Avalon Technologies' stock disappointed investors on its first day of trading as it closed with a nearly 9% loss on April 18. The subdued market conditions and lack of interest from investors other than QIBs may have contributed to the poor performance of the stock.
Although the stock opened at Rs 431 on the BSE, it did not reach its issue price of Rs 436 throughout the trading session. It briefly touched an intraday high of Rs 435.30 in early trading, but selling pressure increased as the day progressed, causing it to hit a day's low of Rs 387.75.
At the end of the day, it settled at Rs 397.45, representing an 8.84% decline, with a trading volume of 3.17 lakh shares. On the National Stock Exchange, the closing price was Rs 396, down 9%, with a trading volume of 47.58 lakh shares.
Avalon Technologies, an electronic manufacturing services company incorporated in 1999, raised Rs 865 crore through its maiden public issue, with fresh issuance of shares worth Rs 320 crore. The price range for the offer was Rs 415-436 per share.
Avalon Technologies is an EMS company that offers end-to-end operations, delivering box-build solutions in India. The company operates in a business characterized by high entry barriers and has a global delivery footprint.
According to Pravesh Gour of Swastika Investmart, while Avalon Technologies has a strong and stable financial performance, it experienced a decrease in its PAT margin in the first eight months of FY22 and currently has a high debt ratio. Investors who are willing to take on higher risks may consider holding Avalon shares for the long term.