Avalon Technologies Ltd has set a price range for its IPO of Rs 415-436 per share, valuing the company at Rs 2,500 crore at the top end of the range.

New shares open for subscription on April 3 and close on April 6. Anchor investor bidding starts on March 31, fund allocation on April 12, credit granting on April 17, and stock listing on the exchange on April 18.

The Rs 865 crore public offering will consist of new issues of Rs 320 crore and an offer for sale (OFS) of up to Rs 545 crore. The OFS will include Kunhamed Bicha, up to Rs 131 crore; Bhaskar Srinivasan, up to Rs 172 crore; TP Imbicammad, up to Rs 100 crore; Mariyam Bicha, up to Rs 10 crore and up to Rs 75.50 crore by Anand Kumar and Luquman Veedu Ediyanam each, and Sareday Seshu Kumar up to Rs 65 crore.

The IPO size was reduced from Rs 1,000 crore after Avalon completed a pre-IPO general placement of Rs 160 crore, which included 80 crores of primary or fresh issuance and 80 crore secondary share sales. In the pre-IPO placement, the company received Rs 60 crore each from UNIFI Financial Private Limited, Ashoka India Equity Investment Trust Plc and Rs 40 crore from India Acorn Fund Limited. Hence, the size of the public offering is currently at Rs 865 crore.

Proceeds from the new issue worth Rs 145 crore will be used to pay debts of the company and its material arm Avalon Technology and Services Pvt Ltd. Avalon Technologies has total outstanding borrowings on a consolidated basis of Rs 324.12 crore as of January 2023.

The company plans to use Rs 90 crore to meet its working capital requirements in FY24. The separate amount approved by banks to companies under a fund-based working capital facility is Rs 152.69 crore as of January 2023.

JM Financial, DAM Capital Advisors, IIFL Securities and Nomura Financial Advisory and Securities India are the lead managers for the offering.

Avalon Technologies is one of the leading fully integrated Electronics Manufacturing Services (EMS) companies with end-to-end capabilities in providing box-build solutions in India, focusing on high-value precision-engineered products.

The company provides a complete suite of products and solutions, from printed circuit board (PCB) design and assembly to complete electronic system manufacture (in-box) to select global Original Equipment Manufacturers (OEMs), including OEMs in the US, China, Netherlands and Japan.

It has 12 manufacturing plants in India and the US. The company specializes in the manufacture and design support of critical integrated assemblies, subassemblies, assemblies and enclosures for multiple vertical industries.

For FY22, its total revenue rose to Rs 851.65 crore from Rs 695.90 crore a year ago. Net profit for the year stood at Rs 68.16 crore from Rs 23.08 crore last year, while the EBITDA margin improved to 11.6% from 9.58% a year ago.

The gross order book for November 2022 to Rs 1,190.25 crore from Rs 857.87 crore in FY22. As of November 2022, its total number of customers rose to 89 from 72 a year ago.