Promoters Bhaskar Srinivasan, BBS Family Trust and KBS Family Trust are poised to offload up to 6% of Avalon Technologies in a block deal that will fetch roughly ₹861.9 crore. The indicative range sits at ₹2,150 to ₹2,302 per share, meaning a discount of up to 6.6% versus the current market price. A 180‑day lock‑up will bar the sellers from trading any remaining stake during that period.
At the market close, Avalon traded at ₹2,340 on the BSE, a rise of ₹31.70 or 1.37% from its previous close, putting the block‑deal price well below the prevailing level. Using the upper end of the range, the discount translates to about ₹100 per share off the closing price.
Nomura, which had retained a "Buy" stance, bumped its target up to ₹2,767.32 from ₹2,211.24, a 26% upside over Friday's close. The brokerage also flagged the new Zollner joint venture as a catalyst for higher margin and global exposure. With nine analysts recommending "Buy", four "Hold", and six "Sell", the revised target sits at the top end of the consensus.
The joint venture, valued at $30–50 million, is projected to deliver 10‑fold asset turns and lift EBITDA margins to 15–17%. Nomura estimates that the alliance could lift FY29 earnings per share by 21%, thanks to entry into high‑complexity segments such as healthcare and life sciences.
Looking ahead, Avalon’s next earnings call will shed light on how the JV is performing and whether the block‑deal proceeds will be earmarked for debt reduction or capital expenditure. Investors will also watch whether the 180‑day lock‑up triggers a liquidity crunch as the block sale completes. With the market already priced in a 26% upside, the next few weeks will be a test of the stock’s resilience to the combined effects of a major ownership shift and a strategic partnership.