Kaynes Technology shares surge on market debut as stock lists at strong premium

Kaynes Technology shares surge on market debut as stock lists at strong premium

Shares of Kaynes Technology India Ltd made a strong market debut on Tuesday with the stock listing at 778 apiece on the NSE, a premium of more than 32% as compared to its IPO issue price of 587 per share. On the BSE, Kaynes Technology shares started trading at 775 apiece.

“The company has reported strong financial growth, especially in recent years, and its margins have also significantly improved. It has a diversified business and customer profile and robust expansion in the order book; So, allottees who applied for the public issue for premium listings are advised to maintain a stop loss at 710 and wait for further upside whereas those who have medium to long-term perspective can hold the stock maintaining a stop loss at 680,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.

The initial public offer (IPO) of Kaynes Technology India received 34.16 times subscription on the last day of the offer that was open from Thursday, November 10, 2022 to Monday, November 14, 2022. The issue had a price range of 559-587 a share.

Kaynes Technology IPO had a fresh issue of 530 crore and an offer for sale (OFS) of up to 55,84,664 equity shares. The OFS consisted of sale of 20.84 lakh equity shares by promoter Ramesh Kunhikannan and 35 lakh equity shares by existing shareholder Freny Firoze Irani.

The companycollected 257 crore from anchor investors ahead of its initial share sale. It allotted 43.76 lakh equity shares to anchor investors at 587 apiece. Nomura, Goldman Sachs, ICICI Prudential Mutual Fund (MF), Axis MF, Aditya Birla Sun Life MF, Tata MF, HDFC MF and WhiteOak Capital are among the anchor investors.

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

Incorporated in 2008, Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company. The company has eight production plants in Karnataka, Haryana, Himachal Pradesh, Tamil Nadu and Uttarakhand.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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