Electronic manufacturing services provider Avalon Technologies and construction firm Udayshivakumar Infra have received capital markets regulator SEBI's go ahead to raise funds through initial public offerings (IPOs).
The two companies, which filed their respective preliminary IPO papers with the markets regulator during August and September 2022, obtained observation letters from it on January 16, an update with the Securities and Exchange Board of India (SEBI) showed on Monday.
In SEBI's parlance, its observation implies its go ahead to launch the initial share-sale.
Going by 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 (OFS) aggregating up to Rs 625 crore by promoters and existing shareholders.
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.
Proceeds from the fresh issue would be used towards debt payment, funding working capital requirements and general corporate purposes.
Founded in 1999, Avalon is an end-to-end electronic manufacturing service solutions provider and counts Kyosan India, Zonar Systems Inc, Collins Aerospace, e-Infochips, The US Malabar Company, Meggitt (Securaplane Technologies Inc) and Systech Corporation as some of its key clients.
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.
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.
Shares of both the companies will be listed on the BSE and National Stock Exchange (NSE).