Avalon Technologies543896Subsidiary or JV

Incorporation of Zollner Avalon as wholly owned subsidiary; Zollner to subscribe to 51% later

Avalon set up Zollner Avalon Private Limited as a 100% subsidiary for electronic manufacturing services.

By ScoutQuest · Tue 20 Oct 2026, 12:07 PM IST · 2 min read

100%Initial holding of Avalon in Zollner Avalon

Initial holding of Avalon in Zollner Avalon: 100%.

Equity Shares Subscribed by Avalon: 9,800 equity shares of INR 10 each
Paid-up Capital After Subscription: INR 98,000/-
Zollner Proposed Stake: 51% of the issued and paid-up share capital under the JVA

What happened

Avalon Technologies Limited has incorporated a wholly owned subsidiary named Zollner Avalon Private Limited. The Ministry of Corporate Affairs issued the Certificate of Incorporation on October 19, 2026, and the company informed the exchanges on October 20, 2026. The company had made an earlier disclosure on September 03, 2026 on this plan.

How the shareholding will move

At the start, 100% of the issued and paid-up share capital of Zollner Avalon is held by Avalon Technologies Limited.
After that, Zollner will subscribe to equity shares representing 51% of the issued and paid-up share capital of Zollner Avalon, subject to satisfaction of conditions set out in the Joint Venture Agreement (JVA).
Following incorporation, the new company will accede to the JVA by executing a deed of accession.

The money involved

Avalon shall subscribe to 9,800 equity shares of INR 10 each.
After this subscription, the issued and paid-up capital of Zollner Avalon shall be INR 98,000/-.
The company has been incorporated with an authorised share capital of INR 2,00,000, comprising 20,000 equity shares of INR 10 each.
The consideration (subscription money) shall be paid in cash, by bank transfer.

What the new company will do

It belongs to the Electronic Manufacturing Services industry and shall serve as a manufacturing and services platform for printed circuit board assembly, box-build and system integration, testing, validation, industrialization support, sourcing, supply-chain coordination, logistics and related after-sales services. Its business is not outside the main line of business of Avalon.

Related party point

Zollner Avalon Private Limited shall be a related party of Avalon. The subscription is considered to be at arm's length and there is no other interest in the company at this stage.

What this means for a retail investor

This is a step in putting a joint venture structure in place: the entity is first created as a fully owned subsidiary, with the partner's 51% subscription to follow once JVA conditions are met.
The amounts are small in absolute terms - paid-up capital of INR 98,000/- after Avalon's subscription of 9,800 shares of INR 10 each.
The stated purpose is to add a manufacturing and services platform in printed circuit board assembly and related services, which stays within Avalon's existing electronics manufacturing services line of business.
The change of shareholding to 51% with Zollner is subject to conditions and a deed of accession, so the structure described is what the company intends to put in place going forward.

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