IPO screener. Kaynes Technology suscribed 23% on Day 1

The IPO of Kaynes Technology has been subscribed 23 per cent on the first day of subscription on Thursday.

Kaynes Technology India Limited 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 IPO will close on November 14.

Kaynes Technology India Limited has fixed the IPO price band as ₹559-587 and the market lot is 25 shares.

The quota for Qualified Institutional Buyers (QIBs) got subscribed 52 per cent while the category for Retail Individual Investors (RIIs) received 12 per cent and non-institutional investors quota was subscribed 10 per cent; employees’ quota was subscribed a little over two times.

While 50 per cent is reserved QIBs, the 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 included 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.

Utility of funds

Proceeds from the fresh issue will be used to repay debt, fund capital expenditure at Mysore and Manesar manufacturing facilities and for working capital requirements. The company also intends to invest in its arm Kaynes Electronics Manufacturing Pvt Ltd for setting up a new facility at Chamarajanagar in Karnataka.

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.

Kaynes Technology has eight manufacturing facilities in Karnataka, Haryana, Himachal Pradesh, Tamil Nadu, and Uttarakhand. As on June 30, 2022, Kaynes had an order book of ₹2,266.26 crore, securing orders across business verticals.

DAM Capital Advisors Limited and IIFL Securities Limited are the book-running lead managers and Link Intime India Private Limited is the registrar to the offer.

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