Avalon Technologies Ipo Was Subscribed 1.59 Times

The initial public offering (IPO) of Avalon Technologies was subscribed 1.59 times, as reported by Economic Times. The Rs 865 crore initial public offer was subscribed 2.48 times throughQIB portion The retail investors’ portion was subscribed 74%, while non-institutional investors bid for just 36% of the reserved portion.

Qualified Institutional Buyers (QIB) subscription boosted the overall subscription rate and provided a demand boost to the IPO, which had received a lackluster response during previous days. At the end of Day 2, the issue was subscribed by just 9%.

The IPO was open for subscription from April 3, till today, April 6, 2023. Its issue price band was set at Rs 415-436, and investors can bid for 34 shares in 1 lot and multiples thereof.

JM Financial, DAM Capital, IIFL Securities and Nomura Financial are book running lead managers for the issue and Link Intime India is acting as a registrar.

Avalon Technologies is a vertically-integrated electronic manufacturing services (EMS)company. It provides solutions in manufacturing from design, analysis to mass production solutions in India. The company provides a full stack product and solution suite, from printed circuit board design and assembly to the manufacturing of complete electronic systems.

The company intends to use proceeds from the fresh issue for the repayment of the borrowings and funding the working capital requirements. Further, residual funds will be used for general corporate purposes.

According to market sources, the grey market premium (GMP) of the company stock is currently at Rs 11-12 higher. It is expected to get listed at a marginal premium of 3% on the exchanges.

However, note that grey market premiums are just an indicator to show how the company’s shares are stacked up in the unlisted market and are subject to change rapidly