Kaynes Technology IPO

Kaynes Technology is a prominent integrated electronics manufacturing company with capabilities spanning the entire range of electronics system design and manufacturing (“ESDM”) services, as well as IoT solutions (Source: F&S Report). Kaynes Technology IPO will hit the stock market in September 2022.

About Kaynes Technology

Kaynes Technology India Limited have more than 3 decades of expertise providing conceptual design, process engineering, integrated manufacturing, and life-cycle support to key players in the automotive, industrial, aerospace and defence, outer space, nuclear, medical, railways, Internet of Things, Information Technology, and other industries.

Their production infrastructure allows them to offer high-mix, high-value items to a variety of industrial verticals, with the capacity to produce them in variable or flexible volumes.

They are one of the leading firms in the ESDM field, providing customers with optimised product realisation solutions in flexible numbers and higher complexity goods across industry verticals (source: F&S Report). Their company is divided into various categories based on the level of service they deliver to their clients.

Growth

Using their company’s established embedded design skills, they were one of the first firms in India to offer design-led electronics production to original equipment manufacturers (Source: F&S Report). They are continuing to focus on integrating their services so that they may function as an end-to-end ESDM supplier.

They’ve evolved from an electronics production service company to a design-led manufacturer providing value-add electronics production offerings and original design production options in the fields of smart devices, IoT solutions, brushless drive technology, and Gallium Nitride technology over the years (Source: F&S Report).

They think that their foundation, which includes process standardisation, process integration at their production locations, and continuous improvement throughout key performance indicators, will encourage customer loyalty and drive repeat business.

Production Plants

In the Indian states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand, they have eight strategically positioned production plants. Their facilities are close to their consumers, allowing them to respond to their needs quickly and efficiently.

Certain of their production sites have been approved under the Software Technology Park of India, Bengaluru’s Electronics Hardware Technology Park Scheme, which provides incentives akin to a special economic zone.

They had a combined capacity of approximately 600 million components for the period as of December 31, 2021, and we had an unique line for ‘Green Manufacturing’ that is compliant with Directive 2002/95/EC Restriction of Hazardous Substances.

Their production infrastructure also comprises one design facility & two service centres as of December 31, 2021.

Kaynes Technology IPO

Kaynes Technology Limited, headquartered in Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 650 Crore and 7,200,000 equity shares on 13 April 2022.

The offer includes a fresh issue 650 crore and there is offer for sale (OFS) of 7,200,000 equity shares by the promoters mentioned in the DRHP. They are also looking for a Pre-IPO placement of 130 Crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	31-Dec-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	543.06	419.37	378.12	363.30
Total Revenue	471.93	424.66	370.17	366.60
Profit After Tax	21.82	9.73	9.36	9.73

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	2.28	2.15	3
Financial Year 2020	2.32	2.32	2
Financial Year 2019	2.38	2.38	1
Weighted Average	2.31	2.24
30 Nov. 2021	5.19	4.66

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:

• Internet of Things (“IoT”) solutions provided an end-to-end capability across the Electronics System Design and Manufacturing spectrum to an integrated electronics manufacturing player.
• Diversified business model with a portfolio of products that may be used in a variety of industries.
• Long-term partnerships with a prestigious clientele.
• Multiple facilities across India with excellent infrastructure and international certifications for every industry vertical catered to.
• Distribution network and sourcing network are strong.
• Solid financial performance in the past.
• Experienced promoters and senior management with in-depth industry experience.

Kaynes Technology Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Dixon Technologies Limited	162.81
2	1	Amber Enterprises India Limited	144.70

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the NSE on April 8, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.

Kaynes Technology IPO Details

IPO Opening Date	September 2022
IPO Closing Date	September 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	650 Crore
Offer for Sale	7,200,000 Equity shares

Kaynes Technology IPO Date

Kaynes Technology India IPO opening date is September 2022, and the closing date is September 2022. The Kaynes Technology issue may list in September 2022.

IPO Opening Date	September 2022
IPO Closing Date	September 2022
Basis of Allotment Date	September 2022
Initiation of Refunds	September 2022
Credit of Shares to Demat Account	September 2022
IPO Listing Date	September 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Kaynes Technology India Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Kaynes Technology IPO.

Kaynes Technology IPO GMP

Kaynes Technology India IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022
September 2022

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Kaynes Technology India IPO Review

Kaynes Technology India IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Kaynes Technology IPO is good or bad.

Kaynes Technology India IPO Risk

• Kaynes Technology India’s business is reliant on the sale of their customers’ products, and the loss of one or more of these clients, or a decrease in demand for their products, could have a negative impact on their operations.
• Their intended capacity expansion plans for their production plants are vulnerable to unanticipated implementation delays and cost overruns.
• They must meet stringent quality standards, as well as customer inspections and audits, and any failure to do so may result in the cancellation of current and future orders, as well as a negative influence on their reputation.
• Their products have received a number of quality certifications. Their failure to renew these accreditation on time could have a negative influence on their firm.

Other Threats

1. The current and ongoing impact of the COVID-19 pandemic on their business and operations, especially its impact on customers’ ability or desire to outsource product manufacturing, may have a negative impact on their business & operating results.
2. Their ability to codify and operationalize good business and growth plan is critical to their success. Their incapacity to manage their business and growth strategy may have a significant negative impact on their company.
3. They are vulnerable to counterparty credit risk, and any delay or non-receipt of payments might have a negative impact on their financial results.
4. They engage in certain linked party transactions in the regular course of business, and they cannot guarantee that these transactions will not negatively impact their operating results.

Kaynes Technology India IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Kaynes Technology IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Kaynes Technology India IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
September 2022	1
September 2022	2
September 2022	3

Kaynes Technology India Limited Management

They are led by seasoned Promoters with extensive knowledge of the ESDM business. Ramesh Kunhikannan, the Promoter and Managing Director, founded Kaynes Technology as a lone proprietorship in 1989.

Ramesh Kunhikannan is a technocrat who has worked in the electronic manufacturing service sector for over 33 years. The Promoter & Whole-Time Director, Savitha Ramesh, has been with the firm since 1996 and is responsible for the overall implementation of process & control across company activities.

They have been able to develop their activities and establish a strong footprint in India under their leadership. They also have a team of competent and experienced Key Management Personnel who have proven their ability to predict & capitalise on shifting market trends, manage and grow their operation.

Kaynes Technology India Limited‘ Promoters

• Ramesh Kunhikannan
• Savitha Ramesh
• RK Family Trust

Promoter’s Holding

Pre Issue Share Holding	88.39%
Post Issue Share Holding

Kaynes Technology India Limited Prospectus