SEBI approves Avalon Technologies and Udayshivakumar Infra to float IPO

SEBI approves Avalon Technologies and Udayshivakumar Infra to float IPO

The Securities Exchange Board of India approved the electronic manufacturing service provider- Avalon Technologies and construction firm- Udayshivakumar Infra to raise funds through Initial Public Offerings (in short IPOs).

The two companies, which filed their respective preliminary IPO papers with the market regulator during August and September 2022.

Incorporated in 1999, Avalon provides a full stack product and solution suite, right from printed circuit board design and assembly to the manufacture of complete electronic systems (Box Build), to certain global original equipment manufacturers (in short OEMs), including those located in the US, China, Netherlands, and Japan.

According to the draft papers, the IPO of Avalon Technologies comprises fresh issue of equity shares worth up to Rs. 400 crore and an Offer-for-Sale (in short OFS) amounting to Rs. 625 crore by promoters and existing shareholders.

It is reported that the proceeds from the IPO will be used towards funding the prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company and one of its Material Subsidiaries, i.e., Avalon Technology and Services Private Limited; funding the working capital requirements and general corporate purposes.

The company may consider raising Rs. 80 crore through a pre-IPO placement, and if such a placement is undertaken, the size of the fresh issue will be reduced.

Udayshivakumar Infra is in the business of construction of roads. It bids for roads, bridges, canals, and industrial area construction projects in Karnataka, including government departments. As per the draft papers, Udayshivakumar Infra's IPO consists of fresh issue of equity shares aggregating to Rs. 60 crore. Proceeds of the issue will be used to fund incremental working capital requirements and general corporate purposes.

Shares of both the companies will be listed on the Bombay Stock Exchange (in short BSE) and National Stock Exchange (in short NSE).