Kaynes Technology India Limited (KTIL), a player in end-to-end and IoT solutions for integrated electronics manufacturing, has submitted preliminary documents to the capital markets regulator, Sebi, to raise funds through an initial public offering (IPO) . The IPO consists of a new share issue totaling Rs 650 crore, and an Offer for Sale (OFS) of up to 7.2 crore shares by a promoter and an existing shareholder, according to the draft red herring prospectus (DRHP ).
The OFS includes the sale of up to 37 lakh shares by promoter Ramesh Kunhikannan and up to 35 lakh shares by existing shareholder Freny Firoze Irani. The offer also includes a reservation of up to Rs 1.5 crore for subscriptions by eligible employees.
The company may consider further issuance of shares including rights offering, private placement, preferential offer or any other method which together can amount to Rs 130 crore. When such placement is completed, the size of the new issue will be reduced. The proceeds of the new issue worth Rs 130 crore will be used to repay debts and Rs 98.93 crore will be used to finance capital expenditures for the production facilities in Mysore and Manesar.
The company also plans to use Rs 149.30 crore for investment in its Kaynes Electronics Manufacturing Pvt Ltd branch to set up a new facility at Chamarajanagar in Karnataka. It will use up to Rs 114.74 crore to finance working capital needs and general business proposals. Mysore-based Kaynes Technology is a leading player in end-to-end and IoT (Internet of Things) solutions for integrated electronics manufacturing, with capabilities across the spectrum of electronic system design and fabrication.
It has experience in providing conceptual design, process engineering, integrated manufacturing and lifecycle support for major players in the automotive, industrial, aerospace and defense, aerospace, nuclear, medical, railway, Internet of Things, information technology (IT) and other segments. The company has eight manufacturing facilities in the states of Karnataka, Haryana, Himachal Pradesh, Tamil Nadu and Uttarakhand. It has a total capacity of approximately 600 million components as of December 2021.
For FY21, the company posted revenue of Rs 420.63 crore as against Rs 368.24 crore in the previous fiscal year. The net profit for the reporting period was Rs 9.73 crore as compared to Rs 9.35 crore in the previous financial year. DAM Capital Advisors and IIFL Securities are the book-running lead managers on the matter.
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