Kaynes Technology India Limited has come up with an initial public offer (IPO). It will open on November 10-14, 2022 at Rs.559-587 a share. The IPO issue size is around Rs.857.82 crores. The minimum bid will be for 25 shares and in its multiples thereafter.
Overview
Kaynes Technology India Ltd was incorporated in the year 2008. It is an 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 has experience in providing 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. Its business is classified based on the stage of services that it provides to customers. The company classify its operations under the following business verticals: OEM – Turnkey Solutions – Box Build, OEM – Turnkey Solutions – Printed Circuit Board Assemblies, ODM & Product Engineering and IoT Solutions.
Over the years, Kaynes Technology has focused on creating robust manufacturing systems and processes that comply with health and safety, as well as environmental and social and governance requirements. Its operations comply with global standards and facilities have 10 global accreditations, making it the most certified ESDM company in India. Also, it has long-term relationships with a large customer base diversified across verticals and geographies.
Website – https://www.kaynestechnology.co.in/
Promoters
| Ramesh Kunhikannan – 79.74% | Savitha Ramesh – 0.04% |
| RK Family Trust – Negligible |
Promoter Holding
| Pre-Issue Shareholding – 79.78% | Post-Issue Shareholding – 67.39% |
Strength & Weakness
| Strengths | Weaknesses |
| Diversified business model | Increasing competition in Industry |
| Global certifications for each industry vertical | Negative net operating cash flows in the past |
| Strong supply chain and sourcing network | Business is manpower intensive |
| Track record of consistent financial performance | Rely on the constant supply of semiconductors from overseas market |
| Experienced Promoters and management | Business is subject to seasonality |
| Improving efficiency through backward integration | Requires significant working capital requirements |
| To pursue inorganic growth through selective partnerships and acquisitions | Dependent on factors affecting the product costs |
Products
| OEM – Box Build | OEM – PCBAs |
| ODM | Product Engineering & IoT Solutions |
Industries
| Automotive | Industrial |
| Aerospace & Defence | Nuclear |
| Medical | Railways |
| IoT / IT and Others | Consumer |
Customers
| Agappe Diagnostics Limited | Canyon Aero |
| Frauscher Sensor Technology India Pvt Ltd | Hitachi Rail STS India Pvt Ltd |
| India Japan Lighting Pvt Ltd | Siemens Rail Automation Pvt Ltd |
| Iskraemeco India Pvt Ltd | Tonbo Imaging India Pvt Ltd |
Competitors
| Bharat FIH | Dixon Technologies |
| Amber Enterprises | Syrma SGS Technology |
Company Financials
| Year | Revenue (in Crore) | Profit (in Crore) |
| 31-Mar-2020 | 368.24 | 9.36 |
| 31-Mar-2021 | 420.63 | 9.73 |
| 31-Mar-2022 | 706.25 | 41.68 |
| 30-Jun-2022 | 199.27 | 10.05 |
Object of Issue
1) To carry out the Offer for Sale of Equity Shares by the Selling Shareholders
2) Repayment/ prepayment, in full or part, of certain borrowings availed by our Company
3) Funding capital expenditure towards expansion of existing manufacturing facility at Mysore, Karnataka, and near the existing manufacturing facility at Manesar, Haryana
4) Investment in wholly owned Subsidiary, Kaynes Electronics Manufacturing Private Limited, for setting up a new facility at Chamarajanagar, Karnataka
5) Funding working capital requirements of our Company
6) General corporate purposes
Kaynes Technology IPO Lot Size
| Application | Lot | Shares | Amount |
| Retail (Min) | 1 | 25 | Rs.14,675 |
| Retail (Max) | 13 | 325 | Rs.1,95,775 |
| S-HNI (Min) | 14 | 350 | Rs.2,05,450 |
| B-HNI (Max) | 69 | 1,725 | Rs.10,12,575 |
Kaynes Technology IPO Details
| IPO Opening Date | November 10, 2022 |
| IPO Closing Date | November 14, 2022 |
| Face Value | Rs.10 per Equity Share |
| IPO Price | Rs.559-587 per share |
| Employee Discount | Rs.15/share |
| Market Lot | 25 shares |
| Minimum Order Quantity | 25 shares |
| Listing At | NSE, BSE |
| No. of shares offered (OFS) | 55,84,664 shares |
| Issue Size | Up to Rs.857.82 Crore |
| QIB Shares Offered | 50% of the offer |
| Retail Shares Offered | 35% of the offer |
| NII/HNI Shares Offered | 15% of the offer |
Kaynes Technology IPO Timetable
| IPO Date | November 10-14, 2022 |
| Allotment Date | November 17, 2022 |
| Initiation of Refunds | November 18, 2022 |
| Credit of share to Demat a/c | November 21, 2022 |
| IPO Listing Date | November 22, 2022 |
Allotment Status
Link Intime – https://linkintime.co.in/
Book Lead Managers
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Registrar
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