Avalon Technologies raised Rs 865 crore from the Initial Public Offering (IPO) which was a combination of fresh issue of Rs 320 crore and an offer for sale (OFS) worth Rs 545 crore
Shares of Avalon Technologies made a tepid stock market debut on Tuesday as the stock opened for trading at Rs 435.30 on the BSE against issue price of Rs 436. On the National Stock Exchange, Avalon Technologies shares opened unchanged for trading at Rs 436.
Soon after making a muted listing, Avalon Technologies shares came under selling pressure and fell as much as 5.5 per cent, from the issue price, to hit an intraday low of Rs 412.
Avalon Technologies raised Rs 865 crore from the Initial Public Offering (IPO) which was a combination of fresh issue of Rs 320 crore and an offer for sale (OFS) worth Rs 545 crore.
Avalon Technologies' three-day share sale via IPO, which ended on April 6, was subscribed 2.34 times. Portion of shares reserved for qualified institutional buyers (QIBs) was subscribed 3.77 times, shares set aside for non-institutional investors (NIIs) was subscribed 0.43 times and pie set aside for retail investors was subscribed 2.34 times.
During the IPO, Avalon Technologies had reserved 54.55 per cent shares for the QIBs, 27.44 per cent shares for NIIs and 18.3 per cent shares for retail investors.
"Avalon Technologies made its debut in the market at a listing price of 436. The company's issue price was Rs 415-436, so shares are listed at par with no profit and no loss. Avalon Technologies is a fully integrated EMS company with end-to-end operations that deliver box-build solutions in India. The company operates in a business with high entry barriers and has a global delivery footprint," said Pravesh Gour, senior technical analyst at Swastika Investmart .
"Despite its strong and stable financial performance, Avalon Technologies experienced a decline in its PAT margin during the first eight months of FY22 and currently has a high debt ratio. Investors with a high-risk tolerance may consider holding Avalon Technologies Ltd. shares long-term, with a recommended stop loss of around Rs 405, which is the lower price band of the issue," Gour added.
As of 10:30 am, Avalon Technologies shares traded 5.2 per cent lower from issue price at Rs 413, underperforming the Sensex which was down 0.22 per cent.