Kaynes Technology IPO: Kaynes Technology files papers with Sebi to raise funds through the IPO

NEW DELHI: Kaynes Technology India Limited (KTIL), an integrated electronics manufacturing provider with end-to-end and IoT solutions, has filed preliminary filings with Capital Markets Regulator Sebi to raise funds through an initial public offering (IPO). The IPO consists of a new issue of shares totaling Rs. 650 crore and an Offer to Sell (OFS) of up to 7.2 crore shares by a promoter and an existing shareholder, pursuant to the Draft Red Herring Prospectus (DRHP).

The OFS includes the sale of up to 37,000 shares by promoter Ramesh Kunhikannan and up to 35,000 shares by existing shareholder Freny Firoze Irani.

The offer also includes a reservation of up to Rs 1.5 crore for a subscription by authorized staff.

The Company may consider a further issue of shares including a rights issue, private placement, preferential offering or other method totaling up to Rs 130 crore. When such placement is completed, the size of new issues will be reduced.

The proceeds from the re-issue, valued at Rs 130 crore, will be used to repay debt and Rs 98.93 crore will be used to fund capital expenditures for its Mysore and Manesar manufacturing facilities.

Also, the company plans to use Rs 149.30 crore to invest in its Kaynes Electronics Manufacturing Pvt Ltd branch to establish a new facility at Chamarajanagar in Karnataka. It will use up to Rs 114.74 crore to fund working capital needs and general corporate proposals.

Based in Mysore, Kaynes Technology is a leading provider of end-to-end and Internet of Things (IoT) solutions that enables integrated electronics manufacturing and has capabilities across the spectrum of electronics system design and manufacturing services.

It has experience in providing conceptual design, process engineering, integrated manufacturing and lifecycle support to key players in automotive, industrial, aerospace and defence, space, nuclear, medical, railway, internet of things, information technology (IT) sectors. and other segments.

The company has eight manufacturing facilities in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu and Uttarakhand. It has a total capacity of approximately 600 million components (as of December 2021).

For FY21, the company recorded a turnover of Rs.420.63 crore compared to Rs.368.24 crore in the previous fiscal year. Net profit for the period was Rs. 973 crore compared to Rs. 935 crore for the previous financial year.

DAM Capital Advisors and IIFL Securities are the lead bookers of the offering.