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Kaynes Technology IPO Details

Kaynes Technology IPO Details

Kaynes Technology IPO open on November 10 and closes on November 14, 2022. According to the DRHP filed by the company with SEBI, they are planning to raise up to Rs 857.82 Crore through this public issue.

With capabilities spanning the whole spectrum of electronics system design and manufacturing, Kaynes Technology is a leading end-to-end and IoT-enabled integrated electronics manufacturing provider (“ESDM”).

The company has more than three decades of experience supporting major players in the automotive, industrial, aerospace and defence, outer space, nuclear, medical, railway, Internet of Things (“IoT”), information technology (“IT”), and other segments through conceptual design, process engineering, integrated manufacturing, and life-cycle support.

The inclusion of high-mix, high-value items across industrial verticals is made possible by manufacturing infrastructure, which also makes it possible to create these products in varying or flexible volumes.

According to the services they provide, company businesses are divided into various sectors.

  1. OEM – Turnkey Solutions – Box Build (sometimes referred to as “OEM – Box Build”): We carry out “Build to Print” or “Build to Specifications” of complicated box builds, sub-systems, and products across a range of industry verticals.
  2. OEM – Turnkey Solutions – They provide turnkey electronics manufacturing services for PCBAs, cable harness, magnetics, and plastics, from prototyping to product realisation, including mass production.
  3. ODM: They provide ODM services in the areas of smart metering, smart street lighting, brushless DC (“BLDC”), inverter, gallium nitride-based charging, and offering IoT solutions for connecting smart consumer electronics.

Kaynes Technology Limited IPO – Noteworthy Highlights

  • Company are among the leading companies in the ESDM space to offer optimised product realization solutions to customers in flexible volumes and higher complexity products across industry verticals.
  • Kaynes were among the first companies in India to offer design-led electronics manufacturing to original equipment manufacturers (“OEMs”) using our mature embedded design capabilities (Source: F&S Report).

Objects of the Issue

The company proposes to utilize the Net Proceeds of the Fresh Issue towards funding the following objects:

  • Repayment/ prepayment, in full or part, of certain borrowings availed by company.
  • Funding capital expenditure towards expansion of our existing manufacturing facility at Mysore, Karnataka, and near our existing manufacturing facility at Manesar, Haryana.
  • Investment in our wholly owned Subsidiary, Kaynes Electronics Manufacturing Private Limited, for setting up a new facility at Chamarajanagar, Karnataka.
  • Funding working capital requirements of our Company.
  • General corporate purposes

Financial Highlights (Restated)

ParticularsPeriod ended on 30th June 2022FY 2021-22FY 2020-21FY 2019-20
Total Assets763.26622.42419.37378.12
Net Worth212201.82136.5195.76
Revenue from operations199.98710.35424.66370.17
Profit After Tax10.0541.689.739.36
Total Borrowing186.38169.55139.47143.83
(Rs in Crore)

Kaynes Technology IPO – Details

According to the DRHP filed by the company with SEBI, they are planning to raise Rs 857.82 Crore through this public issue.

Issue TypeBook Built Issue IPO
IPO PriceRs 559 to Rs 587 per share
Employee Discount15
Face ValueRs 10 per share
Market Lot25 shares
Issue Size[.] shares of Rs 10 (Aggregating up to Rs 857.82 Crore)
Fresh Issue[.] shares of Rs 10 (Aggregating up to Rs 530 Crore)
Offer for Sale55,84,664 shares of Rs 10 (Aggregating up to Rs 327.82 Crore)
QIB Shares OfferedNot more than 50% of the Offer
NII (HNI) Shares OfferedNot less than 15% of the Offer
Retail Shares OfferedNot less than 35% of the Offer
Listing AtBSE, NSE
Promoters1. Ramesh Kunhikannan
2. Savitha Ramesh
3. RK Family Trust  

Important Date – Kaynes Technology Limited IPO

IPO opens onNov 10, 2022
IPO closes onNov 14, 2022
Basis of Allotment publication dateNov 17, 2022
Initiation of RefundNov 18, 2022
Credit of shares to Demat AccountNov 21, 2022
IPO listingNov 22, 2022

Lot Size – Kaynes Technology IPO

ApplicationsLotsSharesAmount
Retail (Min)125Rs 14,675
Retail (Max)13325Rs 1,90,775
S-HNI (Min)        14350Rs 2,05,450
B-HNI (Min)        691,725Rs 10,12,575

Promoter Holding – Kaynes Technology IPO

Pre issue share holding79.78%
Post issue share holding67.39%

Also read: Uniparts India Limited IPO

SWOT Analysis – Kaynes Technology IPO

STRENGHTH

  1. Internet of Things (“IoT”) solutions enabled integrated electronics manufacturing player with end-to-end capabilities across the Electronics System Design and Manufacturing spectrum.
  2. Diversified business model with portfolio having applications across industry verticals.
  3. Long-standing relationships with marquee customer base.
  4. Global certifications for each industry vertical catered to and multiple facilities across India with advanced infrastructure.
  5. Strong supply chain and sourcing network.
  6. Track record of consistent financial performance.

WEAKNESS

  1. Company business is subject to seasonality.
  2. Promoters will continue to collectively hold majority of the shareholding in Company, which will allow them to influence the outcome of matters requiring shareholder approval.

OPPORTUNITY

  1. One of the industries in the nation that is expanding the fastest is electronics. In fiscal 2021, the Indian electronics market was valued at 6,711 billion (USD 91 billion) and was projected to reach 20,873 billion (USD 282 billion) in fiscal 2026, with a CAGR of 25.5%. This figure comprises both local production of electronics and imported electronic finished goods. Due to various government initiatives and the growth of India’s electronic ecosystem, domestic production makes up roughly 74% of the entire electronics market in Fiscal 2021, with a market value of 4,975 billion (USD 67 billion), and is predicted to increase to approximately 96% by Fiscal 2026, with a market value of 20,133 billion (USD 272 billion).
  2. Pursue inorganic growth through selective partnerships and acquisitions.

THREAT

  1. If company do not continue to innovate and further develop its business, or they are not able to keep pace with technological developments, company may not remain competitive and its business and results of operations could suffer.
  2. Company are exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact its results of operations.
  3. Increasing competition in the electronics system design and manufacturing industry may create pressures of pricing and market share that may adversely affect company business, prospects, results of operations, cash flows and financial conditions.

Miscellaneous Information

Download Prospectus (PDF)IPO DRHP
IPO RHP
Company Contact InformationKaynes Technology India Ltd
23-25, Belagola, Food Industrial Estate,
Metagalli P.O., Mysore – 570016,
Phone: +91 82125 82595
Email: [email protected]
Website: https://www.kaynestechnology.co.in/
IPO RegistrarLink Intime India Private Ltd
Phone: +91-22-4918 6270
Email: [email protected]
Website: https://linkintime.co.in/
IPO Lead Manager(s)1. DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd)
2. IIFL Securities Ltd

FAQ’s

Kaynes Technology IPO allotment on  November 17,  2022.

The lot size of Kaynes Technology IPO is 25 shares.

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