Kaynes Technology raises Rs 257 crore from anchor investors ahead of its IPO

• ByStartupStory     |    November 10, 2022

Kaynes Technology, an integrated electronics manufacturing startup, received Rs 256.90 crore ($31 million) from anchor investors on Wednesday, ahead of its initial public offering (IPO).

Kaynes allocated around 4.4 million equity shares at Rs 587 each to 28 international and domestic investors in the anchor round.

Malabar Investments, Ashoka Opportunities Fund (White Oak), Government Pension Fund Global, Nomura, and Goldman Sachs are among the 28 anchor investors who will invest cash.

Volrado Venture Fund (ENAM), White Oak Mutual Fund, Abakkus, ICICI Prudential MF, Axis Mutual Fund, Nippon Life India, Aditya Birla Sun Life, Mirae Asset, Franklin India, and Tata Mutual Fund were among the domestic institutions that participated.

The proceeds of the new issuance would be used to settle debts and expand the current production facilities in Mysore, Karnataka, and Manesar, Haryana. It will also invest in its subsidiary, Kaynes Electronics Manufacturing, to build a new plant in Chamarajanagar, Karnataka, and use the proceeds for working capital.

Kaynes Technology India, founded in 2008, is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing firm with capabilities spanning the whole range of electronics system design and manufacturing services.

“Out of total allocation of 43.76 lakh shares to anchor investors, 17.66 lakh shares were allocated to 9 domestic mutual funds through a total of 14 schemes,” Kaynes said in its BSE filing.

In the fiscal (FY) year ending March 2022, the firm made a profit of Rs 41.68 crore, up from Rs 9.73 crore the previous year. In FY22, it recorded revenue of Rs 706.24 crore, a 68% increase over the previous fiscal.

It has over 229 clients in 21 countries and several industry verticals such as automotive, aerospace and defense, industrial, trains, medical, and information technology.

Dixon Technologies India Limited, Syrma SGS Technology Limited, and Amber Enterprises India Limited are competitors of Kaynes.

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