Avalon Technologies public issue sees subdued investor interest on Day 1

The maiden trouble of Avalon Technologies noticed tepid investor hobby on the primary day of bidding on April three whilst analysts stayed superb approximately the employer.

The trouble turned into subscribed 1 percentage as of 12.30pm, BSE records showed, thank you in large part to retail buyers. Out of the full 1,14,63,854 stocks up for grabs, buyers had bid for 1,47,662 gadgets so far.

The retail investor quota turned into subscribed 7 percentage and quota reserved for non-institutional buyers noticed some applications, at the same time as the ones for Qualified Institutional Buyers did now no longer see any software yet.

Avalon is an included EMS company with proper diversification amongst end-person industries and customers with strategic production locations. Its scope of labor calls for complicated designing, engineering, thing procurement and production, which creates lengthy lead instances and therefore access barriers.

The rate band has been constant at Rs 415-436 consistent with percentage of face price of Rs 2 each.

Avalon intends to elevate Rs 865 crore thru its IPO that contains a sparkling issuance of stocks really well worth Rs 320 crore, and an offer-for-sale of fairness stocks really well worth Rs 545 crore through promoters and different promoting shareholders.

Analysts monitoring the problem agree with the employer belongs to a high-increase industry. Moreover, a few valuation consolation as compared to its indexed friends makes Avalon Tech a beneficial investment.

Sumeet Shah of Reliance Securities, underlined that on the premise of the FY23 annualised financials, the IPO is worth 55.5x P/E on the higher rate band that's decrease than its friends. Though a few discover this PE a couple of now no longer that attractive, no matter being decrease than its friends.