India's Avalon Technologies tumbles 8% in debut trading

Avalon Technologies

18/04/2023 07:53

BENGALURU, April 18 (Reuters) - Shares of Indian
electronic manufacturing services firm Avalon Technologies
 AVAL.NS  fell as much as 8.5% in the early hours of their
trading debut on Tuesday, underscoring weak investor interest in
a volatile capital market.
    Avalon, which operates in the clean energy, mobility,
communication and industrial segments, opened flat at 436
rupees. It was trading at 402.60 rupees as of 12:06 p.m. IST,
giving it a market valuation of 26.29 billion rupees.
    Both the benchmark indexes, the Nifty 50  .NSEI  and the S&P
BSE Sensex  .BSESN , were down on Tuesday, falling 0.19% and
0.21%, respectively. 
    The Nifty 50 has fallen 2.2% so far this year. 
    Avalon's 11.5 million shares on offer were oversubscribed
1.36 times, according to data from the National Stock Exchange
(NSE). 
    Its initial public offering (IPO) consisted of a fresh issue
of shares worth 3.2 billion rupees and an offer for the sale of
shares worth 5.45 billion rupees.
    The company had reduced the size of its IPO to 8.65 billion
rupees ($105.40 million) from 10.25 billion rupees due to
pre-IPO placements, according to its prospectus. 
    Avalon did not immediately respond to Reuters' query on the
reduced offer size.  
    The listing comes even as several companies put the brakes
on their IPO plans earlier this year in the face of turbulent
stock market conditions in recent days due to recession worries
and fears about banks' financial health.
    Personal care products startup Mamaearth put its IPO on hold
while apparel retailer Fabindia and jeweller Joyalukkas withdrew
their IPO. 
        
($1 = 82.0650 Indian rupees)

 (Reporting by Rama Venkat in Bengaluru; Editing by Janane
Venkatraman
)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))