Kaynes Technology to raise Rs 650 crore through IPO.

The Securities and Exchange Board of India (Sebi) has given the go-ahead for Kaynes Technology India Limited (KTIL) to conduct an Initial Public Offering (IPO). The Draft Red Herring Prospectus states that the Initial Public Offering (IPO) will include both a fresh issue of equity shares with a value of Rs 650 crore and an Offer For Sale (OFS) of up to 72 lakh equity shares by a promoter and an existing shareholder (DRHP). Promoter Ramesh Kunhikannan will sell up to 37 lakh equity shares as part of the OFS, and current shareholder Freny Firoze Irani will sell up to 35 lakh equity shares as part of the same transaction. According to an update provided by the regulator on Monday, the company had submitted its preliminary IPO documents to Sebi back in April. The company received its observations letter on October 6 of this year.

Utilisation of funds by. Kaynes Electronics.

According to the draft papers, the proceeds from the new issue will be used as follows: Rs 130 crore will be used to settle debt, Rs 98.93 crore will be used to support capital expenditure for its production plants in Mysore and Manesar. In addition, the company has the intention of making an investment of Rs 149.30 crore in its subsidiary Kaynes Electronics Manufacturing Pvt Ltd in order to set up a new manufacturing facility in Chamarajanagar, which is located in the state of Karnataka. Working capital and other general business expenses could total up to 114.74 billion rupees, according to their plans. Kaynes Technology is a notable end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturing company with capabilities spanning the complete range of electronic system design and manufacturing services. The company's headquarters are located in Mysore, India. Significant players in the automotive, industrial, aerospace and defense, outer-space, nuclear, medical, railways, Internet of Things (IoT), and Information Technology (IT), as well as other industries, have benefited from its conceptual design, process engineering, integrated manufacturing, and life-cycle support. Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand are the locations of the eight production sites that this company maintains. It has a total capacity of around 600 million components as of the month of December in the year 2021.

Revenue and profits

In fiscal year 21 (FY21), the company reported revenue of Rs 420.63 crore, which is an increase over the previous year's revenue of Rs 368.24 crore. The company reported a net profit of 9.73 crore for the current fiscal year, which is an increase over the previous year's net profit of 9.35 crore. The issue's book-running lead managers are DAM Capital Advisors and IIFL Securities. Recently, IKIO lighting has filled for IPO to raise Rs 350 crores. Read in Detail IKIO IPO .  

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