The initial public offer (IPO) of Kaynes Technology India received bids for 1,14,70,15 shares as against 1,04,70,246 shares on offer, according to stock exchange data 17:00 IST on Friday (11 November 2022). The issue was subscribed 1.10 times.

The issue opened for bidding on Thursday (10 November 2022) and it will close on Monday (14 November 2022). The price band of the IPO is fixed at Rs 559 to 587 per share. An investor can bid for a minimum of 25 equity shares and in multiples thereof.

The issue comprises both fresh issue of equity shares by the company and offer for sale by promoter selling shareholders. Fresh issue of equity shares aggregates to Rs 530 crore. The offer for sale involves selling of 55,84,664 equity shares [20,84,664 equity shares by Ramesh Kunhikannan (promoter) and 35,00,000 equity shares by Freny Firoze Irani (investor selling shareholder)].

On post issue expanded equity, the holding of the promoter selling shareholders will decline to 63.77% and that of investor selling shareholder to about 3.09%.

Of the net proceeds from the fresh issue, the company plans to utilize about Rs 130 crore will be used for repayment of debts, Rs 98.93 crore for funding capital expenditure towards expansion of existing Mysure and Manesar facilities, Rs 149.3 crore for investment in Kaynes Electronics Manufacturing, a wholly owned subsidiary that is setting up a new facility at Chamrajnagar, Rs 114.74 crore for working capital funding and balance for general corporate purposes.

Ahead of the IPO, Kaynes Technology India on Wednesday, 9 November 2022, raised Rs 256.89 crore from anchor investors. The board allotted 43.76 lakh shares at Rs 587 each to 28 anchor investors.

Kaynes Technology India (KTI) is an end-to-end and Internet of Things (IoT) solutions enabled integrated electronics manufacturing player, 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, IoT, Information Technology (IT) and other segments.

The company reported a net profit of Rs 10.05 crore and net sales of Rs 199.27 crore in the three months ended on June 2022.