The Business Bytes
TBB BUREAU
BHUBANESWAR, MAR 28, 2023
Avalon Technologies Limited proposes to open its initial public offering of equity shares of face value of Rs 2 each aggregating up to Rs 8,650 million on April 3, 2023.
The initial public offering comprises of a fresh issue of Equity Shares aggregating up to Rs 3,200 million and an offer for sale of Equity Shares aggregating up to Rs 5,450 million by selling shareholders (the “Offer for Sale” and together with the Fresh Issue, the “Offer”).
The Anchor Investor Bidding Date shall be March 31, 2023. The Offer will open on Monday, April 3, 2023 for subscription and will close on April 6, 2023.
The Price Band of the Offer has been fixed at Rs 415 to Rs 436 per Equity Share. Bids can be made for a minimum of 34 Equity Shares and in multiples of 34 Equity Shares thereafter.
The Company proposes to utilize the net proceeds of the Fresh Issue towards funding forprepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company and one of the Material Subsidiaries, i.e. Avalon Technology and Services Private Limited estimated to be Rs 1,450 million; funding the working capital requirements of the Company estimated to be Rs 900 million; and towards General corporate purposes.
The Offer for Sale comprises Equity Shares aggregating up to Rs 1,310 million of Kunhamed Bicha and up to Rs 1,720 million of Bhaskar Srinivasan; (the “Promoter Selling Shareholders”); up to Rs 160 million of T P Imbichammad; up to Rs 100 million of Mariyam Bicha; up to Rs 755 million of Anand Kumar; up to Rs 650 million of Sareday Seshu Kumar and up to Rs 755 million of Luquman Veedu Ediyanam.
One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price in accordance with the SEBI ICDR Regulations. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion (other than Anchor Investor Portion) (“Net QIB Portion”).
Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs.
