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Kaynes Technology India Ltd is planning to raise Rs 857.82 crore through an initial public offering. The subscription for the IPO will be open from November 10 to November 14, 2022. The price band is fixed at Rs 559-587 per equity share.
The IPO comprises of fresh issue of shares worth Rs 530 crore and offer for sale of 55,84,664 shares aggregating up to Rs 327.82 crore. The face value is set at Rs 10 apiece.
Further, employees of the company will get a discount of Rs 15 apiece to the final issue price.
Company Summary
Kaynes Technology is an IoT solutions enabled integrated electronics manufacturing company, 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.
The company operates under the following business verticals: OEM – Turnkey Solutions – Box Build, OEM – Turnkey Solutions – Printed Circuit Board Assemblies, Original Design Manufacturing services, Product Engineering and IoT Solutions.
Kaynes Technology operates eight strategically located manufacturing facilities across India in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand. The company’s facilities are located in proximity to their customers, allowing them to service their requirements cost-effectively.
As of June 30, 2022, Kaynes Technology had a combined capacity to assemble over 150 crore (on an annualized basis) components and has an exclusive line for ‘Green Manufacturing’ that is compliant with Directive 2002/95/EC Restriction of Hazardous Substances (“RoHS”). Kaynes’ manufacturing infrastructure also includes one design facility and two service centres.
The company has a dedicated research and development facility located within their facility at Mysuru, Karnataka – Unit – I. As of June 30, 2022, the company’s R&D team comprised of 19 employees, which including engineers, designers and other workers.
The company has established strong and long-term relationships with a large customer base diversified across verticals and geographies. In the three months ended June 30, 2022, it has served 229 customers in 21 countries globally and multiple industry verticals such as automotive, aerospace and defence, industrial, railways, medical and IT / ITES.
Company Strengths
- The company is an IoT solutions enabled integrated electronics manufacturer, having capabilities across the spectrum of Electronics System Design and Manufacturing services.
- Diversified business model and product portfolio having applications across industry verticals.
- Long-standing relationships with marquee clients.
- Global certifications for each industry vertical and multiple facilities across India with advanced infrastructure.
- Strong supply chain and sourcing network.
- Track record of consistent financial performance
- Experienced promoters and senior management with extensive knowledge of the sector
Company Financials
Period | 3MFY23 | FY22 | FY21 | FY20 |
Total Assets | 763.26 | 622.42 | 419.37 | 378.12 |
Total Revenue | 199.98 | 710.35 | 424.66 | 370.17 |
Profit After Tax | 10.05 | 41.68 | 9.73 | 9.36 |
EBITDA | 24.56 | 93.67 | 40.89 | 41.33 |
EBITDA margin | 12.33% | 13.26% | 9.72% | 11.22% |
ROE | 4.78% | 24.5% | 8.08% | 10.51% |
ROCE | 5.54% | 24.44% | 13.47% | 14.42% |
Debt to Equity ratio | 0.88% | 0.84% | 1.02% | 1.5% |
*All numbers are in Rs crore except for percentages
Purpose of the IPO
- Repayment/ prepayment, in full or part, of certain borrowings availed by the company totalling Rs 130 crore.
- Funding of capital expenditure towards expansion of their existing manufacturing facility at Mysuru, Karnataka, and near their existing manufacturing facility at Manesar, Haryana aggregating up to Rs 98.93 crore.
- Investment in their wholly-owned subsidiary, Kaynes Electronics Manufacturing Private Limited, for setting up a new facility at Chamarajanagar in Karnataka, aggregating up to Rs 149.30 crore.
- Funding for working capital requirements of the company totalling up to Rs 114.74 crore
- General corporate purposes.
- The net proceeds from offer for sale will be received by selling shareholders after deducting the offer related expenses and relevant taxes.
Company Promoters
Ramesh Kunhikannan, Savitha Ramesh and RK Family Trust are the promoters of the company.
IPO Details
IPO Subscription Opening Date | 10-Nov-22 |
IPO Subscription Closing Date | 14-Nov-22 |
Face Value | Rs 10 per share |
Price Band | Rs 559 to Rs 587 per share |
Lot Size | 25 Shares |
Issue Size | Rs 857.82 crore |
Fresh Issue | Rs 530 crore |
Offer for Sale | 55,84,664 shares aggregating up to Rs 327.82 crore |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount |
Retail (Minimum) | 1 | 25 | Rs 14,675 |
Retail (Maximum) | 13 | 325 | Rs 1,90,775 |
Small HNI (Minimum) | 14 | 350 | Rs 2,05,450 |
Large HNI (Minimum) | 69 | 1,725 | Rs 10,12,575 |
Allotment Date
Timeline | Date |
Allotment of shares | 17-Nov-22 |
Initiation of refunds | 18-Nov-22 |
Credit of shares to demat account | 21-Nov-22 |
Listing date | 22-Nov-22 |
To check you allotment, click here