Avalon Technologies shares were listed at a discount of around 1.1% at ₹431 on Tuesday. The price band for the IPO that was launched earlier this month was ₹415-₹436.
What Happened: The electronic manufacturing services company ₹865 crore IPO received a great response from Qualified Institutional Investors, however, retail investors did not show much interest. The IPO QIB portion was subscribed 3.8 times while the retail investors’ portion saw only 88% subscription. Overall the IPO was subscribed 2.34 times.
Several domestic brokerages had assigned a ‘subscribe’ rating to the Avalon Tech IPO. Hem Securities and Canara Bank Securities both gave the IPO a ‘subscribe for long term rating’. Reliance Securities also had ‘subscibe’ recommendation for the IPO.
As per the company’s filing, it has seen healthy growth in its finances in the past two years. The company’s revenue for FY2021(April 2020- March 2021) stood at ₹690.47 crore, this number jumped to ₹840.72 crore in FY22 (April 2021- March 2022). Net profits for FY21 stood at ₹23.08 crore. In FY22 the profits more than doubled to ₹68.16 crore.
Price Action: Avalon Tech’s share price was down 2.90% from its opening price of ₹431 to trade at ₹418.50 in the early hours of trading on Tuesday.
Get all the latest Share Market trends and news to set you up for the week ahead.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.