The initial public offering (IPO) of Avalon Technologies Ltd was subscribed 2.21 times on Day 3. The public issue that opened for subscription on Monday, April 3, closed on Thursday, April 6.
On Day 3 of the subscription, the issue saw some positive response from qualified institutional buyers (QIBs) who subscribed to the issue 3.57 times. Retail investors subscribed to 84% of the portion reserved and non-institutional bidders subscribed to 41% of the portion set aside.
The company has received bids for 2,53,32,856 shares against 1,14,63,854 shares on offer, according to data from the BSE at 18:09 IST.
The qualified institutional buyers' (QIBs) portion received bids for 2,23,03,864 shares against 62,53,012 on offer for this segment.
The retail investors' portion received bids for 17,52,666 shares against 20,84,337 shares on offer for this segment.
The non-institutional investors' portion received bids for 12,76,326 shares against 31,26,505 on offer for this segment.
The employees' portions did not receive any subscription.
The company has fixed the price band at ₹415 to ₹436 per equity share for the proposed initial public offer.
On Friday, through its anchor book, the company was able to raise ₹389.25 crore, and a total of 24 investors took part.
Nomura Trust, Ashoka India Opportunities Fund, Goldman Sachs, Neuberger Berman Emerging Markets Equity Fund, HDFC MF, Aditya Birla Sun Life Insurance Company, HDFC Life Insurance Company, Whiteoak Capital, Mahindra Manulife Mutual Fund, Oaks Emerging Umbrella Fund Plc, and Principal Funds Inc. were among the prominent participants in the anchor book.
According to a BSE exchange filing by the company, the promoter selling shareholders and the IPO committee have decided to allocate 89.27 lakh shares to anchor investors at a price of ₹436 per share.
29.81 lakh equity shares were distributed to 5 domestic mutual funds via a total of 10 schemes.
The company's ₹865 crore IPO is made up of ₹320 crore from a fresh share issuance and ₹545 crore from offer for sale (OFS) by promoters and existing shareholders.
Kunhamed Bicha, Bhaskar Srinivasan, T P Imbichammad, Mariyam Bicha, Anand Kumar, Sareday Seshu Kumar, and Luquman Veedu Ediyanam are the shareholders offloading their stake.
The offer is being made through the book-building process, in which not less than 15% of the offer must be made available to non-institutional investors and not less than 10% of the offer must be made available to retail individual investors. Not more than 75% of the offer may be allocated to qualified institutional buyers.
JM Financial Ltd, DAM Capital Advisors Ltd, IIFL Securities Ltd, Nomura Financial Advisory and Securities (India) Private Ltd are the lead managers of the issue, and Link Intime India Private Ltd is the registrar.
