Avon Weighing Systems IPO receives 45 times subscription

The Initial Public Offering (IPO) of Avon Weighing Systems Limited has received overwhelming response from investors with the issue receiving subscription of 45 times, according to the data available. The company came out with an IPO through fixed price at par (Rs 10).

Keynote Corporate Services Limited is the Lead Manager for the Issue and Datamatics Financial Services Limited is the Registrar to the Issue.

Avon proposes to part finance its Rs 17.30 crore plan through the net proceeds of the Issue. The plan include setting up of facility for manufacturing of a range of weighing systems, open four showrooms for display and sale of its weighing systems in Mumbai, Delhi, Chennai and Hyderabad, and purchase of additional office premises in Mumbai.

The project is proposed to be funded through IPO of Rs 9.83 crores, promoters contribution of Rs 4.36 crores, internal accruals of Rs. 0.50 crore and a term loan of Rs.2.60 crores from Bank of India.

The proposed manufacturing plant will be set up at Baddi in Himachal Pradesh with technical assistance from Tanita Corporation of Japan. Avon will be able to enjoy fiscal incentives provided by the Himachal Pradesh government for setting up plant at Baddi.

Source : Equity Bulls

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