Kaynes Technology Files Draft Papers With SEBI To Raise Rs 650 Crore Via IPO

Kaynes Technology India Ltd has filed preliminary papers with the capital markets regulator Securities Board of India (SEBI) to raise funds via an Initial Public Offer (IPO).

The IPO comprises a fresh issue of Rs 650 crore and an offer-for-sale of up to 7.2 crores by its current shareholders and promoters, accoring to to DRHP.

The OFS (Offer-For-Sale) consists of up to 30 lakh shares by Ramesh Kunhikannan and up to 35 lakh shares by Freny Firoze Irani. Irani has 11.36 per cent stake in the company, while Kunhikannan holds an 87.14 per cent.

The proceeds from the fresh issue worth Rs 130 crore will be used to repay debt and Rs 98.93 crore will be utilised for funding capital expenditure for its manufacturing facilities at Mysore and Manesar.

Also, the company plans to use Rs 149.30 crore towards investment in its arm Kaynes Electronics Manufacturing Pvt Ltd for setting up a new facility in Karnataka state. It will use Rs 114.74 crore from the proceeds towards funding its working capital requirements.

DAM Capital Advisors and IIFL Securities are the lead managers to the issue.

For Financial Year 21, the company's revenue was at Rs 420.63 cr as against Rs 368.24 crore a year ago. Net profit for the period was at Rs 9.73 crore versus Rs 9.36 crore last year.

About - Kaynes Technology India Ltd

Kaynes Technology is a Mysore-based leading end-to-end and IoT (Internet Of Things) solutions enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of Electronics System Design and Manufacturing (ESDM) services.

It has experience in providing conceptual design, process engineering, industrial, integrated manufacturing and life-cycle support for major players in the automotive, outer-space, aerospace and defence, railways, medical, IoT, information technology (IT), nuclear and other segments.

As of December 2021, it had a combined capacity to assemble over 600 million components and it served 313 customers in 20 countries globally. Furthermore, the firm operates eight strategically located manufacturing facilities in Himachal Pradesh, Karnataka, Haryana, Uttarakhand, and Tamil Nadu.