Kaynes Technology India Ltd | Globe Capital
Kaynes Technology India Ltd
Closed
Price Band
Rs 559-587
IPO Issue Period
Nov 10, 2022 to Nov 14, 2022
Issue Size
857.82 Cr
Face value
Rs. 10
Fresh issue
530.00 Cr.
Offer for sale
327.82 Cr
Minimum Shares for Retail
25 Shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
Link Intime India Private Ltd
Tentative Listing Date
Nov 22, 2022
QIB
Not More than 50% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 35% of the offer

DAM Capital Advisors Ltd
IIFL Securities Ltd

Incorporated in 2008, Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company. The company provides conceptual design, process engineering, integrated manufacturing and life-cycle support for major players in the automotive, industrial, aerospace and defence, outer-space, nuclear, medical, railways, Internet of Things (“IoT”), Information Technology (“IT”) and other segments.

The company is among the first companies in India to offer design-led electronics manufacturing to original equipment manufacturers (“OEMs”).

The company’s operations are classified under the following business verticals:

OEM – Turnkey Solutions – Box Build (“OEM – Box Build”).

OEM – Turnkey Solutions – Printed Circuit Board Assemblies (“PCBAs”) (“OEM – Turnkey Solutions”).

ODM: The company offers ODM services in smart metering technology, smart street lighting, and brushless DC (“BLDC”) technology.

Product Engineering and IoT Solutions: The company offer conceptual design and product engineering services in industrial and consumer segments.

Kaynes Technology operates eight manufacturing facilities across India in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand.

As of June 30, 2022, the company’s research and development team comprised 19 employees, including engineers, designers and other workers.

In nine months ended June 30, 2022, The company served 229 customers in 21 countries globally and multiple industry verticals such as automotive, aerospace and defence, industrial, railways, medical and IT / ITES.

The company works with over 871 vendors and sources materials from various regions including North America, Europe, and Singapore as well as locally within India, As of June 30, 2022.

For year/ period ended ( in Cr.)

H1FY22 FY21 FY20
Total Revenue 706.25 420.63 368.24
Profit After Tax 41.68 9.73 9.36
EPS 9.70 2.28 2.32
OPM (%) 13.26% 9.72% 11.22%
PATM (%) 5.90% 2.31% 2.54%

 

  • The Company has diversified business model with portfolio having applications across industry verticals
  • Long-standing relationships with marquee customers
  • Global certifications for each industry vertical catered to and multiple facilities across India with advanced Infrastructure
  • Strong supply chain and sourcing network
  • Track record of consistent financial performance
  • Experienced Promoters and senior management with extensive knowledge of the sector

1. Repayment/ prepayment, in full or part, of certain borrowings availed by the Company.

2. Funding capital expenditure towards expansion of the existing manufacturing facility at Mysore, Karnataka, and near the existing manufacturing facility at Manesar, Haryana.

3. Investment in the wholly owned Subsidiary, Kaynes Electronics Manufacturing Private Limited, for setting up a new facility at Chamarajanagar, Karnataka.

4. Funding working capital requirements of the Company.

5. General corporate purposes.

It has created a niche place in the segment and has good orders on hand. Based on its current financials though the issue appears fully priced, considering future prospects, investors may consider parking funds with medium to long-term perspectives.

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