Will you subscribe to Kaynes Technology India's IPO on November 10? Read this before investing.

The IPO will comprise a fresh issue of Rs. 530 crores shares and 55.84 lac OFS of shares.

Kaynes Technology India IPO to open on November 10

Electronics manufacturing company led by design, Kaynes Technology India, wants to launch its IPO on November 10. It would be this year's 29th IPO launch. The price band for its initial public offering would be Rs. 559-587/share. The anchor books opens on November 9 for one day, and the issue closes on November 14. The IPO will have an Rs. 530 crores fresh issue of shares and an OFS (offer-for-sale) by investors and promoters of 55.84 lc shares. The upper price band for the fundraising will be Rs. 857.9 crores, and Ramesh Kunhikannan, promoter, will offload 20.84 lakh shares. Freny Firoze Irani will sell the remaining shares (35 lac). Employee share reserve stands at Rs. 1.5 crores. 

Also ReadShould you subscribe to fusion microfinance? 

How Much To Bid? 

Investors must bid a minimum of 25 shares. They will be allowed to bid in multiples of 25. Kaynes has collected Rs. 130 crores through pre-IPO placement already, in which it issued 23.38 lac shares at Rs. 555.85/share. The total issue size's half will be reserved for QiBs (Qualified institutional buyers). It would include 15% for high net worth individuals (HNIs), an anchor book, and the remaining 35% for retail.

Where Will The Proceeds Go?

The company wants to use the issue's proceeds to meet working capital needs and repay debts. The funds will also be used to expand the manufacturing units at Manesar and Mysuru. The funds will also be used to set up a new Chamarajanagar facility. The total shareholding of promoters in the company is 79.78%, and the public holds the rest. Investors include Ashoka India Equity Investment Trust Plc, Volrado Venture Partners Fund II, Acacia Banyan Partners, and Freny Firoze Irani. Ashoka India Equity Investment Trust Plc, Volrado Venture Partners Fund II, and Acacia Banyan Partners invested in the company through the pre-IPO placement in October. 

Also ReadAll you need to know about Global Health IPO.

The company provides end-to-end IoT solution-enabled integrated electronics manufacturing. It gives life-cycle support, integrated manufacturing, process engineering, and conceptual design for IT, IoT, railways, medical, nuclear, outer space, defense, aerospace, industrial, and automotive players. Link Intime is the offer's registrar, and IIFL Securities and DAM Capital Advisors are the issue's book-running lead managers. 

Financials of Kaynes Technology India

Financial Performance 

  1. FY2019
    Revenue:
    Rs. 366.60 crores
    Expenses: Rs. 353.03 crores
    Net Income: Rs. 9.60 crores
    Margin (%): 2.62
     
  2. FY2020
    Revenue: Rs. 370.17 crores
    Expenses: Rs. 358.89 crores
    Net Income: Rs 10.07 crores
    Margin (%): 2.72
     
  3. FY2021
    Revenue: Rs. 424.66 crores
    Expenses: Rs. 413.79 crores
    Net Income: Rs. 8.85 crores
    Margin (%): 2.08
     
  4. FY2022
    Revenue: Rs. 710.35 crores
    Expenses: Rs. 651.38 crores
    Net Income: Rs. 41.27 crores
    Margin (%): 5.81

Electronics manufacturing company led by design, Kaynes Technology India, wants to launch its IPO on November 10. It would be this year's 29th IPO launch. The price band for its initial public offering would be Rs. 559-587/share. The anchor books opens on November 9 for one day, and the issue closes on November 14. The IPO will have an Rs. 530 crores fresh issue of shares and an OFS (offer-for-sale) by investors and promoters of 55.84 lc shares. The upper price band for the fundraising will be Rs. 857.9 crores, and Ramesh Kunhikannan, promoter, will offload 20.84 lakh shares. Freny Firoze Irani will sell the remaining shares (35 lac). Employee share reserve stands at Rs. 1.5 crores. 

Also ReadShould you subscribe to fusion microfinance? 

How Much To Bid? 

Investors must bid a minimum of 25 shares. They will be allowed to bid in multiples of 25. Kaynes has collected Rs. 130 crores through pre-IPO placement already, in which it issued 23.38 lac shares at Rs. 555.85/share. The total issue size's half will be reserved for QiBs (Qualified institutional buyers). It would include 15% for high net worth individuals (HNIs), an anchor book, and the remaining 35% for retail.

Where Will The Proceeds Go?

The company wants to use the issue's proceeds to meet working capital needs and repay debts. The funds will also be used to expand the manufacturing units at Manesar and Mysuru. The funds will also be used to set up a new Chamarajanagar facility. The total shareholding of promoters in the company is 79.78%, and the public holds the rest. Investors include Ashoka India Equity Investment Trust Plc, Volrado Venture Partners Fund II, Acacia Banyan Partners, and Freny Firoze Irani. Ashoka India Equity Investment Trust Plc, Volrado Venture Partners Fund II, and Acacia Banyan Partners invested in the company through the pre-IPO placement in October. 

Also ReadAll you need to know about Global Health IPO.

The company provides end-to-end IoT solution-enabled integrated electronics manufacturing. It gives life-cycle support, integrated manufacturing, process engineering, and conceptual design for IT, IoT, railways, medical, nuclear, outer space, defense, aerospace, industrial, and automotive players. Link Intime is the offer's registrar, and IIFL Securities and DAM Capital Advisors are the issue's book-running lead managers. 

Financials of Kaynes Technology India

Financial Performance 

  1. FY2019
    Revenue:
    Rs. 366.60 crores
    Expenses: Rs. 353.03 crores
    Net Income: Rs. 9.60 crores
    Margin (%): 2.62
     
  2. FY2020
    Revenue: Rs. 370.17 crores
    Expenses: Rs. 358.89 crores
    Net Income: Rs 10.07 crores
    Margin (%): 2.72
     
  3. FY2021
    Revenue: Rs. 424.66 crores
    Expenses: Rs. 413.79 crores
    Net Income: Rs. 8.85 crores
    Margin (%): 2.08
     
  4. FY2022
    Revenue: Rs. 710.35 crores
    Expenses: Rs. 651.38 crores
    Net Income: Rs. 41.27 crores
    Margin (%): 5.81

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