Avalon Technologies Ltd 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 consist of fresh issue of Rs 400 crore and an offer-for-sale of up to Rs 625 crore by its existing shareholders and promoters.
The OFS will comprise up to Rs 130 crore by Kunhamed Bicha, up to Rs 210 crore by Bhaskar Srinivasan, up to Rs 34 crore by TP Imbichammad, up to Rs 12 crore by Mariyam Bicha, and up to Rs 79.51 crore each by Anand Kumar, Sareday Seshu Kumar and Luquman Veedu Ediyanam.
The proceeds from the issue worth Rs 150 crore will be used to repay debt. As of June 2022, company's total outstanding borrowings amounted to Rs 312.27 crore.
The company will also use Rs 150 crore for funding its working capital requirements. As of March 2022, the aggregate amount sanctioned by the banks to its firm under the fund based working capital facilities amounted to Rs 126.50 crore on a standalone basis.
Avalon Tech may undertake a pre-IPO placement of Rs 80 crore, DRHP said.
JM Financial, DAM Capital Advisors, IIFL Securities and Nomura Financial Advisory and Securities India are the lead managers to the issue.
The firm is one of the leading fully integrated Electronic Manufacturing Services (EMS) companies with end-to-end capabilities in delivering box build solutions in India with a focus on high value precision engineered products.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
