Kaynes Technology India Ltd. IPO
Kaynes Technology India Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹587
Issue Price
Listing Price
₹775
Listing Price
Listing Gains
+₹188.00 (+32.03%)
Listing Gains
IPO Details
Bidding Dates
10 Nov - 14 Nov '22
Bidding Dates
Min. Investment
₹13,975
Min. Investment
Lot Size
25.00
Lot Size
Price Range
₹559 - ₹587
Price Range
Issue Size
817 Cr
Issue Size
Subscription Rate
- Retail Individual Investor4.10x
- Non-Institutional Investor21.21x
- Qualified Institutional Buyers98.47x
- Employees11.92x
About Company
Kaynes Technology India Ltd is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of electronics system design and manufacturing (ESDM) services.
The company provides conceptual design, process engineering, integrated manufacturing and life-cycle support for major players in the automotive, industrial, aerospace and defence, outer-space, nuclear, medical, railways, Internet of Things (IoT), Information Technology (IT) and other segments.
It is among the first Indian companies to offer design-led electronics manufacturing to original equipment manufacturers (OEMs).
The company operates eight strategically located manufacturing facilities across India in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand.
Kaynes Technology IPO opens for public subscription on November 10 and closes on November 14. The company is selling shares in the issue at a price band of Rs 559 to 587 per share. At the higher price band, it plans to raise Rs 857.82 crore from the IPO, which comprises a fresh issue of equity shares aggregating upto Rs 530 crore and an offer for sale (OFS) of 55,84,664 equity shares aggregating up to Rs 327.82 crore.
The company plans to utilise the issue proceeds to repay debts and meet working capital requirements. It will also be used to fund the expansion of the company’s existing manufacturing facilities at Mysuru and Manesar and setting up of a new facility at Chamarajanagar in Karnataka for subsidiary Kaynes Electronics Manufacturing.
Important Dates - Kaynes Technology IPO
| Application opens on | 10th November 2022 |
| Last date of application | 14th November 2022 |
| Date of Allotment | 17th Novemberber 2022 |
| Refund begins from | 18th Novembber 2022 |
| Credit of shares to Demat | 21st November 2022 |
| Listing date | 22nd November 2022 |
Why should you invest in Kaynes Technology India Ltd. IPO?
Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing player, engaged in concept co-creation with the customers, followed by product realization and life-cycle support. The company has been profitable every year since its inception. It has been delivering consistent financial performance, despite the impact of the COVID-19 pandemic on its business operations. It has a diversified business model with portfolio having applications across industry verticals
Kaynes Technology Ltd IPO Noteworthy Highlights
Here are some of the key details and information about Kaynes Technology IPO that investors should know before investing:
- Kaynes Technology has a portfolio of hardware and software accelerators, cloud platform-based service and solution offerings which includes ODM product design, IoT data and analytics platform, and vertical IoT solutions.
- Ramesh Kunhikannan, Savitha Ramesh and RK Family Trust are the promoters of the company.
- The total promoter shareholding in the company is 79.78%, and the rest is held by the public, including investors Freny Firoze Irani, Acacia Banyan Partners, Volrado Venture Partners Fund II, and Ashoka India Equity Investment Trust Plc.
- After the IPO, the promoter shareholding in Kaynes Technology will drop to 67.39%.
- Kaynes Technology IPO lot size is 25 shares, and a retail-individual investor can apply for up to 13 lots, making the total investment of 325 shares or Rs 190,775.
- DAM Capital Advisors and IIFL Securities are the joint Book Running Lead Managers (BRLMs) to the issue.
- 50% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 35% for retail investors. The company has reserved Rs 1.5 crore worth of shares for its employees in the IPO and is offering them a discount of Rs 15.
- Kaynes Technology has already raised Rs 130 crore via its pre-IPO placement by issuing 23.38 lakh shares at a price of Rs 555.85 per share.
Financial Snapshot - Kaynes Technology IPO
Kaynes Technology India has delivered consistent financial performance over the years and has been profitable every year since its inception. Check out its financial performance for recent years:
| Financial Year | Total Assets | Total Revenues | Net Profit |
|---|---|---|---|
| March 2020 | Rs 378.12 crore | Rs 370.17 crore | Rs 9.36 crore |
| March 2021 | Rs 419.37 crore | Rs 424.66 crore | Rs 9.73 crore |
| March 2022 | Rs 622.42 crore | Rs 710.35 crore | Rs 41.68 crore |
Kaynes Technology India Ltd. IPO - SWOT Analysis
Strengths
Kaynes Technology has a mature and reliable supply chain network and has long-term relationships with its vendors within India and outside India, which has led to improvement in credit terms over the years. The company also has a strong track record of consistent financial performance.
Weaknesses
The company’s top 10 customers accounted for 51.02% and 62.81% of its revenue from operations in Fiscal 2022 and the three months ended June 30, 2022, respectively. Revenue contribution from top 1, top 5 and top 10 customers has fluctuated in the last three fiscals. It had negative net operating cash flows in the past and may continue to have negative cash flows in the future.
Opportunities
Kaynes Technologies intends to leverage on the experience and capabilities of its in-house design and research and development team to further its ODM capabilities. The company intends to undertake vertical-focused expansion to expand its business.
Threats
The company operates in the electronics system design and manufacturing (ESDM) industry, which is highly competitive. Increasing competition in the industry may create pressures on pricing and market share that may adversely affect its business, prospects, results of operations, cash flows and financial condition.
How to apply for Kaynes Technology India Ltd. IPO?
You can apply for the Kaynes Technology India Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Kaynes Technology India Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
