Introduction
The year 2021 saw 125 IPOs and as 2022 is coming to an end, the number of upcoming IPOs is still continuing. The latest upcoming IPO belongs to Kaynes Technologies India Limited.
Kaynes Technologies India Ltd IPO was open for subscription from 10th to 14th November 2022. The Rs.858-crore Kaynes Technology India IPO was subscribed more than 34 times on the final day of bidding. The issue’s retail portion was subscribed 4.09 times. As of November 15, the GMP (grey market premium) of the company’s shares was Rs. 138.
The details of this IPO and its review are mentioned hereunder.
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IPO Details
The various details of the Kaynes Technologies India Limited IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are,
| Category | Details |
| IPO Opening Date | 10th November 2022 |
| IPO Closing Date | 14th November 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs.10 per share |
| IPO Price Band | Rs. 559 – Rs. 587 per share |
| IPO Size | Rs. 857.82 crores |
| Offer For Sale | Rs. 327.82 crores |
| Fresh Issue | Rs. 530 crores |
- IPO Dates
The important dates for the Kaynes Technologies India Limited IPO are highlighted below.
| Event | Date |
| Price Band Allotment | 4th November 2022 |
| Anchor Investors Allotment | 9th November 2022 |
| Opening date | 10th November 2022 |
| Closing Date | 14th November 2022 |
| Allotment date | 17th November 2022 |
| Refund Date | 18th November 2022 |
| Share Credit Date | 21st November 2022 |
| Listing Date | 22nd November 2022 |
- IPO Lot Sizes
The subscription for shares of Kaynes Technologies India Limited IPO can be done in lots by different investor categories. The details of the lot sizes for this IPO are mentioned below.
| Category | Details |
| Minimum investment | 1 lot |
| Shares in each lot | 25 shares |
| Minimum amount of investment per lot | Rs. 14,675 |
| Maximum permissible investment in Lots | 13 lots |
| Maximum shares for investment | 325 shares |
| Maximum amount of investment permissible | Rs. 1,90,775 |
- IPO Reservation
The categories of eligible investors and their share in the IPO are
| Category of Investor | Reservation of the IPO applicable |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
| RII (Retail Individual Investors) | 35% |
Kaynes Technologies India Limited IPO Objectives
The objectives of the Kaynes Technologies India Limited IPO are mentioned below.
- The IPO has a fresh issue of Rs. 530 crores and the proceeds from the same will be used for repayment or prepayment of existing borrowings of the company.
- The company will also use the proceeds to fund its capital expenditure for the expansion of the existing manufacturing unit at Mysore, Karnataka as well as in Manesar, Haryana.
- Another direction of the proceeds will be towards setting up the new facility near Chamrajanagar, Karnataka as part of their investment in the wholly owned subsidiary, Kaynes Electronics Manufacturing Private Limited
- Besides the above purposes, the funds will be used for the capital requirements of the company and meet other general corporate purposes.
- This IPO is partly in the nature of an Offer for Sale. Therefore, the proceeds from the same will not be received by the company after the deduction of offer expenses and taxes thereon.
About Kaynes Technologies India Limited IPO
Kaynes Technologies India Limited is a leading name in the field of end-to-end and IoT solutions-enabled integrated electronics manufacturing company. This company was incorporated in 2008 and targets key industries like aerospace and defence, automotive, medical, outer-space, nuclear, railways, Information Technology, and other segments by providing them with conceptual design, process engineering, integrated manufacturing, and life-cycle support.
The company has eight manufacturing facilities including two service centers and one design center in various states like Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand. The company has an international footprint too while sourcing materials for its over 871 vendors from abroad through countries like North America, Europe, and Singapore. The company also has a huge bulk of Indian vendors to meet their requirements.
Financials of the company
The core financials of the company are tabled below.
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS | Diluted EPS | RONW |
| 2022 | 622 | 706 | 42 | 9.70 | 8.93 | 20.54% |
| 2021 | 419 | 420 | 10 | 2.28 | 2.15 | 6.87% |
| 2020 | 378 | 368 | 9 | 2.32 | 2.32 | 9.90% |
Strengths of the company
Some of the key strengths of the company are highlighted below.
- Leading provider of end-to-end and IoT solutions that are enabled by integrated electronics manufacturing players.
- Diverse product portfolio catering to different sectors and verticals.
- Long-standing relationships with its marquee customers.
- Strong supply chains and a sourcing network.
- Experienced promoters and highly skilled senior management.
Risks of investment
The different risks that are faced by the company are highlighted below.
- Chances of counterparty credit risks.
- Unsecured loans may give rise to chances of default in repayment and consequent interest impact.
- The company has huge inventory levels and a lower inventory turnover ratio.
- Chances of under-utilization of the manufacturing capacities.
- Stringent compliance requirements from safety, health, environmental, and labour laws and any deviation from the same may attract penal actions.
What is the Grey Market Premium (GMP) on Kaynes Technologies India Limited IPO?
As of November 15, 2022, the Kaynes Technologies India Ltd shares were available at a GMP (grey market premium) of Rs. 138.
Should you apply for Kaynes Technologies India Limited IPO?
The company has a stronghold in its area of operations and also has diverse revenue sources from different sectors. The financials of the company show a dip in its profits in FY 20 and FY 21 but a significant recovery in FY022. The increase in the RONW is also significant as well as an increase of approximately 38.4% CAGR in revenues over the past three years. However, the risk of investment in the company is also high. Investors can consider the company for long-term investment options or await its listing to understand its pricing better. If the shares are available at a discount, investment in the company can be a good bet in the long run.
How to apply for Kaynes Technologies India Limited IPO?
Investors can invest in this IPO through the Fisdom app.
FAQs
The issue size of Kaynes Technologies India Limited IPO is Rs.857.82 crores.
The price band for Kaynes Technologies India Limited IPO is Rs.559 – Rs.587 per share.
The GMP for Kaynes Technologies India Limited IPO was Rs. 138 as of Nov 15.
The Registrar for Kaynes Technologies India Limited IPO is Link Intime India Private Ltd.
The lot size of Kaynes Technologies India Limited IPO is 25 shares.
