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)

Particulars	Period ended on 30th June 2022	FY 2021-22	FY 2020-21	FY 2019-20
Total Assets	763.26	622.42	419.37	378.12
Net Worth	212	201.82	136.51	95.76
Revenue from operations	199.98	710.35	424.66	370.17
Profit After Tax	10.05	41.68	9.73	9.36
Total Borrowing	186.38	169.55	139.47	143.83

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 Type	Book Built Issue IPO
IPO Price	Rs 559 to Rs 587 per share
Employee Discount	15
Face Value	Rs 10 per share
Market Lot	25 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 Sale	55,84,664 shares of Rs 10 (Aggregating up to Rs 327.82 Crore)
QIB Shares Offered	Not more than 50% of the Offer
NII (HNI) Shares Offered	Not less than 15% of the Offer
Retail Shares Offered	Not less than 35% of the Offer
Listing At	BSE, NSE
Promoters	1. Ramesh Kunhikannan 2. Savitha Ramesh 3. RK Family Trust

Important Date – Kaynes Technology Limited IPO

IPO opens on	Nov 10, 2022
IPO closes on	Nov 14, 2022
Basis of Allotment publication date	Nov 17, 2022
Initiation of Refund	Nov 18, 2022
Credit of shares to Demat Account	Nov 21, 2022
IPO listing	Nov 22, 2022

Lot Size – Kaynes Technology IPO

Applications	Lots	Shares	Amount
Retail (Min)	1	25	Rs 14,675
Retail (Max)	13	325	Rs 1,90,775
S-HNI (Min)	14	350	Rs 2,05,450
B-HNI (Min)	69	1,725	Rs 10,12,575

Promoter Holding – Kaynes Technology IPO

Pre issue share holding	79.78%
Post issue share holding	67.39%

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 Information	Kaynes 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 Registrar	Link 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

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