Raised Rs 257 crore from anchor investors including Nomura, Goldman Sachs, EastSpring Investment, Carmignac Portfolio, Theleme India, Cohesion MK Best Ideas besides others

MUMBAI, NOVEMBER 10, 2022 (GPN):  Kaynes Technology India Limited (“Kaynes Technology” or “Company”), an end-to-end and IoT solutions enabled integrated electronics manufacturing player, having capabilities across the entire spectrum of electronics system design and manufacturing (“ESDM”) services, has received bids of 24,29,325 shares against the offered 1,04,70,246 equity shares, at a price band of ₹559-587, according to the data available on the stock exchanges. Overall the issue was subscribed 0.23 times on the first day of bidding.

The reserved portion for qualified institutional buyer portion saw a subscription of 0.52 times. Employee portion was subscribed 2.04 times. Non-Institutional segment saw a response of 0.10 times. The Retail Portion saw a blockbuster response and was subscribed 0.12 times. The issue kicked off for subscription on Thursday, November 10, and will close on Monday, November 14, 2022.

Kaynes Technology Ltd raised Rs 257 crore from foreign institutions including Nomura, Goldman Sachs, EastSpring Investment, Carmignac Portfolio, Theleme India, Cohesion MK Best Ideas and domestic funds i.e Tata Mutual Fund, Aditya Birla Sun Life, ICICI Prudential MF, WhiteOak Capital, Nippon Life India, HDFC MF, were the mutual funds that participated in the anchor book.

Broking houses like Ventura Securities, Philip Capital, and Anand Rathi have given a “Subscribe” rating to the issue.

Kaynes Technology India Ltd. (KTIL), an end-to-end and IoT solutions-enabled electronics system design & manufacturing (ESDM) services company, as OEM manufacturers are rapidly realising the potential and contributions of ESDM firms, which has resulted in their engagement growing beyond production. The company is one of the first businesses in India to provide original equipment manufacturers (“OEMs”) design-led electronics production leveraging their experienced embedded design capabilities. China +1 strategy, import substitution and focus on enhancing local value addition are other key tailwinds the analysts believe are beneficial to the company’s growth.On valuation front, analysts believe that Kaynes is priced in line with its peers.

The issue with a face value of ₹10 per Equity Share consists of a fresh issue of Equity Shares aggregating to ₹ 530 crore (the “Fresh Issue”), and an offer for sale of up to 5,584,664 Equity Shares by Promoter and other Selling Shareholder. The offer also includes a reservation of up to ₹1.5 crore for subscription by eligible employees.

DAM Capital Advisors Limited and IIFL Securities Limited are the BRLMs to the Offer and Link Intime India Private Limited is the registrar to the Offer.

Company Information

Ramesh Kunhikannan, a technocrat founded Kaynes Technology as a sole proprietorship in 1989 and has over 33 years of expertise in the electronic manufacturing services industry, is the Company’s Promoter and Managing Director. Kaynes Technology was one of the first companies to offer design led electronics manufacturing to original equipment manufacturers (“OEMs“) using its mature embedded design capabilities. Among the listed space, Kaynes Technology competes with Dixon Technologies India Limited, Syrma SGS Technology Limited and Amber Enterprises India Limited.

The table below shows subscription data for all the categories of investors:

KAYNES TECHNOLOGY INDIA LIMITED Last updated on 10 Nov 2022 | 05:00:00 PM Sr.No. Category No.of shares offered / reserved No. of shares bid for No. of times of total meant for the category 1 Qualified Institutional Buyers (QIBs) 29,23,888 15,33,925 0.52 1(a) Foreign Institutional Investors (FIIs) – – – 1(b) Domestic Financial Institutions(Banks/ Financial Institutions(FIs)/ Insurance Companies) – – – 1(c) Mutual Funds – – – 1(D) Others – 15,33,925 – 2 Non Institutional Investors(NIIS) 22,55,858 2,23,925 0.10 2.1 Non Institutional Investors(Bid amount of more than Ten Lakh Rupees) 15,03,905 1,22,825 0.08 2.1(a) Corporates – 1,725 – 2.1(b) Individuals (Other than RIIs) – 1,14,200 – 2.1(c) Others – 6,900 – 2.2 Non Institutional Investors(Bid amount of more than Two Lakh Rupees and upto 10 lakh rupees) 7,51,953 1,01,100 0.13 2.2(a) Corporates – – – 2.2(b) Individuals (Other than RIIs) – 97,225 – 2.2(c) Others – 3,875 – 3 Retail Individual Investors (RIIs) 52,63,667 6,16,675 0.12 3(a) Cut Off – 5,35,025 – 3(b) Price Bids – 81,650 – 4 Employee Reserved 26,833 54,800 2.04 4(a) Employee (Cut off) – 49,750 – 4(b) Employee (Price) – 5,050 – 5 Reservation PortionShareholder – – – 5(a) RPS (Cut off) – – – 5(b) RPS (Price) – – – Total 1,04,70,246 24,29,325 0.23

BSE + NSE Cumulative Demand Live Link:

https://www.bseindia.com/markets/publicIssues/CummDemandSchedule.aspx?ID=5929&status=L