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The IPO of Kaynes Technology will close for public subscription today. The issue was subscribed 1.10 times at the end day of the second day of subscription on Friday, thanks to a strong response from QIB and employees.
The company has fixed the IPO price band at ₹559-587 and the market lot is 25 shares.
Kaynes Technology is an end-to-end and IoT solutions-enabled integrated electronics manufacturer, having capabilities across the entire spectrum of electronics system design and manufacturing.
The quota for Qualified Institutional Buyers (QIBs) was subscribed 2.45 per cent, and the employees portion was subscribed 3.22 times. The window reserved for retail Individual Investors (RIIs) and non-institutional investors saw bids for 87 per cent and 77 per cent respectively.
While 50 per cent is reserved QIBs, retail investors and NIIs can subscribe up to 35 per cent and 15 per cent, respectively.
Anchor investors
The IPO comprises fresh issue of equity shares worth ₹530 crore and an Offer For Sale (OFS) of up to 55.85 lakh equity shares by a promoter and existing shareholder. The OFS comprises sale of 20.84 lakh equity shares by promoter Ramesh Kunhikannan and 35 lakh equity shares by existing shareholder Freny Firoze Irani.
Ahead of the issue, the company on Wednesday garnered ₹256.90 crore from anchor investors by allocating 43.76 lakh shares at ₹587 a share to them.
Among the anchor investors are FPIs such as Nomura, Goldman Sachs, Eastspring Investments, Public Sector Pension Investment Board, Ashoka India Opportunities Fund (White Oak), Government Pension Fund Global, Malabar Investments, Carmignac, Theleme, MK Cohesion and India Acorn ICAV. Besides, shares have been allocated to domestic institutions such as 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.
How to use the proceeds
Proceeds from the fresh issue will be used to repay debt, fund capital expenditure at the Mysore and Manesar manufacturing facilities, and for working capital requirements. The company also intends to invest in its arm, Kaynes Electronics Manufacturing Pvt Ltd, to set up a new facility at Chamarajanagar in Karnataka.
Kaynes Technology has eight manufacturing facilities in Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand. As on June 30, 2022, it had an order book of ₹2,266.26 crore.
DAM Capital Advisors Ltd and IIFL Securities Ltd are the book-running lead managers and Link Intime India Private Ltd is the registrar to the offer.
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