Avalon Technologies Limited has filed a draft red herring prospectus with the Securities and Exchange Board of India to raise around Rs 1,025 crore through an initial public offering.
The IPO will include a fresh issue of Rs 400 crore and an offer for sale by its existing shareholders and promoters for up to Rs 625 crore.
JM Financial, DAM Capital Advisors, IIFL Securities, Nomura Financial Advisory, and Securities India are the lead managers for this IPO.
The OFS will include up to Rs 130 crore by Kunhmed Bicha, up to Rs 210 crore by Bhaskar Srinivasan, up to Rs 34 crore by TP Imbichamed, up to Rs 12 crore by Mariam Bicha and up to Rs 79.51 crore each by Anand Kumar, Sareday Seshu Kumar and Lukuman Veedu Ediyanam.
The proceeds of Rs 150 crore from the issue will be used to repay the loan. As of June 2022, the company’s total outstanding borrowings stood at Rs 312.27 crore.
Incorporated in 2000, Avalon is an end-to-end electronic manufacturing service solutions provider and counts Kyosan India, Zonar Systems Inc, Collins Aerospace, eInfochips, The US Malabar Company, Meggitt (Securaplane Technologies Inc) and Systech Corporation as some of its key clients.
For FY22, its total income increased to Rs 851.65 crore from Rs 695,90 crore a year ago. Net profit for the year stood at Rs 68.16 crore as against Rs 23.08 crore in the previous year, while the EBITDA margin for the year increased to 11.6 per cent from 9.58 per cent a year ago.