Kaynes Technology India filed draft papers with SEBI seeking funding through an IPO

Kaynes Technology India Limited (KTIL), an integrated electronics manufacturing business with end-to-end and IoT solutions, has filed preliminary paperwork with capital markets regulator Securities and Exchange Board of India (SEBI) to acquire money through an Initial Public Offering (IPO). According to the draught red herring prospectus, the IPO will include a fresh issue of equity shares worth Rs 650 crore and an offer for sale (OFS) of up to 7.2 crore equity shares by a promoter and an existing shareholder (DRHP).

Ramesh Kunhikannan has up to 3.70 million shares in the OFS, while Freny Firoze Irani has up to 3.50 million shares. The corporation is owned by Kunhikannan, who owns 87.14 percent, and Irani, who owns 11.36 percent.

The Rs 130 crore raised from the offer will be used to pay off debt. Its total outstanding borrowings were Rs 212.97 crore as at February 28, 2022.

The company would use Rs 98.93 crore to cover capital expenditures at its Mysore and Manesar manufacturing facilities. The company has eight strategically positioned production plants in Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand as of December 2021.

Kaynes Technology also intends to invest Rs 149.30 crore in its subsidiary Kaynes Electronics Manufacturing Pvt Ltd, which will be used to build a new facility in Karnataka.

The revenues would be used to satisfy its working capital requirements to the tune of Rs 114.74 crore. Net working capital requirements were Rs 253.92 crore in December 2021.

The issue’s primary managers are DAM Capital Advisors and IIFL Securities.

ABOUT KAYNES TECHNOLOGY 

Kaynes is a major integrated electronics manufacturing company with capabilities throughout the entire range of electronics system design and manufacturing (ESDM) services, as well as IoT solutions.

It has provided conceptual design, process engineering, integrated manufacturing, and life-cycle support to significant players in the automotive, industrial, aerospace and defence, outer space, nuclear, medical, railways, Internet of Things (IoT), information technology (IT), and other sectors.

It had a combined capacity of approximately 600 million components as of December, and it served 313 clients in 20 countries.

Revenue for FY21 was Rs 420.63 crore, up from Rs 368.24 crore the previous year. The net profit for the period was Rs 9.73 crore, compared to Rs 9.36 crore the previous year.