DEAR ONES,
ANY IDEA ABOUT THE RIGHTS ISSUE STRUCTURE? IT IS ALL AT ONCE OR IN INSTALLATIONS. IF THE PREMIUM IS HIGHER THAN RT. ISSUE MAY FLOP. KEEPING MONEY in RESERVE to subscribe. hope for a happy Landing
RAJAN
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Sale of 2.07% of shares in open market from the complete promoter entity (Not an individual person but the complete promoter group). The promoter holding is down from 40.87% to 38.80%.
Normally the selling of shares is not a direct bearish or in-confidence sign for a company (as stated in books), but for a company in a major growth phase and market cap of 4000 crores, reduction in promoter holding demands more research.
Probable reason of opex or green/brown field expansion can never be strike off the table.
Absence of con-call makes it tough to monitor this situation.
Requesting fellow VP members for more insights.
Discl. Invested from lower levels
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Did you find anything on this? Itâs down further at 130 levels now and looks like an interesting buy to me.
I tried to dig but wasnât able to find anything substantial. Lack of con-calls is a real thorn in this bush.
Another one thing which has recently started popping out is the increase in trade receivables compared to revenue growth. Again, nothing fishy on its own but answers / reasons for this would have been encouraging.
Q3 results were encouraging with good expansion of margins and revenues.
Overall bullish on the company and the contract wins it usually scores / scored.
Technical Analysis - The chart looks to be taking support at the previous consolidation levels of ~130 around. To run again, has to break 150 with decent volumes.
Discl. - All views are personal. (No recommendation) / Invested as before.
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Company has received a purchase order worth of Rs.43.25 Crores from M/s. NewSpace India Limited For Supply, Installation and Commissioning of Devices for Xponders
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Avantel announced a strategic partnership with Safran aerospace to design, manufacture, and integrate multi-band antennas in India, delivering high-performance, sovereign solutions to support the growing demands of space communications across the region.
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Avantel has received a Purchase Order worth
of Rs.11.36 Crores (Incl. Taxes) from Goa Shipyard Limited for Supply of Satcom Systems
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They are likely to win this tender of about 30-50cr form my guess
This is from DRDO for development and testing of SDR
plz note this has been sourced form publicly available info and I can be wrong
Disc- not invested, evaluating
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Promoters sold 1,317,013 shares on May 6, 2025. Assuming this is sold at âš110 per share, total value is around âš14.5 crores.
This is one day before the rights issue record date, that is, 7 May 2025. What can we infer from this?
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Can it be said that they raised money for subscriptions of right issue ?
That is a possibility. But why would they do it on the day before record date? That would mean they lose Rights Entitlements (about 10,884 REs).
If they sold it on or after the record date, they would have retained REs and raised money for applying for rights at the same time.
Maybe, this is simply due to market uncertainty as the result of the tension between India and Pakistan.
Not sure yet. It will be interesting to know the change in the shareholding after rights issue.
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Is there any news of Avantel getting any new orders after the recent conflict and new defense based orders/procurement kicking in?
@abhinav_sinha so the above SDR order which I posted avantel had the lowest bid of 22cr but some company came at put a bid of 100rs I donât know why they did that and what would happen to this tender now
second they won a tender from Mazagon Dock Shipbuilders Ltd of about 10.85cr
another 15-20cr of tender for Dual band full motion antenna they have participated of about 10-15cr but lot of competition here almost btw 10-12 vendors
Also their Imeds is doing decent recently they got approval form CDSCO for thier oxygen concentrator. Earlier it was only for the staple
Also I was trying to map their order book but kind of failed
this is based on what number they announce per AGM around 30th of may then add the new orders won and subtract the orders executed so as per that it should be around 200-250cr but lets see
plz note all the info above is public ally available may be exchange notification will come in some time
disc - evaluation
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In DRDO design and development contracts, some companies quote as low as Rs 1 (essentially zero) to win the tender if they feel that:
- The product/technology has a large market
- The company will gain immense knowledge while co-developing the product with DRDO
- The company has the resources and willingness to invest its own capital to develop the product
So in this case it seems that Lekha Wireless is the lowest bidder and that they will win the tender.
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Can you please guide me to the resource from which you availed this, since I know a friend and he did say that low bidding is allowed in DRDO ?
But wouldnât such a low bid normally fail the âsmell testâ, as in, seem too good to be true?
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It was a two BOQ bid where Lekha Wireless bid 100 Rs strategically for BOQ 1 and overloaded on BOQ 2.
Itâs mentioned in BOQ 1 that âKindly fill details in BoQ2 form only.â
Thereâs ambiguity here. If rates were to be filled in BOQ 2 only then Avantel stands L1 i guess. Otherwise lekha wireless is L1 and difference between L1 and L2 for BOQ1+BOQ2 is 4.135 Cr
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1.Key Growth Drivers
Execution of Large Projects:
Indian Navy: 1 KW & 5 KW HF projects (high power radio communication).
Indian Railways: RTIS (Real Time Train Information Systems) â 6300+ units supplied for locomotive tracking.
Multi Utility Helicopters (Lockheed Martin, USA): MSS (Mobile Satellite Services) for helicopter platforms.
Expansion of Customer Base & High-value Orders:
New Space India Limited (NSIL)/ISRO: Orders for 30,000 MSS terminals.
Defence, Railways, Shipyards, Atomic Energyâfrequent new orders.
Turnover & Profit Growth:
Crossed âš100 crore (FY22), âš150 crore (FY23), âš223 crore turnover (FY24: highest since inception).
Profit before tax up 68.9% YoY in FY23.
2. New Revenue Streams
Medical Devices Subsidiary:
Formation of wholly-owned subsidiary Imeds Global Private Limited (FY22).
New manufacturing facility in Andhra Pradesh MedTech Zone (APMTZ), Visakhapatnam.
Products: Surgical staplers/removers, non-invasive ventilator, patient monitor, syringe pump, CPAP, BiPAP, oxygen concentrators (development/commercialization from FY24+).
Targeting indigenous, cost-effective healthcare equipment for growing Indian demand post-pandemic.
Space Technology and Services (Emerging):
Ground Station as a Service (GSAAS) proposal.
SATCOM (Satellite Communication) as a Service using a dedicated satelliteâinitiative with ISRO/IN-Space.
Investment in a ~70,000 sq ft facility for space technology R&D and manufacturing (Hyderabad, operational in FY25).
- New Products & Innovations
Defence & Strategic Electronics:
1 KW HF Software Defined Radios (SDR), SCA 4.1 architecture (custom for Indian Air Force).
5 KW HF Transmitterâimport substitute for Indian Navy.
MSS M-II (Mobile Satellite Services) using Digital Beam Forming, LDPC coding: more reliable high-speed comms for helicopters.
RTIS Terminals for real-time locomotive tracking and automated charting (Indian Railways).
Initiatives in airborne, marine, and multi-band SCA compliant SDRs, Ku-band and new frequency terminals.
Indigenous air defence radar development (for Indian Army, in progress).
Innovation Highlights:
Persistent in-house R&D (recognized by DSIR, Govt. of India).
Technology absorption for wireless, signal processing, embedded systems, and software integration.
Import substitution through indigenous design and manufacturing (DAP 2020 compliance for defence orders).
Advanced wind profiler radar, environmental radiation monitoring, and electronic beamforming for SATCOM.
4. Unique Selling Proposition (USP):
Indigenous, Customized Solutions: Deep focus on âMake in Indiaâ and âAtmanirbharta.â Fully in-house conceptualization, design, and manufacturingâcatering to highly specialized requirements of Defence and other strategic domains.
Cutting-edge R&D: Recognized in-house R&D lab; ability to swiftly move from concept to execution and respond to customer-specific needs.
Trust & Relationships: Established, deep-rooted ties with Indian Defence, Railways, ISRO, and government bodiesâpositioned as a trusted partner for sensitive and strategic projects.
- Business Model:
Core Model: Design, manufacture, and supply of wireless/satellite communication equipment, embedded systems, radars, and customized solutions for defence, space, and government.
Revenue from project-based execution and supply contracts.
Focus on sectors with high entry barriers and repeat business.
Service & Support: Includes after-sales, upgrades, and customer support for mission-critical solutions.
Diversification:
Medical devices (via subsidiary)âleveraging electronics and manufacturing expertise in new verticals.
Space/ground station servicesâpotential for recurring service-based revenues.
R&D-Driven Value Addition: In-house development allows rapid innovation, proprietary product development, and sustained competitive advantage.
Summary of Major Initiatives and Transitions:
From FY22 to FY24, Avantel has robustly expanded within its defence/strategic core, broadened into medical devices, and proactively positioned for emerging opportunities in Indian space privatization and service-based models.
New revenue streams and innovation are visible in medical devices (Imeds Global), high-value defence projects, and space technology services.
The USP remains indigenous, high-tech, and customer-specific solutions for strategic sectors, fuelled by R&D and robust government/defence relationships.
The business model is evolving from hardware supply to augmented, service-based, and multi-vertical operations rooted in technology innovation and reliability.
Orderbook growth and orderbook quality remains the key monitorable here to guage growth in the next 2-3 years.
AVANTEL R&D FOCUS AND INNOVATIONS.pdf (114.2 KB)
AVANTEL AGM SUMMARIES.pdf (106.8 KB)
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Annual Report for FY25 is out.
https://www.bseindia.com/xml-data/corpfiling/AttachLive/f66c951e-985d-4fc5-a260-b35fea769431.pdf