NewsIPOAvana Electrosystems IPO Opens with 24% Grey Market Premium, Targets Rs 35 Crore FundraiseAvana Electrosystems IPO Opens with 24% Grey Market Premium, Targets Rs 35 Crore Fundraise
Avana Electrosystems' IPO opens January 12 with Rs 24 grey market premium, targeting Rs 35 crore through NSE SME listing. The power systems company reported Rs 62.90 crore revenue and Rs 8.31 crore profit for March 2025, planning to use proceeds for manufacturing expansion and working capital.
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Avana Electrosystems' initial public offering opens on January 12 with encouraging early market signals, as the unlisted shares command a grey market premium of Rs 24 per share. The power systems solutions company's SME IPO has generated investor interest despite broader volatility in small-cap and SME segments.
Grey Market Performance and Pricing
The grey market premium suggests potential strong debut performance for the Bengaluru-based company. Based on the upper price band, the market indicators point to promising early reception.
| Parameter: | Details |
|---|---|
| Grey Market Premium: | Rs 24 per share |
| Price Band: | Rs 56 - Rs 59 |
| Potential Listing Price: | Around Rs 83 |
| Implied Premium: | Approximately 40% |
However, investors should note that grey market trends remain unofficial and can shift based on subscription momentum and market sentiment.
Issue Structure and Investment Requirements
The IPO comprises both fresh capital raising and existing shareholder participation through offer for sale mechanism.
| Component: | Value |
|---|---|
| Fresh Issue: | 0.52 crore shares (Rs 30.50 crore) |
| Offer for Sale: | 0.08 crore shares (Rs 4.70 crore) |
| Total Fundraise: | Rs 35.00 crore |
| Pre-IPO Market Cap: | Rs 134.00 crore |
The investment structure requires substantial minimum commitments from different investor categories:
- Retail Investors: Minimum 4,000 shares (Rs 2,36,000)
- HNI Investors: Minimum 6,000 shares (Rs 3,54,000)
- Lot Size: 2,000 shares
Reservation Structure
The issue allocation follows standard SME IPO norms with institutional focus:
| Investor Category: | Allocation |
|---|---|
| Qualified Institutional Buyers: | 47% |
| Retail Investors: | 33% |
| Non-Institutional Investors: | 14.5% |
Business Operations and Market Position
Incorporated in 2010, Avana Electrosystems specializes in designing and manufacturing customized control and relay panels for power transmission and distribution infrastructure. The company's product portfolio spans control and relay panels from 11 kV to 220 kV, protection relays, substation automation panels, and related systems for transmission lines, transformers, bus bars, and capacitor banks.
The company operates two manufacturing facilities in Peenya Industrial Estate, Bengaluru, serving utilities, EPC contractors, and industrial clients across India. As of August 2025, the company employed 129 people.
Financial Performance
Avana Electrosystems has demonstrated consistent growth trajectory in recent periods:
| Period: | Revenue | Profit After Tax |
|---|---|---|
| Year ended March 2025: | Rs 62.90 crore | Rs 8.31 crore |
| Year ended March 2024: | Rs 53.30 crore | Rs 4.02 crore |
| Six months ended September 2025: | Rs 36.30 crore | Rs 5.61 crore |
Fund Utilization Plan
The company has outlined specific deployment strategy for IPO proceeds:
- Integrated Manufacturing Unit: Rs 11.60 crore for civil construction, electrical and plumbing works
- Working Capital: Rs 8.40 crore for operational requirements
- General Corporate Purposes: Remaining funds
Issue Timeline and Intermediaries
The IPO closes on January 14, with market debut scheduled for January 19 on the NSE SME platform. Asnani Stock Broker serves as market maker, while Indcap Advisors acts as book-running lead manager and Integrated Registry Management Services handles registrar responsibilities.
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