AVALON TECHNOLOGIES LIMITED INTIAL PUBLIC OFFER TO OPEN ON APRIL 3, 2023

AVALON TECHNOLOGIES LIMITED INTIAL PUBLIC OFFER TO OPEN ON APRIL 3, 2023

· Price Band fixed at ₹ 415 to ₹ 436 per Equity Share (as defined below);

· Bid/ Offer will open on Monday, April 3, 2023 and close on Thursday, April 6, 2023. The Anchor Investor Bidding Date shall be Friday, March 31, 2023;

· Bids can be made for a minimum of 34 Equity Shares and in multiples of 34 Equity Shares thereafter

March 28, 2023: Avalon Technologies Limited (“the Company”), proposes to open its initial public offering of equity shares of face value of ₹ 2 each aggregating up to ₹ 8,650 million (“Equity Shares”) on Monday, April 3, 2023. The initial public offering comprises of a fresh issue of Equity Shares aggregating up to ₹ 3,200 million (“Fresh Issue”) and an offer for sale of Equity Shares aggregating up to ₹ 5,450 million by selling shareholders (the “Offer for Sale” and together with the Fresh Issue, the “Offer”). The Anchor Investor Bidding Date shall be Friday, March 31, 2023. The Offer will open on Monday, April 3, 2023 for subscription and will close on Thursday, April 6, 2023.

The Price Band of the Offer has been fixed at ₹ 415 to ₹ 436 per Equity Share. Bids can be made for a minimum of 34 Equity Shares and in multiples of 34 Equity Shares thereafter.

The Company proposes to utilize the net proceeds of the Fresh Issue towards funding of the following objects: (i) prepayment or repayment of all or a portion of certain outstanding borrowings availed by the Company and one of the Material Subsidiaries, i.e. Avalon Technology and Services Private Limited estimated to be ₹ 1,450 million; (ii) funding the working capital requirements of the Company estimated to be ₹ 900 million; and (iii) balance amount towards General corporate purposes.

The Offer for Sale comprises Equity Shares aggregating up to ₹ 1,310 million of Kunhamed Bicha and up to ₹ 1,720 million of Bhaskar Srinivasan; (the “Promoter Selling Shareholders”); up to ₹ 160 million of T P Imbichammad; up to ₹ 100 million of Mariyam Bicha; up to ₹ 755 million of Anand Kumar; up to ₹ 650 million of Sareday Seshu Kumar and up to ₹ 755 million of Luquman Veedu Ediyanam .

The Equity Shares are being offered through the red herring prospectus of the Company dated March 23, 2023 (the “RHP”) filed with Registrar of Companies, Tamil Nadu at Chennai and are proposed to be listed on recognized stock exchanges (the “Stock Exchanges”) being BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”). For the purposes of the Offer, NSE is the Designated Stock Exchange.

The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended read with Regulation 31 of the Securities and Exchanges Board of India (Issue of Capital and Disclosure Requirements) Regulation 2018 (“SEBI ICDR Regulations”) and in compliance with Regulation 6(2) of the SEBI ICDR Regulations, wherein not less than 75% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”, the “QIB Portion”), provided that the Company and the Promoter Selling Shareholders in consultation with the BRLMs may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (the “Anchor Investor Portion”).

One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price in accordance with the SEBI ICDR Regulations. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion (other than Anchor Investor Portion) (“Net QIB Portion”).

Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining Net QIB Portion for proportionate allocation to QIBs. If at least 75% of the Offer cannot be allotted to QIBs, then the entire application money will be refunded forthwith. Further, (a) not more than 15% of the Offer shall be available for allocation to Non-Institutional Investors (out of which one third shall be reserved for Bidders with Bids exceeding ₹ 0.20 million and up to ₹1.00 million and two-thirds shall be reserved for Bidders with Bids exceeding ₹1.00 million) and (b) not more than 10% of the Offer shall be available for allocation to Retail Individual Investors in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price.

All potential Bidders, other than Anchor Investors, are mandatorily required to participate in the Offer through the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA Account (as defined hereinafter) and UPI ID in case of UPI Bidders, as applicable, pursuant to which the corresponding Bid Amount, which will be blocked by the Self Certified Syndicate Banks (“SCSBs”) or the Sponsor Bank(s), as the case may be, to the extent of their respective Bid Amounts. Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see “Offer Procedure” beginning on page 518 of the RHP.

JM Financial Limited, DAM Capital Advisors Limited, IIFL Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited are the Book Running Lead Managers to the Offer.