Avalon Technologies Limited files DRHP with SEBI

Avalon Technologies Limited, one of India’s leading fully integrated Electronic Manufacturing Services (EMS) companies with end-to-end capabilities in delivering box build solutions with a focus on high value precision engineered products, has filed the draft red herring prospectus (DRHP) with capital markets regulator, SEBI to raise Rs. 1,025 crore through an initial public offering (IPO).

The IPO of the Chennai-based company comprises of a Fresh Issue of equity shares aggregating up to Rs. 400 crores and an Offer for Sale aggregating up to Rs. 625 crores by the Selling Shareholders.

The company which counts Kyosan India Private Limited, Zonar Systems Inc., Collins Aerospace, e-Infochips Private Limited, The US Malabar Company, Meggitt (Securaplane Technologies Inc) and Systech Corporation as some of its key clients, proposes to utilize the Net Proceeds from the Fresh Issue towards funding the prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and one of its Material Subsidiaries, i.e. Avalon Technology and Services Private Limited (ATSPL); funding the working capital requirements and general corporate purposes.

Incorporated in 1999, Avalon provides a full stack product and solution suite, right from printed circuit board (“PCB”) design and assembly to the manufacture of complete electronic systems (“Box Build”), to certain global original equipment manufacturers (“OEMs”), including OEMs located in the United States, China, Netherlands and Japan. The Promoters of the company are Kunhamed Bicha and Bhaskar Srinivasan.

Avalon has a unique global delivery model, comprising design and manufacturing capabilities across both India and the United States. It is the only Indian EMS company with full-fledged manufacturing facilities in the United States and has 12 manufacturing units located across the United States and India: one unit in Atlanta, Georgia, one unit in Fremont, California, seven units in Chennai, Tamil Nadu, one unit in Kanchipuram, Tamil Nadu and two units in Bengaluru, Karnataka.

As of Fiscal 2022 its revenue from operations was Rs. 840 crores with an order book (open order) worth Rs. 1,039 crore as of June 30, 2022.

The Book Running Lead Managers to the offer are JM Financial Limited, DAM Capital Advisors Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited.