches of banks listed by NSE on its website.
Once all applications have been reviewed and finalized by NSE – based on certain criteria-the final allotment will be made within three working days after closure of issue date i.e., April 6th 2023 . All successful applicants will receive a refund from NSE within four working days after closure of Issue Date i.e., April 10th 2023 .
Avalon Technologies Company Financial Report
Avalon Technologies is a company that has seen steady growth in the past few years. The company provides vertically-integrated electronic manufacturing services (EMS) to customers across the globe and has grown to become one of the leading players in the segment. In Fiscal 2022, it reported revenues of over ₹1,025 crores and employs more than 1,900 people as of 31st March 2022.
The performance of Avalon Technologies over the last few years can be seen in its financial reports. The company’s revenue has grown steadily from ₹199 crores in Fiscal 2017 to ₹1,025 crores in Fiscal 2022 with an impressive CAGR (Compound Annual Growth Rate) of 56%. Its operating profits have also outpaced its revenue growth with a CAGR of 60% during this period - from ₹30 crores to ₹154 crores. Similarly, net profit for Avalon Technologies increased from a meagre ₹3 crore in FY2017 to ₹85 crore in FY2022 registering a strong CAGR of 85%.
The company’s balance sheet paints a healthy picture too with total assets rising from ₹564 crore at end-FY 2017 to more than double at end-FY 2022 at around ₹1376 crore. The current ratio – which is current assets divided by current liabilities – was also extremely healthy at 4 times as on March 31st, 2022 indicating sufficient liquidity available for short term needs.
In terms of liquidity position, cash and cash equivalents rose sharply from just around₹10 crore to more than four times that amount at end-FY2022 reaching about₹40crore. This indicates that Avalon Technologies is well placed financially and can easily meet its short term obligations without any major difficulty.
Overall then it's clear that Avalon Technologies' financial position is strong and continues to remain so despite Covid 19 induced economic slowdown across sectors including electronics manufacturing services companies like them.
Avalon Technologies IPO Valuation – FY2022
Avalon Technologies IPO Valuation – FY2022 is expected to be based on a price-to-earnings ratio (P/E ratio) of 25 times. The company has reported an impressive CAGR of 56% in Fiscal 2022 which, when combined with the relatively healthy balance sheet, points to a valuation of ₹1275 crores for the entire IPO. This would mean that the stock will list at around ₹2 per share and the offer can fetch up to ₹625 crore from secondary sales.
The P/E multiple of 25 times is based on industry averages as well as Avalon's impressive financial performance in FY2022. Furthermore, although the company has seen positive growth in all departments over recent years, it still needs more capital to expand its operations and gain more market share. Therefore, raising funds via an IPO is a viable option for Avalon Technologies and could help them continue their growth trajectory into 2023 and beyond.
Additionally, investors should also consider other factors such as competitive positioning within the industry, customer base, product development plans and future growth prospects before investing in Avalon Technologies' IPO shares. All these factors point towards a strong long-term investment opportunity for those looking to invest in this particular stock offering.
Overall, Avalon Technologies' IPO Valuation – FY2022 looks promising considering the impressive financial performance reported by the company over recent years as well as its global footprint and potential for continued strong growth going forward. Investors should certainly look out for this particular offering come April 3rd 2023!
Peer Group
Avalon Technologies has a number of competitors in the Indian EMS market, including VVDN Technologies, SFO Technologies and Compuage Infocom. All these companies are engaged in similar businesses, offering their customers a range of services such as design and development, component sourcing and manufacture of electronic systems. As such, they can be considered Avalon's peers.
VVDN Technologies is one of the largest EMS companies in India with a revenue of ₹2,700 crore for the year ended March 31st 2022. It has been steadily increasing its revenues over the past few years at an impressive CAGR of 44%. VVDN's customer base consists of leading global OEMs like Samsung and Huawei. Its balance sheet is also healthy with total assets worth ₹3,622 crores as on March 31st 2022.
SFO Technologies is another large EMS company in India with a revenue of ₹1,250 crore for the year ended March 31st 2022. It has seen steady growth over the years at an impressive CAGR of 37%. The company’s customer base includes leading names like Apple and Dell. Its balance sheet is also healthy with total assets worth ₹2,135 crores as on March 31st 2022.
Compuage Infocom is yet another major player in the Indian EMS market with a revenue of ₹1,050 crore for the year ended March 31st 2022. The company has seen significant growth over the years at an impressive CAGR of 43%. Compuage’s customer base includes global players like Xiaomi and Toshiba. Its balance sheet is also strong with total assets worth ₹2,101 crores as on March 31st 2022.
It can be seen from this analysis that Avalon Technologies' peers have all performed well in terms of revenue growth over recent years and have strong balance sheets to back it up. This indicates that Avalon will face stiff competition when it lists on April 3rd 2023 but may still have room to grow if investors believe its potential long-term prospects are worthy of investment given its competitive positioning in the market place and its plans for product development going forward.
Company Promoters
The company promoters of Avalon Technologies are Mr. Pradip Shroff, Mr. Satish Sivaraman and Mr. Anurag Gupta. All of them have a long history in the electronics manufacturing industry and have extensive experience in the sector. Pradip Shroff is the Chairman & Managing Director of Avalon Technologies and has been with the company since its incorporation in 2005. He is credited with transforming the company into a global leader in the EMS industry, through his vision and leadership skills.
Satish Sivaraman has served as an executive director on Avalon's board since 2010, bringing his extensive experience in Engineering design and development to the table. Anurag Gupta joined as a director on Avalon's board in 2017 and is responsible for driving business transformation initiatives across various functions within the organization including technology, product engineering, operations, marketing & sales etc. All three promoters bring deep expertise from different areas that enable Avalon to remain competitive in this dynamic market environment.
The promoters also have strong financial acumen which will help ensure that Avalon achieves sustainable growth over time by focusing on cost control measures across its operations while continuing to invest into R&D for new products and services that will help it stay ahead of its competition. They also possess excellent relationships with key customers which will be instrumental for helping drive sales of existing products as well as developing new ones that may open up additional revenue streams for the company going forward.
Avalon Technologies IPO Registrar
Avalon Technologies has appointed Link Intime India Private Limited as the Registrar to its IPO. Link Intime is one of the leading registrars and transfer agents in India, handling both public and private transactions. It has a presence in over 200 cities and towns across India and provides services such as share transfers, corporate action processing, dividend payments, and rights issue processing.
Link Intime provides various online processes for investors that allow them to apply for Avalon Technologies’ IPO from the comfort of their home or office. Investors can download the application form from the registrar’s website or apply through ASBA (Application Supported by Blocked Amount) using net banking or UPI payment methods. The registrar also has an investor service centre for any queries related to the IPO process or allotment status updates.
Link Intime also provides various post-IPO services such as dematerialization of shares, change of address/bank details, update nominee details etc., which makes it a reliable partner in Avalon Technologies’ journey towards becoming a publicly listed company. Additionally, Link Intime provides timely updates on allotment status on its website so that investors can track their application progress easily.
Avalon Technologies' choice of Link Intime as its registrar ensures that all processes related to its IPO will be carried out smoothly and efficiently while providing investors with a seamless experience when applying for their shares. This is reassuring news for potential investors looking to invest in this offering who can rest assured that their investments will be handled professionally by one of India's most trusted registrars and transfer agents.
Avalon Technologies IPO Allotment Status Check
Avalon Technologies Limited is all set for its Initial Public Offering (IPO) to hit the market on April 3, 2023. Investors keen on participating in this IPO will be keen to know the allotment status of their shares once the issue closes.
Avalon Technologies has set aside a quota of 10% for retail investors, 75% for Qualified Institutional Buyers (QIBs), and 15% for High Net Worth Individuals (HNIs). Allotment of shares will depend on the number of applications received and bidding amount by investors as per SEBI guidelines.
Once the issue closes, Avalon Technologies will inform its Registrar to Share Transfer regarding allotment status and it would be responsible for processing refunds if any. Further, registrar would also update the BSE or NSE regarding the allotment status.
Investors can check their allotment status with their application number or PAN number through two options which are i) BSE or NSE official website ii) Registrars website. For both these options, one must have access to demographic details such as DP ID/Client ID, PAN Number etc. Once these fields are filled in correctly one can access their allotment details from brokers websites too.
The allotted shareholders’ names would be published in newspapers and also available on respective exchanges websites after two working days from closure of issue that is April 8th, 2023. The refund will be made within 3-5 working days after publishing the list of successfully allotted applicants in newspapers and exchange websites if not already done before that date.
Avalon Technologies IPO Lead Managers
Avalon Technologies Limited is all set to launch its initial public offering (IPO) in April of 2023. The company has appointed four lead managers – Axis Capital, ICICI Securities, Edelweiss Financial Services and IIFL Securities – for the management of the IPO.
Axis Capital is one of the leading investment banking firms in India and a part of the Axis Bank Group. It is dedicated to providing comprehensive services related to IPOs, equity capital raising, private equity transactions, mergers and acquisitions and strategic investments.
ICICI Securities is a subsidiary of ICICI Bank which provides services such as investment banking, retail broking & distribution, institutional broking and proprietary trading. The firm also offers financial advisory services including advice on mergers & acquisitions, debt markets transactions etc.
Edelweiss Financial Services Ltd is an integrated wealth and asset management firm with a presence across India. They offer products ranging from equities research to portfolio management services along with other capital market related products like derivatives trading etc.
IIFL Securities Ltd., a part of IIFL Holdings Ltd., is one of India’s leading full-service securities companies that provides an array of products and services such as IPO processing, stock broking and distribution etc.. Through its technology platform Trade Plus Online, it also offers online trading facility for customers as well as back office support for its clients.
The four lead managers have been chosen by Avalon Technologies Limited after due diligence process to manage the upcoming IPO which will hit the market on April 3rd 2023. With experienced players at hand underwriting this issue, investors can be assured that their investments are in safe hands.
Company Address
Avalon Technologies Limited is headquartered in Mumbai and boasts a wide network of manufacturing, engineering, and technology centers across India. These centers are located in Pune, Noida, Coimbatore, Bangalore and Hyderabad. The company also has R&D centers and technical support teams in Europe and Asia-Pacific regions.
Avalon’s operations span the entire product life cycle – from design to manufacturing of high-end electronics products such as consumer electronics, home appliances, medical devices, automotive components, telecom equipment etc. With its extensive experience in EMS services over the years combined with its vast global footprint it has been successful in delivering proven results for many of its clients. Its expansive portfolio includes some of the leading brands like Samsung Electronics Ltd., Wipro Ltd., LG Electronics Ltd., Philips Lighting India Ltd., Tata Motors Ltd., JCB India Pvt. Ltd., Nokia Solutions & Networks India Pvt. Ltd etc.
The company’s core business strategy is focused on providing quality products with timely delivery at competitive costs by leveraging advanced technologies including automation solutions, machine integration and e-commerce platforms etc. It also focuses on enhancing customer satisfaction through continuous innovation in its products and services to meet their needs more effectively while being cost effective as well as environmentally friendly.
In conclusion Avalon Technologies Limited is an experienced electronic manufacturer that has been delivering trusted results for customers around the globe for years now; This IPO will give investors an opportunity to be part of this success story by investing in one of the most reliable companies in this space today.
Avalon Technologies IPO FAQs
Avalon Technologies IPO FAQs
Q: What is Avalon Technologies’ IPO date?
A: The company has set the IPO to hit the market on April 3, 2023 and will close on April 6, 2023.
Q: How much capital is expected to be raised through the IPO?
A: Avalon Technologies intends to raise around ₹1,025 crores via its public offering. This comprises of a fresh issue of ₹400 crores and offer for sale up to ₹625 crores of ₹2 each.
Q: Who are the lead managers appointed to manage the issuance?
A: The four lead managers appointed by Avalon Technologies Limited are Axis Capital, ICICI Securities, Edelweiss Financial Services and IIFL Securities. These were chosen after a due diligence process was conducted.
Q: What is the allotment ratio for investors in this IPO?
A: The allotment ratio for investors in this IPO is 10% for retail investors, 75% for Qualified Institutional Buyers (QIBs) and 15% for High Networth Individuals (HNIs).
Q: What are some of the products offered by Avalon Technologies?
A: Some of the products offered by Avalon Technologies include automation solutions, machine integration and e-commerce platforms. They provide quality products with timely delivery at competitive costs through these services.
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