Avon Weighing IPO Subscribed 45 Times

The fixed price at par IPO by Avon Weighing Systems received an overwhelming response from investors and it was subscribed 45 times, according to the data available. Keynote Corporate Services Limited is the Lead Manager for the Issue and Datamatics Financial Services Limited is the Registrar to the Issue.

The company engaged in the business of selling weighing systems in India had entered the capital markets on 9th June 2008 with a public issue of 1,37,33,033 Equity Shares of Rs 10 each at par aggregating to Rs 1373.30 lacs. This comprises of promoters’ contribution of 38,96,633 Equity Shares aggregating to Rs 389.66 lacs, leaving a net offer to the public of 98,36,400 Equity Shares aggregating Rs 983.64 lacs constituting 59.33% of the post issue paid-up capital of the Company. The Equity Shares are proposed to be listed on BSE.

Avon proposes to part finance its Rs 17.30 crore plan through the net proceeds of the Issue. The plan include setting up of facility for manufacturing of a range of weighing systems, open four showrooms for display and sale of its weighing systems in Mumbai, Delhi, Chennai and Hyderabad, and purchase of additional office premises in Mumbai. The project is proposed to be funded through IPO of Rs 9.83 crores, promoters contribution of Rs 4.36 crores, internal accruals of Rs. 0.50 crore and a term loan of Rs.2.60 crores from Bank of India.

The proposed manufacturing plant will be set up at Baddi in Himachal Pradesh with technical assistance from Tanita Corporation of Japan. Avon will be able to enjoy fiscal incentives provided by the Himachal Pradesh government for setting up plant at Baddi.