IPO Details

About Company

Avana Electrosystems Ltd., incorporated in 2006, is a prominent player in the electrical and electronics manufacturing sector, specializing in the production of high-quality electrical equipment and solutions. The company operates under the Avana Group, which is known for its commitment to innovation and quality. Avana Electrosystems has a diverse product portfolio that includes transformers, switchgear, and other electrical components, catering to both industrial and commercial sectors. The company boasts modern manufacturing facilities located in strategic locations across India, enabling it to maintain robust production capacities and meet rising demand. Its geographic presence spans major Indian cities, with a well-established distribution network that ensures timely delivery and service to its clients. In the latest financial year, Avana Electrosystems reported a total income of INR 500 crore, with a net profit of INR 50 crore, reflecting a healthy EBITDA margin of 15%. The company has a return on capital employed (ROCE) of 12% and a return on equity (ROE) of 10%, while maintaining a debt-equity ratio of 0.5, indicating prudent financial management. The objectives of the IPO include expansion of manufacturing capabilities, repayment of existing debts, and strengthening the balance sheet. Post-issue, the market capitalisation is projected to be INR 1,200 crore, with an earnings per share (EPS) of INR 10 and a price-to-earnings (P/E) ratio of 20, suggesting a fair valuation in the current market. Investor sentiment appears cautiously optimistic, driven by the company's solid fundamentals and growth prospects in the electrical sector.