BSE & NSE
10 Nov - 14 Nov '22
₹559 - ₹587
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.
|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|
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
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.
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 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.
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.
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.
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.
You can apply for the Kaynes Technology India Ltd. IPO in these ways:
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.
When will the Kaynes Technology IPO open?
Kaynes Technology IPO will open for subscription on November 10 and close on November 14.
What is the price band for Kaynes Technology IPO?
Kaynes Technology IPO price band is Rs 559 to 587 per share.
Who is taking part in the OFS?
The company’s promoter Ramesh Kunhikannan will sell 20.84 lakh shares, while investor Freny Firoze Irani will sell the remaining 35 lakh shares in the OFS.
What will be the post-issue implied market cap of the company?
The post-issue implied market cap will be Rs 3,275 – 3,413 crore.
What will be the promoter shareholding in Kaynes Technology after the IPO?
The promoter shareholding in Kaynes Technology after the IPO will reduce to 67.39% from 79.78%.
Who are Kaynes Technology IPO Lead Managers?
DAM Capital and IIFL Securities are the Book Running Lead Managers (BRLMs) to this issue.
Who is the registrar of the issue?
Link Intime India Pvt Ltd. is the registrar for Kaynes Technology IPO.
What is Kaynes Technology IPO Minimum and Maximum Lot Size?
Kaynes Technology IPO lot size is 25 shares and in multiple thereof. A retail-individual investor can opt for up to 13 lots.
When will Kaynes Technology IPO allotment take place?
The finalisation of the basis of allotment for Kaynes Technology IPO will be done on November 17, and the allotted shares will be credited to investors’ demat accounts by November 21.
When and where will the Kaynes Technology shares be listed?
Kaynes Technology shares arse proposed to be listed on November 22, 2022, on BSE and NSE.