The indicative price range for the transaction is ₹2,150 to ₹2,302 per share, with the offer potentially carrying a discount of up to 6.6% to the company’s current market price. The deal also comes with a 180-day lock-up period on any further sale of shares by the sellers.
This month, brokerage firm Nomura retained its ‘Buy’ rating and raised its target price sharply. Nomura raised its target price to ₹2,767.32 per share from ₹2,211.24 earlier, implying an upside of nearly 26% from Friday’s closing price of ₹2,196.60. The revised target is also the highest among all brokerages covering the stock.
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Nomura said Avalon’s proposed Zollner joint venture will expand the company into advanced electronics manufacturing services (EMS) in Europe, improving its long-term growth visibility and adding global customers.
The brokerage said the partnership will expand Avalon’s European presence and enable entry into healthcare, life sciences, and test and measurement segments. These new verticals offer high-complexity manufacturing and long product cycles, according to Nomura.
The JV investment is estimated at $30–50 million. At the midpoint investment of $40 million, Nomura estimates that 10x asset turns and a 15–17% EBITDA margin could boost Avalon’s FY29 earnings per share by 21%. According to Bloomberg data, of the 19 analysts covering the stock, nine have a Buy rating, four recommend Hold, while six gave it a Sell rating.
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Shares of Avalon Technologies Ltd ended at ₹2,340.00, up by ₹31.70, or 1.37%, on the BSE.