Key Transaction Details

The Board of Directors of Avalon Technologies Limited, at its meeting held on September 03, 2026 (commencing at 05:00 PM IST and concluding at 05:25 PM IST), approved the execution of a Joint Venture Agreement (JVA) with Zollner Elektronik AG, a leading European electronics manufacturing services (EMS) company.

The joint venture company will be named "Zollner Avalon Private Limited" or such other name as may be approved by the Registrar of Companies.

Shareholding Structure

  • Initial shareholding: Zollner 51%, Avalon 49%
  • After occurrence of conditions set out in the JVA, Avalon may elect to acquire incremental 2% stake in the Company and own 51%
  • The company will initially be incorporated as a wholly owned subsidiary of Avalon
  • Following incorporation, Zollner will subscribe to equity shares representing 51% of the Company's issued and paid-up share capital
  • The Company will then accede to the JVA by executing a deed of accession

Business Scope

The joint venture will establish a long-term India-based manufacturing and services platform for:

  • Printed circuit board assembly (PCBA)
  • Box-build and system integration
  • Testing and validation
  • Industrialization support
  • Sourcing and supply-chain coordination
  • Logistics and related after-sales services

Manufacturing operations will be restricted to India, supporting domestic business, exports from India, and selected multi-region or global customer programs where India forms part of the agreed manufacturing footprint.

Significant Terms of JVA

  • 51% shareholder (Zollner) has right to appoint 3 directors to the board
  • 49% shareholder (Avalon) has right to appoint 2 directors
  • Standard pre-emptive rights available to both shareholders for new issuance of shares
  • Share transfers subject to right of first refusal and tag-along rights
  • Customary restrictive covenants including non-compete and non-solicitation clauses
  • Call option for Avalon to acquire incremental 2% shareholding within two years following the third anniversary of commercial production commencement

Subsidiary Incorporation Details

The Board also approved incorporation of a wholly owned subsidiary:

  • Name: "Zollner Avalon Private Limited" (subject to ROC approval)
  • Country of Incorporation: India
  • Industry: Electronic Manufacturing Services
  • Authorized share capital: ₹2,00,000 comprising 20,000 equity shares of ₹10 each
  • Initial subscription: Avalon to subscribe to 9,800 equity shares of ₹10 each
  • Initial paid-up capital: ₹98,000
  • Consideration: Cash (Bank Transfer)

Regulatory and Approval Status

The Proposed Transaction is subject to:

  • Receipt of requisite approvals
  • Finalization of other definitive documents
  • Fulfilment of conditions prescribed in the JVA
  • Name reservation and incorporation formalities with Registrar of Companies

Relationship Details

  • Zollner is not related to Avalon's promoter/promoter group/group companies
  • The Joint Venture Agreement does not constitute a related party transaction
  • Future transactions between Avalon and the Company will be undertaken on arm's length basis

Governance and Compliance

The disclosure is made pursuant to Regulation 30 read with Schedule III, Part A, Para A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.