Avana Electrosystems Limited Makes Exceptional Debut with 31.36% Premium, Lists at ₹77.50 Against Outstanding Subscription

Avana Electrosystems Limited, incorporated in 2010 engaged in manufacturing customised Control and Relay Panels offering panels ranging from 11kv to 220kv for power system monitoring, control, and protection applications including transmission lines, power transformers, bus bar, capacitor bank for both indoor and outdoor usage plus MV and LV Panels, Protection Relays, and Substation Automation Systems, made an exceptional debut on NSE SME on January 20, 2026. After closing its IPO bidding between January 12-14, 2026, the company commenced trading with a premium of 31.36% opening at ₹77.50 and touched ₹81.35 (up 37.88% hitting upper circuit).

Avana Electrosystems Limited Listing Details

Avana Electrosystems launched its IPO at ₹59 per share with minimum investment of 4,000 shares costing ₹2,36,000. The IPO received outstanding response with subscription of 131.82 times - individual investors at 137.52 times, QIB at 54.97 times, NII at 219.02 times.

First-Day Trading Performance

Listing Price: Avana Electrosystems opened at ₹77.50 representing exceptional premium of 31.36% from issue price of ₹59.00, touched high of ₹81.35 (up 37.88% hitting upper circuit) and low of ₹73.65 (up 24.83%), with VWAP at ₹76.67.

Growth Drivers and Challenges

Growth Drivers:

Strong Growth Trajectory: Revenue increased 18% from ₹53.26 crore in FY24 to ₹62.93 crore in FY25, PAT surged 107% from ₹4.02 crore to ₹8.31 crore, exceptional ROE of 47.11% in FY25 (declining to 22.79% September 2025), ROCE of 53.71%, RoNW of 38.13%, healthy PAT margin of 13.52%, strong EBITDA margin of 20.36%.

Order Book Visibility: Order book worth ₹52.24 crore as of November 2025 providing revenue visibility, strong customer relationships with wide customer base across power sector.

Operational Capabilities: Customisation capabilities across multiple product lines, quality standard certifications and quality tests, experienced promoters and senior management team, geographical reach across India.

Technical Expertise: Specializes in control and relay panels ranging from 11kv to 220kv for power system monitoring, control, and protection, two manufacturing units in Peenya Industrial Estate Bengaluru.

Challenges:

Financial Metrics Decline: ROE declining from 47.11% in FY25 to 22.79% in September 2025, ROCE declining from 53.71% to 26.69%, RoNW declining from 38.13% to 20.46% raising sustainability concerns.

Operational Risks: Operating in competitive power sector equipment manufacturing segment, significant promoter dilution from 100% to 73.64%, OFS component of ₹4.68 crore versus ₹30.54 crore fresh issue.

Utilisation of IPO Proceeds

Manufacturing Facility: ₹11.55 crore for capital expenditure towards civil construction, internal electric work, and internal plumbing to set up integrated manufacturing unit enhancing production capabilities.

Working Capital: ₹8.60 crore for meeting working capital requirements supporting manufacturing operations and order execution.

General Corporate Purposes: ₹4.57 crore for general corporate purposes supporting operational needs.

Financial Performance

Revenue: ₹62.93 crore for FY25, growth of 18% from ₹53.26 crore in FY24, reflecting expanding control and relay panels manufacturing operations across power sector clients.

Net Profit: ₹8.31 crore in FY25, growth of 107% from ₹4.02 crore in FY24, demonstrating dramatic profitability improvement.

Financial Metrics: Exceptional ROE of 47.11% in FY25 declining to 22.79% September 2025, minimal debt-to-equity of 0.13, ROCE of 53.71% declining to 26.69%, PAT margin of 13.52%, EBITDA margin of 20.36%, price-to-book of 4.73x in FY25, post-issue EPS of ₹4.95, P/E of 11.91x, order book of ₹52.24 crore, borrowings of ₹5.69 crore, and market capitalisation of ₹167.24 crore representing exceptional listing premium of 31.36% touching upper circuit at 37.88% validating outstanding subscription of 131.82 times creating exceptional investor returns despite analyst concerns about fully priced issue.