Strong market debut: Avana Electrosystems shares list at 31% premium to SME IPO price, beat GMP estimates

Strong market debut: Avana Electrosystems shares list at 31% premium to SME IPO price, beat GMP estimates

• Avana Electrosystems shares debut at Rs 77.5, 31.4% above IPO price
• Shares hit lower circuit at Rs 73.65 but remain 25 percent above IPO price
• IPO was subscribed nearly 122 times, showing strong investor interest

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The shares of Avana Electrosystems made a strong market debut on January 20, listing at Rs 77.5 apiece on the NSE Emerge platform. This marks a premium of nearly 31.4 percent over the SME IPO price of Rs 59 per share.

The company debuted with a market capitalization of more than Rs 175 crore.

After the strong market debut, the shares of the company dropped around 5 percent to hit the lower circuit at Rs 73.65 apiece. The stock is currently around 25 percent higher than its IPO price.

Listing premium vs grey market estimates:

The listing premium has beaten grey market estimates. Ahead of listing, the unlisted shares of the company were trading with 17.80 percent grey market premium (GMP) over the IPO price, according to data on Investorgain.

According to IPO Watch, the unlisted shares of the company were trading with 18.64 percent GMP over the IPO price.

Avana Electrosystems IPO:

Avana Electrosystems launched its initial public offering (IPO) earlier this month to raise around Rs 34 crore through a fresh issue of shares worth Rs 29 crore and an offer for sale (OFS) of shares worth around Rs 5 crore.

Retail investors could bid for a minimum of 2,000 shares, requiring an investment of Rs 2.36 lakh, and in multiples of 1,000 shares thereafter. The price band was set at Rs 56-59 per share.

The IPO saw strong investor interest during its three days of public bidding, being subscribed nearly 123 times its offer size between January 12 and January 14. Non Institutional Investors (NII) and retail investors showed the most interest in the IPO, subscribing their reserved portions 219 times and 138 times respectively. The portion kept for Qualified Institutional Investors (QIB) was booked 55 times.

Avana Electrosystems manufactures power electronics products including rectifiers, inverters, DC power supplies, AC/DC drives, battery chargers, solar inverters, UPS systems and custom power solutions, along with low to medium voltage switchgear and control panels. The firm’s facility in Bengaluru serves industries like railways, steel, cement, power utilities, oil & gas, marine, defence and telecom, with in‑house design and testing capabilities.​

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