Papers filed by Kaynes Technology with Sebi to raise funds via IPO
- ByStartupStory | April 16, 2022
An end-to-end and IoT solutions enabled integrated electronics manufacturing player, Kaynes Technology India Limited (KTIL), has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO). according to the draft red herring prospectus (DRHP), the IPO consists of a fresh issue of equity shares aggregating to about Rs 650 crore, and an offer for sale (OFS) by a promoter and an existing shareholder of up to 7.2 crore equity shares.
The OFS comprises sale by promoter Ramesh Kunhikannan of up to 37 lakh equity shares and by existing shareholder Freny Firoze Irani up to 35 lakh equity shares.
The offer also includes reservation by eligible employees of up to Rs 1.5 crore for subscription.
A further issue of equity shares, including a rights issue, private placement, preferential offer, or any other method aggregating up to Rs 130 crore may be considered by the company. The fresh issue size will be reduced, if such placement is completed.
The proceeds from the fresh issue in order to repay debt worth Rs 130 crore will be used and for funding capital expenditure for its manufacturing facilities at Mysore and Manesar worth Rs 98.93 crore will be utilised.
Also, for setting up a new facility at Chamarajanagar in Karnataka, the company plans to use Rs 149.30 crore towards investment in its arm Kaynes Electronics Manufacturing Pvt Ltd. For funding working capital requirements and general corporate proposes, it will use up to Rs 114.74 crore.
Mysore-based Kaynes Technology is a leading end-to-end and IoT (Internet of Things) solutions that enables integrated electronics manufacturing players, having capabilities across the entire spectrum of electronics system design and manufacturing services.
It has experience in providing conceptual design, integrated manufacturing process, engineering, and life-cycle support for major players in the automotive, medical, railways, industrial, aerospace and defence, outer-space, nuclear, Internet of Things, information technology (IT) and other segments.
The company has eight production plants in the states of Karnataka, Tamil Nadu, Haryana, Himachal Pradesh, and Uttarakhand. As of December 2021, it has a total capacity of approximately 600 million components.
As against Rs 368.24 crore in the preceding fiscal, the company posted a revenue of Rs 420.63 crore for FY21. As compared to Rs 9.35 crore in the previous financial year, Net profit for the period under review was at Rs 9.73 crore.
The book-running lead managers to the issue are DAM Capital Advisors and IIFL Securities.
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