Avalon Tech's tepid listing

A new listing today – Avalon Technologies. It was a muted kind of listing – on the BSE, as against the IPO price of Rs.436, it got listed at Rs.431 and on the NSE, it got listed at the same price as IPO, Rs.436. On the BSE, after slumping down to Rs411, it is now trading at Rs.418 levels.

The IPO saw a tepid response, subscribing just 2.34x, mainly driven by QIBs, whose portion was booked 3.77x while HNIs was 0.48x and Retail Investors at 0.88x.

In our IPO Analysis, we had concluded, “Company has a good business model, but growth rate lower than peers and unattractive pricing, make the IPO an avoid, especially with the secondary market conditions being subdued.”