Kaynes Technology LTD offers end-to-end services and IoT solutions. The business offers conceptual design, process engineering, integrated manufacturing, and life-cycle support for significant companies in the automotive, industrial, aerospace and defence, outer space, nuclear, medical, railways, Internet of Things (“IoT”), information technology (“IT”), and other areas. The kaynes Technology IPO will kick off its initial public offering (IPO) for public subscription this week on Thursday, November 10, 2022.
Kaynes Technology IPO Details
|IPO Date||Nov 10, 2022 to Nov 14, 2022|
|Listing Date||Nov 22 2022|
|Face Value||₹10 per share|
|Price||₹559 to ₹587 per share|
|Lot Size||25 Shares|
|Issue Size||[.] shares of ₹10 |
(Aggregating up to ₹857.82 Cr)
|Fresh Issue||[.] shares of ₹10 |
(Aggregating up to ₹530.00 Cr)
|Offer for Sale||5,584,664 shares of ₹10 |
(Aggregating up to ₹327.82 Cr)
|Issue Type||Book Built Issue IPO|
|Listing At||BSE, NSE|
|QIB Shares Offered||Not more than 50% of the Net Offer|
|NII (HNI) Shares Offered||Not less than 15% of the Net Offer|
|Retail Shares Offered||Not less than 35% of the Net Offer|
|Company Promoters||Ramesh Kunhikannan, Savitha Ramesh and RK Family Trust are the company promoters.|
Kaynes Technology IPO: Tentative Dates
|Opening Date||Nov 10, 2022|
|Closing Date||Nov 14, 2022|
|Basis of Allotment||Nov 17, 2022|
|Initiation of Refunds||Nov 18, 2022|
|Credit of Shares to Demat||Nov 21, 2022|
|Listing Date||Nov 22, 2022|
Kaynes Technology IPO: Industry Overview
The market for ESDM was valued at USD 804 billion in 2020 and is projected to rise at a 4.5% CAGR to USD 1,002 billion in 2025. Up to 2018, the worldwide ESDM market grew steadily, riding the wave of growing OEM outsourcing activities and rising electronics content. However, in 2019, the potential began to stall because of a number of concerns, including the saturation of the consumer electronics market and the drop in global car sales, as well as supply chain restrictions brought on by the escalating trade tensions between the US and China.
With over 45.5% of the market, China dominates the ESDM industry globally. Its supremacy in the world market is ascribed to a combination of technological superiority and cost effectiveness in electronics manufacture. Urbanization, IoT, and ongoing digitalization are a few major themes that are influencing future growth prospects. Its low operational costs, accessibility to a huge pool of highly skilled workers, infrastructure, logistical benefits, and close proximity to the greatest end-user base across all end-user verticals make it a high growth area.
Kaynes Technology IPO: Company Overview
For Support Services, Kaynes Technology LTD has locations in Bangalore, Delhi, and Cochin. Based on the level of services it offers to its clients, its business is categorised under the following business verticals:
OEM-Turnkey Solutions-Box Build: This company carries out “Build to Print” or “Build to Specifications” of complicated box builds, sub-systems, and products for a variety of industrial verticals.
OEM – Complete Solutions – PCBA: This company provides turnkey electronic manufacturing services, including mass production, for PCBAs, cable harnesses, magnetics, and plastics.
ODM: Services in smart metering, smart street lighting, brushless DC (BLDC), inverter, gallium nitride-based charging, and IoT solutions for creating smart consumer products or gadgets connected to IoT.
Kaynes Technology IPO: Objectives
The proceed will be used for the following objectives:
- Repayment/ prepayment, in full or part, of certain borrowings availed by the Company.
- Funding capital expenditure towards expansion of the existing manufacturing facility at Mysore, Karnataka, and near the existing manufacturing facility at Manesar, Haryana.
- Investment in the wholly owned Subsidiary, Kaynes Electronics Manufacturing Private Limited, for setting up a new facility at Chamarajanagar, Karnataka.
- Funding working capital requirements of the Company.
- General corporate purposes.
Kaynes Technology IPO: Financials
Kaynes Technology LTD Strengths
- Solutions for the Internet of Things (“IoT”) have made it possible for integrated electronics manufacturers to offer end-to-end capabilities across the entire Electronics System Design and Manufacturing spectrum.
- Business model with a wide range of applicability across different industrial verticals.
- Enduring connections with a prestigious clientele.
Kaynes Technology LTD Weaknesses
- Increasing competition in the electronics system design.
- Rely on the continued operations of manufacturing facilities.
- Had negative net operating cash flows in the past
Company Contact Information
Kaynes Technology India Ltd
Food Industrial Estate,
Metagalli P.O., Mysore – 570016,
Phone: +91 82125 82595
Kaynes Technology IPO Registrar
Phone: +91-22-4918 6270
Kaynes Technology IPO Lead Manager(s)
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IIFL Securities Ltd (Past IPO Performance)